Committee publication · Correspondence · 6 July 2026
Letter from the Chief Executive Officer, HM Prisons and Probation Service at the Ministry of Justice relating to Ministry of Justice - Accounting Officer Assessment, 30 June 2026
Summary
The Chief Executive of HM Prison and Probation Service responds to the Public Accounts Committee regarding Accounting Officer Assessments for two Ministry of Justice projects: the Secure Children's Home (SCH) project and the PFI Expiry and Transfer Programme. The letter confirms the SCH project closed in April 2026 having met three of four intended outcomes, securing seven-year contracts for accommodation for up to 94 vulnerable children. It also explains delays in PFI competitions at HMP Rye Hill and HMP Forest Bank, attributing them to quality concerns and legal risks respectively, and confirms extensions were negotiated on a no better/no worse basis.
Key findings
- SCH project achieved three of four stated outcomes by December 2025: recommissioning beds within agreed range, acquiring child-first services, and ensuring safety prioritisation. Geographic expansion in London and South East remained unmet due to budget constraints.
- Seven-year SCH contracts secure accommodation for up to 94 children aged 10-17 nationally across Local Authority operated homes in England and Wales, providing residential care, education, and healthcare.
- HMP Rye Hill operator competition cancelled in April 2025 after two bidders failed to meet quality thresholds for resourcing; re-run launched June 2026 following three-year contract extension.
- HMP Forest Bank award withdrawn during standstill period over bid page-limit compliance issue; successful challenge by unsuccessful bidder delayed contract entry; extended six months twice to maintain service continuity.
- PFI contract extensions negotiated on no better/no worse basis, minimising additional costs but delaying realisation of expected future benefits rather than incurring material extra expenditure.
Tone
ProceduralTopics
Key actors
James McEwen, Sir Geoffrey Clifton-Brown, Jo Farrar, HM Prison and Probation Service, Ministry of Justice, Department for Education, NHS England, Ofsted
Notable line
“In both instances, extending the existing PFI contracts was the most prudent course of action to ensure continuity, safety, and stability across the prison estate.”
Key Quotes
“The primary purpose of the Secure Children's Home project was to retain the availability of high-quality, secure accommodation for some of the most vulnerable children we have in custody …”
“… while contracts have been signed, which secure the MoJ as many accommodation places as possible with the budget available, we have not been able to expand the geographical spread of homes in London or the South East of England where demand is often highest.”
“The operator competition launched in May 2024 but was cancelled in April 2025 as bidders failed to submit compliant bids and achieve the required quality threshold for a critical aspect of the competition.”
“The extensions were agreed on a no better/no worse basis, meaning the Department only incurred minimal enabling costs as a result of the extension arrangements.”
“Although the delays are regrettable, they were driven by the need to safeguard operational quality (Rye Hill) and manage legal and mobilisation risks”
Source · parliament.uk record ↗