Executive Summary

According to the Prison Board, Her Majesty's Prison Service serves the public by keeping in custody those committed by the courts. On 1st April 1993, the Prison Service became an executive agency of the Home Office, with increased autonomy including responsibility for the day-to-day management of the service. The Director reports to the Home Secretary, who has set out a number of clearly defined targets, focusing on service delivery.

In 1993/1994 there were an estimated 47,400 people detained in prison in England and Wales, representing one of the highest prison populations in Europe. There are a total of 137 prisons in England and Wales; 28% of which are local prisons and remand centres, 32% are training prisons, and 16% are for young offenders. The Prison Service employed 37,650 people in 1993, of which 35,600 were based at establishments.The UK Government expenditure on the Prison Service totalled nearly £1.7bn in 1993, more than double that of 1983. Operating costs of prison establishments amounted to £1.1bn in 1993, the majority of which were accounted for by prisoner control.

The Government is actively implementing a programme of contracting out the management of prisons and other services to the private sector as part of its aim to increase the efficiency of the Prison Service, introducing competition and a comparison for directly managed establishments. Prison Service statistics indicate that the cost per prisoner per week in contracted-out establishments was above the average for all establishments, but compared fairly well with the equivalent category of prison. Potential bidders for Prison Service contracts are required to meet certain government standards of financial status, sector experience and quality control criteria. Currently, four prisons have been contracted out; Wolds, Blakenhurst, Doncaster and Manchester's Strangeways, although an in-house team was awarded the latter's contract. Court custody and escort services have also been put to tender, the country being divided into ten regions. As at April 1994 contracts had been awarded for East Midlands and Humberside, and the Metropolitan Police District, with a further three contracts being offered for tender in 1994/1995.

There are five main contenders for the contracts to design, build and run prisons in the UK. These are Group 4 Securitas, UK Detention Services, Premier Prison Services, Securicor Custodial Services and ManCare Ltd. Group 4 has been the trail blazer in the contracting out of prison services, being awarded the first contract to manage Wolds prison.

Additional areas which are being supplied by external companies include catering, cleaning, educational services and health services. The private sector has also acquired an increasing role in the Prison Service work programme, purchasing goods and services from the prisons, subcontracting work to prison employees and directly employing prisoners on a contract basis.

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