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Rod Aldridge, executive chairperson of Capita, talks a lot about making the case for change in the running of public services. But when it comes to the private sector running public services he asks: "Why do we still have to make the case for change?"

Perhaps, in Capita's case, the problems the Criminal Records Bureau has experienced in its first year of operation is reason enough. The CRB, which Capita runs on behalf of the Home Office under a £400m, 10-year contract, has been dogged by delays to police checks on professionals working with children and vulnerable adults.


The figures for CRB's first year performance make uncomfortable reading for both Capita and the government. Just 19.4 per cent of standard checks, or disclosures, were completed within one week (target 95 per cent) and 52.4 per cent of enhanced disclosures were completed in three weeks (90 per cent target).

Aldridge says the "key" to performance in public services is "honesty". He admits mistakes were made and "regrets the disruption the backlog caused". But, he says, it is not all Capita's fault, arguing that it only handles each "application for five days of the three weeks it takes to process".

There was also the government's decision to insist on a paper-based process at the last minute, for which Capita was paid an additional £19m. As Capita's original bid had been based on an electronic system, this required a total redesign of the service.

Despite this, Capita's role in the debacle was reflected in the government fining it £1.8m in May. However, Aldridge says the problems have been addressed to the point where today 99 per cent of disclosures are taking less than three weeks to complete.

It is not likely to be enough and there seem to be more changes ahead. The first indication of this was last month when, out of the blue, the CRB substantially increased its fees for processing disclosures.

From this month, the cost of standard disclosures will double from £12 to £24 and enhanced disclosures will rise from £13 to £29. The move has been slammed by virtually everyone.

CRB managing director John O'Brien says the rise is needed to balance the agency's books - it was making a loss on each disclosure.

It was envisaged at the start of the CRB that it would be self-funding, but after a year's operation the current level of income is not covering the operational cost, O'Brien explains. In keeping with the chaotic nature of the planning of the service, he says the initial fees were based on the best information available at the time.

"This was a big green field project - there is no other central checking agency of this type in Europe - and it had to be built from scratch," he adds.

This cuts little ice with service users. Justifiably they ask why they are expected to pay more for a service that performed so badly - there are still thousands of checks outstanding from last year. Under Aldridge's mantra of services being judged on performance, should not the cost be coming down?

The lack of consultation over the fees hike has angered everyone. "The first we knew of it was when we received a letter from the CRB informing us," says Jan Cosgrove, national organiser of charity Fair Play for Children.

The CRB claims that its problems have been compounded by 40 per cent of forms needing to be returned because they were incorrectly filled in, but Cosgrove says some of the forms he has sent have gone astray within the CRB system. The fact that the increase has been introduced with no warning and in the middle of the financial year will cause havoc with organisation's budgets and make it difficult for the private sector, such as care home providers, to pass on costs to their customers.

Sir Jeremy Beecham, chairperson of the Local Government Association, said the decision would add £15m a year to council budgets, and is calling for a delay until next April. "If the economics mean that charges have to be increased, then we need the decision deferred so that it can be built into the financial planning cycle and take account of budgets for next year."

The LGA has held discussions with the Home Office, but realistically the most likely concession it will get is for any future increases to be consulted on first. The voluntary sector is going to feel the impact more than most because "they don't have customers to pass costs onto", says Susanne Rauprich, chief executive of the National Council of Voluntary Youth Services.


"Charities that have set their budgets for the financial year will now have to spend more than twice what they expected and, at worst, this could mean cutting back on services," she adds.

Disability charity Leonard Cheshire has hundreds of existing staff it needs to have checked in the next few months. "It will cost us tens of thousands of pounds and leave enormous holes," says Judy Douch, personnel manager.

Last year, Barnardo's spent about £45,000 on enhanced checks. If it applies for the same number this year the bill will rise to £95,000.

"It is a surprise that the unsatisfactory service the CRB provides has not been addressed before the increases in costs were introduced. The system is time-intensive andÉmany checks are duplicated unnecessarily, clogging the system and adding to costs," says Chris Hanvey, UK director of operations.

For those that have to go through umbrella bodies to apply for a disclosure the costs will also increase. The YMCA says it will pass on the increase to parents participating in holiday play schemes, while a number of companies that handle checks said their fees would also rise from July, some up to £60 for an enhanced disclosure.

The independent panel set up by the government to review the CRB has recommended restricting the number of registered bodies to those organisations that apply for more than 200 disclosures a year because of their varying quality and the difficulty some face in finding one near them. However, analysis of responses to these proposals published last month showed that fewer than one in four were in favour of this because it could increase costs and bureaucracy. There are also concerns over sharing sensitive information with a third party.

Rauprich says quality is not necessarily linked to volume, but believes one possibility worth looking at is for local authorities to take on the role.

Stuart Etherington, chief executive of the National Council for Voluntary Organisations, says if this was to happen a large number of voluntary organisations currently registered would have to de-register and use umbrella bodies, increasing their costs further.

One thing that seems almost certain is that the CRB will set up an electronic applications system, mainly because Capita sees this as integral to the agency's future.

The analysis of the independent review responses showed that three-quarters supported electronic applications but only if there were no further increases in fees. The CRB's O'Brien admits it is looking at electronic submissions but refused to rule out further price increases.

The Employers' Organisation is keen to pursue the idea, but charities are less enthusiastic. "It is impractical and expensive," says Douch. "It's easier for the CRB and a way of solving their problems, but it's not about the user."

Cosgrove agrees, "Some of the electronic systems are extremely expensive. If you want to cripple people like us then that's the way to do it."

The government is negotiating with Capita over the framework of the CRB contract. The sums were wrong in the first place and changes are certain. Its future success will depend on whether those changes are enough to justify the recent fee increases and any future ones.