{"id":220669,"date":"2021-06-29T12:26:12","date_gmt":"2021-06-29T12:26:12","guid":{"rendered":"https:\/\/www.thecanary.co\/?p=1448058"},"modified":"2021-06-29T12:26:12","modified_gmt":"2021-06-29T12:26:12","slug":"government-gives-serco-test-and-trace-contract-worth-millions-despite-a-history-of-failure","status":"publish","type":"post","link":"https:\/\/radiofree.asia\/2021\/06\/29\/government-gives-serco-test-and-trace-contract-worth-millions-despite-a-history-of-failure\/","title":{"rendered":"Government gives Serco Test and Trace contract worth millions despite a history of failure"},"content":{"rendered":"<p>Outsourcing giant Serco has won a new contract worth up to \u00a3322m to continue running coronavirus (Covid-19) testing sites for another year.<\/p>\n<p>Bosses said they signed a new deal with the Department of Health and Social Care (DHSC) to operate regional, local, and mobile testing centres in England and Northern Ireland following a competitive tendering process.<\/p>\n<p>The value of the new contract could change significantly due to its flexibility to levels of demand in coming months, they added. The contract is for 12 months with the option of a six month extension.<\/p>\n<p>This is despite Serco&#8217;s involvement in last year&#8217;s Test and Trace system, which was <a href=\"https:\/\/www.thecanary.co\/uk\/news\/2020\/10\/16\/serco-profits-set-to-soar-as-contract-for-broken-test-and-trace-system-is-extended\/\">denounced as<\/a> &#8220;broken&#8221; and &#8216;unfit for purpose&#8217;.<\/p>\n<p><!-- EMBED START PA Quote --><\/p>\n<figure><script async src=\"https:\/\/content-embed.pressassociation.com\/embeds.js\" charset=\"utf-8\"><\/script><\/p>\n<h5>Huge profits<\/h5>\n<\/figure>\n<p><!-- EMBED END PA Quote --><\/p>\n<p>This means Serco will continue operating around 20% of sites across England and Northern Ireland. This includes drive-through and walk-in test centres, alongside mobile sites.<\/p>\n<p>Serco chief executive Rupert Soames, brother of Tory MP Nicholas Soames, said:<\/p>\n<blockquote><p>We are proud of the part we have played in building and operating the UK\u2019s highly successful Covid-19 testing infrastructure.<\/p>\n<p><span style=\"font-size: inherit; color: #000000;\">From a standing start in March 2020, NHS Test &amp; Trace has grown a network of regional, local and mobile sites which have delivered over 18.5 million individual tests, an average of 51,000 tests a day.<\/span><\/p>\n<p><span style=\"font-size: inherit; color: #000000;\">We are delighted that the DHSC has selected us to continue to support them in providing these services for at least the next 12 months.<\/span><\/p><\/blockquote>\n<p>He claimed that the new contract is unlikely to increase profits beyond previous guidance set out earlier this month.<\/p>\n<p>On 14 June, Serco said it expects underlying trading profit to hit \u00a3200m this year. This is \u00a315m more than previously forecast due to the extension of coronavirus restrictions.<\/p>\n<p><!-- EMBED START Image --><\/p>\n<figure id=\"embedded257879026\"><img src=\"https:\/\/image.assets.pressassociation.io\/v2\/image\/production\/ffdfd9f930e534d88e6d66e1694e815dY29udGVudHNlYXJjaGFwaSwxNjI0OTUzMzg0\/2.57879026.jpg?w=640\" sizes=\"(max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 543px, 580px\" srcset=\"https:\/\/image.assets.pressassociation.io\/v2\/image\/production\/ffdfd9f930e534d88e6d66e1694e815dY29udGVudHNlYXJjaGFwaSwxNjI0OTUzMzg0\/2.57879026.jpg?w=320 320w, https:\/\/image.assets.pressassociation.io\/v2\/image\/production\/ffdfd9f930e534d88e6d66e1694e815dY29udGVudHNlYXJjaGFwaSwxNjI0OTUzMzg0\/2.57879026.jpg?w=640 640w, https:\/\/image.assets.pressassociation.io\/v2\/image\/production\/ffdfd9f930e534d88e6d66e1694e815dY29udGVudHNlYXJjaGFwaSwxNjI0OTUzMzg0\/2.57879026.jpg?w=1280 1280w\" alt=\"A test and trace worker\" data-title=\"Serco contract win\" data-copyright-holder=\"PA Wire\" data-copyright-notice=\"PA Wire\/PA Images\" data-credit=\"Peter Byrne\" data-usage-terms=\"\" \/><figcaption>Serco has operated around 20% of Test and Trace centres since the start of the pandemic (Peter Byrne\/PA)<\/figcaption><\/figure>\n<p><!-- EMBED END Image --><\/p>\n<p>Serco has faced criticism over the large profits it&#8217;s made from the pandemic. Its decision to pay dividends to shareholders has also come under scrutiny.<\/p>\n<h5>Criticism<\/h5>\n<p>Labour leader Keir Starmer said in February it was \u201coutrageous\u201d that Serco would reintroduce dividends this year.<\/p>\n<p>He tweeted at the time:<\/p>\n<blockquote><p>Taxpayers\u2019 money shouldn\u2019t be given to Serco\u2019s shareholders via dividends. <span style=\"font-size: inherit; color: #000000;\">The Government should have placed Test and Trace in the hands of our NHS and local communities.<\/span><\/p><\/blockquote>\n<p>But Serco has defended its role, pointing out it repaid previously claimed furlough cash. Serco also highlighted that it shared a \u00a35m bonus among 50,000 frontline workers. Bosses previously revealed they banked \u00a3400m in extra revenues from coronavirus-related services. However, it claimed profits from the pandemic were only \u00a32m.