November 16, 2009: Prisons: Public Or Private?

The Ministry of Justice has today announced competitions for the management of five prisons: Birmingham, Buckley Hall, Doncaster, Featherstone 2 and Wellingborough. Public, private and third sector providers will have the opportunity to compete for all five establishments.

Buckley Hall and Doncaster are to be re-competed as their current contracts are coming to an end. Birmingham and Wellingborough are both public sector prisons and will be market tested for the first time. Featherstone 2 is an expansion of Featherstone prison and requires a contract to operate.

Justice Secretary Jack Straw announced on 27 April 2009 plans to ensure that prison and probation services work as efficiently and effectively as possible. The government argues that competition is a proven mechanism to improve performance and price, and public prisons have improved in the face of competition, and that it will also ensure the best use of taxpayers' money.

The competitive tendering of prisons has led to cost savings of between 10 and 22 per cent according to a Department of Trade and Industry report in 2005. The report also found that where competition has been introduced in one area, it can lead to savings in others through the transfer of best practice.

It has led to service improvement across the board, including in the public sector with leaner management structures, reduced sickness leave and a more mobile workforce.

As part of the market-testing programme, the National Offender Management Service has set up a Public Sector Bids Unit under a senior Prison Service manager to lead the development of bids on behalf of public sector prisons and to ensure that the public sector is able to submit a strong competitive bid.

Public sector prisons make up around 90 per cent of the prisons estate – two new public sector prisons are planned over the next three years: Isis at Belmarsh and Bure, a former RAF base.

Birmingham and Wellingborough prisons are currently managed by the public sector. Birmingham is a Category B local prison, Wellingborough is a Category C training prison.

Buckley Hall is managed by the public sector while Doncaster is currently managed by Serco. Both prisons have been previously competed and their contracts are approaching expiry. Buckley Hall is a Category C training prison, HMP and YOI Doncaster is a Category B local prison.

A new prison is currently under construction near to Featherstone prison, Wolverhampton and the competition will decide who will manage the prison when it is complete. The name for this prison will be announced in due course, in the meantime it is known as Featherstone 2. It will be a category C prison.