Home Affairs CommitteeWritten evidence submitted by Serco (ASY 104)

North-West Region—Cost of Accommodation

Background

In the Committee hearing on 25th July 2013 Mr Stafford gave the Committee the rate per day per person received from the Home Office for the Scotland/NI Region, and the amount Serco paid out to sub-contractors for the service in that region for dispersed accommodation. Following the hearing the Inquiry Manager requested comparable data for the NW Region if possible.

Scotland & NI—Dispersed Accommodation

As noted to the Committee, in Scotland and Northern Ireland we sub-contract the provision of all dispersed accommodation hence we can clearly breakdown, as Mr Stafford did for the Committee, what we receive per person and the amount we pay out to our sub-contractor. The amount we pay them includes maintenance, utilities bills, council tax, the support services provided and other associated costs.

NW Region—Dispersed Accommodation

In the NW Region we do not subcontract to a single entity in the same way. Serco manages the properties directly, and negotiates rental deals with a range of providers (landlords). It is not possible therefore to provide directly comparable figures showing amount received and total amount paid out.

We can, however, supply the following analysis which demonstrates broad averages of the amount we receive per person per day in that region, and the rental cost per property per Service User for dispersed accommodation.

1. On average Serco is paid £9.14 per Service User per day by the Home Office;

2. Across our property portfolio we pay, on average, £8.29 per day per Service User;

3. We also have other costs on top of this £8.29/day rental cost including cleaning, utilities and Service User support.

Caveats

We would caution however that this is not an exact comparator with the figures given for the Scotland and NI Region as a number of caveats apply:

1) As noted in the commentary, unlike the Scotland/NI figures, the NW England figure only covers the cost of rent. This does not include such things as maintenance, utilities bills, the support services provided and other associated costs, all of which are additional costs which Serco meets out of the amount per person received from government. We are unable to provide the breakdown of all of these and thus the total expenditure per person per day.

2) Therefore it is not possible to calculate the precise per person

Serco

July 2013

Prepared 11th October 2013