First supplementary memorandum submitted
by the Rt Hon Charles Clarke MP, Secretary of State, Department
for Education and Skills
At the Committee hearing on 7 July I promised
to provide details of the work being undertaken on education maintenance
allowances (EMAs).
Capita's involvement in the EMA scheme is as
the national Assessment and Payment Body (APB). As such, Capita
will be responsible for providing national administration services
in support of the EMA scheme. These include processing application
forms, making payments to students, and operating information
services, including a telephone contact centre and a web site.
Capita were selected to run the APB service
after a rigorous and highly competitive procurement exercise which
was approved by the Office of Government Commerce (OGC). The Department
conducted detailed negotiations over several months with three
potential suppliers (drawn from an opening list of 14 bidders)
before deciding to appoint Capita. In assessing final tenders,
we carefully scrutinised delivery plans and took account of track
records in other contracts.
We have taken a great deal of care to design
the scheme so it can work effectively. The underlying business
processes for EMA were designed by the Department in consultation
with stakeholders, and were explored with potential suppliers
of the APB service before we went to contract.
No other companies are involved in running the
outsourced process for EMA. But Capita's role is only one part
of the overall programme. In particular, there is a critical role
for schools and colleges in determining when weekly payments should
be withheld from students and deciding on bonus payments. The
Learning and Skills Council has led the establishment of 47 local
EMA partnerships to support the implementation of the scheme in
schools and colleges, and to promote the scheme locally—particularly
to young people at most risk of dropping out at age 16. LEAs have
an important role within these in supporting awareness raising
amongst year 11 pupils, and working with other local partners
to ensure effective delivery of the scheme in schools.
There has been good progress in the implementation
of EMA so far. The project received a green light in the OGC gateway
four review in April. The Department's relationship with Capita
has taken into account lessons from earlier projects such as ILA.
In an implementation of this scale it would be naive of me to
say that no problems of any kind will be encountered in 2004.
Nevertheless, I share David Normington's view that EMA has been
taken forward in the right way.
9 July 2004
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