<\/p>\n<h5>Serco&#8217;s history<\/h5>\n<p>The government handing over more contracts to Serco is controversial. Serco was <a href=\"https:\/\/fullfact.org\/health\/Serco-test-and-trace\/\">contracted to manage some regional testing facilities<\/a> and contract tracing sites as part of the Test and Trace programme last year.<\/p>\n<p>Despite a budget of \u00a337bn for Test and Trace, a report by MPs said it had &#8216;<a href=\"https:\/\/www.bbc.co.uk\/news\/health-56340831\">no clear impact<\/a>&#8216;.<\/p>\n<p>According to the National Audit Office (NAO), as of the end of October 2020 Serco had <a href=\"https:\/\/fullfact.org\/health\/test-trace-march-2021\/\">signed contracts worth \u00a3277m<\/a> for Test and Trace operations.<\/p>\n<p>Within that, Serco <a href=\"https:\/\/www.politicshome.com\/news\/article\/exclusive-serco-subcontracted-test-and-trace-work-to-firm-accused-of-meltdown-on-government-call-centre-contract\">awarded a contact tracing role<\/a> to company HGS UK, despite it being criticised for how it handled another government contract.<\/p>\n<p>According to figures from October 2020, Serco and other organisations Test and Trace was outsourced to were <a href=\"https:\/\/www.theguardian.com\/commentisfree\/2020\/oct\/13\/failure-test-trace-folly-huge-contracts-private-giants-uk\">only reaching around 64% of contacts<\/a>. This was much lower than the 97% local public health teams reached.<\/p>\n<h5>Profits in detention<\/h5>\n<p>Serco has also been running <a href=\"https:\/\/www.serco.com\/uk\/sector-expertise\/immigration\/yarls-wood-irc\">Yarl&#8217;s Wood detention centre<\/a> since 2007, which houses adult women and family groups &#8220;awaiting immigration clearance&#8221;.<\/p>\n<p>After visiting the centre in 2018, Green Party leader Caroline Lucas said what she saw was &#8220;<a href=\"https:\/\/www.thecanary.co\/uk\/2018\/06\/16\/caroline-lucas-just-accused-the-government-of-psychological-torture\/\">nothing less than psychological torture<\/a>&#8220;.<\/p>\n<p>Investigations of the centre found staff referring to people detained indefinitely there as \u201canimals\u201d, \u201cbeasties\u201d, and \u201cbitches\u201d. Residents have also gone on hunger strike in protest of the centre&#8217;s conditions.<\/p>\n<p>Detainees made <a href=\"https:\/\/www.bbc.co.uk\/news\/uk-england-beds-bucks-herts-36804714\">six allegations of sexual assault<\/a> over a three-year period. At the time, Serco said there had been no proven incidents of sexual assault at Yarl&#8217;s Wood.<\/p>\n<h5>Failure to hit targets<\/h5>\n<p>After the announcement that the government would give Serco the new contract, Labour MP Dawn Butler <a href=\"https:\/\/twitter.com\/DawnButlerBrent\/status\/1409432627480825857\">said<\/a>:<\/p>\n<blockquote><p>Serco failed to hit any previous targets from covid contracts. Why on earth would they be given this lucrative contract?<\/p>\n<p>Serco are a big part of the reason why test and trace failed!<\/p><\/blockquote>\n<p>Only four days ago, the <a href=\"https:\/\/www.reuters.com\/world\/uk\/uks-covid-19-test-and-trace-system-still-missing-targets-watchdog-2021-06-24\/\">NAO said the UK Test and Trace system<\/a> is still missing targets. Handing a new contract worth millions to Serco leaves the government with serious questions to answer.<\/p>\n<p><em>Additional reporting by PA. Featured image via PA.<\/em><\/p>\n<p>By <a rel=\"nofollow\" href=\"https:\/\/www.thecanary.co\/author\/thecanary\/\">The Canary<\/a><\/p>\n\n<p class=\"syndicated-attribution\">This post was originally published on <a href=\"https:\/\/www.thecanary.co\/uk\/analysis\/2021\/06\/29\/government-gives-serco-test-and-trace-contract-worth-millions-despite-a-history-of-failure\/\">The Canary<\/a>. <\/p>","protected":false},"excerpt":{"rendered":"<p>The outsourcer will continue running around 20% of test and trace centres in England and Northern Ireland for the next 12 months.<\/p>\n<p>By <a rel=\"nofollow\" href=\"https:\/\/www.thecanary.co\/author\/thecanary\/\">The Canary<\/a><\/p>\n","protected":false},"author":1541,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[441,30882,3331,30883,1731,12584,1395],"tags":[],"_links":{"self":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/220669"}],"collection":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/users\/1541"}],"replies":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/comments?post=220669"}],"version-history":[{"count":2,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/220669\/revisions"}],"predecessor-version":[{"id":220841,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/220669\/revisions\/220841"}],"wp:attachment":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/media?parent=220669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/categories?post=220669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/tags?post=220669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}