To ask the Secretary of State for Justice
(1) if he will place a limit on the number of the community rehabilitation companies that a single external provider may control; and if he will make a statement;
(2) when he expects to transfer (a) the first and (b) the last community rehabilitation company to an external provider.
The Transforming Rehabilitation programme is opening up the market to a diverse range of new providers, so that we can harness the best that the private and voluntary sectors has to offer to reduce reoffending. In mid December 2013, the bidders who passed the first stage of the competition to bid for the rehabilitation contracts were announced. The list includes a mix of private and voluntary sector partnerships with more than 50 organisations represented. We expect to announce the winners of these contracts by the end of 2014 and are committed to the roll out of payment by results by 2015.
The Government have been clear that we want to see a diverse market delivering probation services, rather than being dominated by just a few providers. We have set a market share restriction whereby bidders can win a maximum of 25% of market share based on the indicative contract values set out in the competition documentation. Bidders will be allowed to win multiple contracts up to the point at which their market share cap would be breached subject to meeting any other requirements set out by the authority.