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Prisons: Private Sector

Justice written question – answered on 18th July 2013.

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Photo of Sadiq Khan Sadiq Khan Shadow Minister (London), Shadow Lord Chancellor and Shadow Secretary of State for Justice, Shadow Lord Chancellor and Shadow Secretary of State for Justice

To ask the Secretary of State for Justice how much was paid to private contractors for running each privately run prison in (a) 2010-11, (b) 2011-12 and (c) 2012-13; and how much is budgeted to be spent in (i) 2013-14 and (ii) 2014-15.

Photo of Jeremy Wright Jeremy Wright The Parliamentary Under-Secretary of State for Justice

The following table shows expenditure incurred with private contractors for each privately managed prison in each financial year 2010-11 to 2012-13, and the budgeted amounts for 2013-14 as at June 2013. The budgets for 2014-15 are not yet available. Budget allocations will be set as part of the Departments regular annual budget allocation process. Allocations will be made on the basis of need and according to departmental priorities.

£ million
  Out-turn Budget
  2010-11 2011-12 2012-13 2013-14
Private finance initiative prisons        
Altcourse 47.596 47.213 47.488 46.960
Ashfield 25.015 26.285 27.529 28.713
Bronzefield 26.490 27.925 29.168 30.486
Dovegate 36.670 38.065 39.402 40.539
Forest Bank 35.572 35.467 36.510 38.093
Lowdham Grange 25.758 26.558 27.972 28.899
Parc 47.946 58.526 59.628 57.517
Peterborough 32.866 33.118 33.776 34.880
Rye Hill 17.944 18.845 19.322 20.610
Thameside n/a 0.143 27.505 30.806
Contracted managed prisons        
Birmingham n/a 14.148 28.812 29.139
Doncaster 22.527 19.983 18.547 17.125
Oakwood n/a n/a 23.631 18.049
Wolds 9.104 8.662 8.789 2.323
Total 327.489 354.938 428.078 424.138
Notes: 1. Altcourse—96 additional prisoner places (APPs) deactivated in December 2012 and a further 75 APPs deactivated in April 2013. 2. Parc—new houseblock opened in 2010; deactivation of 138 APPs in April 2013. 3. Thameside became operational on 27 March 2012. 4. Birmingham transferred to private sector management on 1 October 2011. 5. Doncaster contract re-competed with revised pricing effective from 1 October 2011. 6. Oakwood became operational on 24 April 2012; expenditure in 2012-13 included £7.2 million of initial set-up costs. 7. Wolds transferred to public sector management on 1 July 2013.

Expenditure for each prison between years will vary due to a number of factors, including inflation uplift, contract variations, new prisons becoming operational or prisons transferring between the public and private sector, and additional prison places being commissioned or decommissioned.

Expenditure for some prisons will include substance misuse costs which are recharged to the Department of Health from 2011-12. Not all running costs are met by the private contractors, some costs are met directly by the Department.

For prisons run under the private finance initiative (PFI) scheme, the expenditure includes the annual instalment for the repayment of the capital cost of the prison building (and related interest payments), as well as the running cost.

The Government is committed to driving down unit costs in prisons through replacing old and uneconomic accommodation with new modern and cost-effective places within the public sector and private prison estate.

Annual resource expenditure for individual public sector and private prisons is published each year alongside the management information addendums to the NOMS annual report and accounts.

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