Departmental Overview, October 2018

Ministry of Justice If you would like to know more about the National Audit Office’s (NAO’s) CONTENTS Ministry of Justice This overview summarises the work of the Ministry of Justice including what it work on the Ministry of Justice, (the Ministry) does, how much it spends, recent and planned changes, and what to look out for please contact: across its main business areas and services. Oliver Lodge Director, Value for Money Audit [email protected] Contents and Bookmarks 020 7798 7827 Over- Overviewview About the Ministry of Justice Steven Corbishley How the Ministry is structured Director, Financial Audit Where the Ministry spent its money in 2017-18 [email protected] Major programmes and developments Exiting the European Union 020 7798 7619 Managing public money

Part One If you are interested in the NAO’s The Ministry is managing a range of cost pressures work and support for Parliament more

Part Two About the Ministry of Justice How the Ministry Where the Ministry widely, please contact: Services are under strain – Prisons is structured spends its money Services are under strain – Probation [email protected]

Part Three 020 7798 7665 Financial sustainability depends on successfully delivering challenging reforms

Part Four What to look out for

Major programmes Exiting the Managing public money and developments European Union The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer of the House of Commons and leads the NAO. The C&AG certifies the PART ONE PART TWO PART THREE PART FOUR accounts of all government departments and many other public sector bodies. He has statutory authority The Ministry is Services are Financial sustainability What to look out for to examine and report to Parliament on whether departments and the bodies they fund, nationally managing a range of under strain depends on and locally, have used their resources efficiently, cost pressures successfully delivering effectively, and with economy. The C&AG does this through a range of outputs including value-for-money challenging reforms reports on matters of public interest; investigations to establish the underlying facts in circumstances where

concerns have been raised by others or observed Ministry of Justice through our wider work; landscape reviews to aid | transparency; and good‑practice guides. Our work ensures that those responsible for the use of public money are held to account and helps government to improve public services, leading to audited savings of £741 million in 2017.

Design & Production by NAO External Relations DP Ref: 005164-001 Departmental Overview 2018

© National Audit Office 2018 2 OVERVIEW CONTENTS About the Ministry of Justice The Ministry of Justice (the Ministry) is a ministerial department supported by 37 public bodies. It is responsible for the following areas of the criminal, civil and family justice systems in England and Wales provide: courts and tribunals (administered in partnership with the independent judiciary); prisons;The Ministry of Justice The Ministry set out four strategic objectives in its 2018-19 Single Departmental Plan probation; and services(the Ministry) to help victims of crime, is children, a ministerial vulnerable people and those seeking access to justice,department including legal aid. supported by This diagram37 public shows how bodies. the Ministry set out four strategic objectives in its 2018-19 Single Departmental Plan. It alsoIt shows is responsiblethe Ministry’s performance for against the these following objectives. areas of the criminal, civil and family justice systems in England and Wales provide:

• courts and tribunals Provide a prison and Deliver a modern Promote a global Transform the Ministry (administered in partnership probation service that courts and Britain and the rule with the independent judiciary); reforms offenders justice system of law

• prisons; To measure its performance against these objectives, the Ministry has chosen the following sub-objectives • probation; and • services to help victims of Get the basics right Provide a fair and effective Ensure growth and Maintain a continued crime, children, vulnerable in prisons justice system readiness for leaving tight grip on people and those seeking the European Union departmental finances access to justice, including legal aid. Ensure a sustainable Improve experience of Maintain a domestic Ensure a positive and prison population victims of crime within the human rights framework engaged workforce criminal justice system that builds on our longstanding tradition of rights and liberties

Tackle re-offending Champion our Drive efficiencies and

through a cross- world‑class judiciary a better service Ministry of Justice | government approach

Support better outcomes for children, families and vulnerable adults Departmental Overview 2018

3 OVERVIEW CONTENTS How the Ministry is structured

The Ministry delivers its objectives • HM Prison & Probation Service • The Criminal Injuries Compensation • The Parole Board, which is an through a number of public bodies (previously NOMS), which carries Authority, which deals with independent body that carries out covering criminal, civil and family out sentences given by the courts, compensation claims from people risk assessments on prisoners to justice systems in England and in custody and the community, and who have been physically or mentally determine whether they can be safely Wales, notably: rehabilitates people in its care through injured because they were the released into the community. • HM Courts & , which education and employment. victim of a violent crime in England, Scotland or Wales. • The Children and Family Court is responsible for the administration • The Youth Justice Board, which Advisory and Support Service, of criminal, civil and family courts and oversees the youth justice system in • The , which funds which represents children in family tribunals in England and Wales and England and Wales. civil and criminal legal aid and advice court cases in England. This body is non-devolved tribunals in Scotland. in England and Wales. independent of the courts.

This flow diagram shows how the Ministry of Justice works with a number of other government bodies across the criminal justice system in England and Wales. The Ministry of Justice works with a number of other government bodies across the criminal justice system in England and Wales

Offence/arrest Charge and prosecution Trial and hearing Sentencing Post‑sentencing

Home Office Attorney General’s Office Ministry of Justice

40 Police and Crime Crown Prosecution Service HM Courts & HM Prison & Youth Justice Criminal Injuries Commissioners1 Tribunals Service Probation Service Board Compensation Authority

43 Police Forces Serious Fraud Office Magistrates’ Crown Prisons Probation Courts Courts

National Crime Agency Legal Aid Agency Youth National 21 Community Custody Probation Rehabilitation

Services Service Companies Ministry of Justice |

Stage of the process Home Office and related parties Attorney General’s Office and related parties Ministry of Justice and related parties

Notes 1 Greater Manchester Police, Metropolitan Police and the City of London Police do not have Police and Crime Commissioners. In these areas, Mayors and Metro Mayors have authority over the police. 2 A separate Departmental Overview is available on the Home Offi ce. Departmental Overview 2018 Source: National Audit Offi ce 4 OVERVIEW CONTENTS Where the Ministry spends its money

This diagram shows that the Ministry’s total operating expenditure in 2017-18 was £10 billion, Thewith incomeMinistry’s of £1.9 billion total reducing operating the final net public expenditure to £8.1 billion. expenditure in 2017-18 was £10 billion, with income of £1.9 billion reducing the final net public expenditure Levy Income – £14m Legal Services HM Prison & Probation to £8.1 billion. Board and Office for Service – £4,140m Legal Complaints Income – £263m (net) – £3m

Judicial Appointments Commission (net) – £5m

Criminal Cases Review Commission (net) – £6m Legal Aid Agency – Total Ministry of Justice £1,873m Office for Legal Complaints gross expenditure Total Ministry expenditure Income – £175m (net) – £13m £10bn Income Central services expenditure Parole Board (net) – Public bodies expenditure £17m Executive non-departmental public bodies expenditure Office of the Public Income Other expenditure Guardian – £55m HM Courts & £1,871m Tribunals Service – Income – £65m £1,778m Notes 1 Figures include spending in Departmental Income – £134m Expenditure Limits (DEL) and Annually Youth Justice Board Managed Expenditure (AME), voted (net) – £106m and non-voted, for resource and capital spending. 2 The Ministry receives income from a Children and Family Court combination of fees (for example, for Advisory and Support courts processing divorce or probate Service (net) – £130m Policy, Corporate Services Ministry of Justice

claims), fi nes and recoveries from other | and Associated Offices – government departments. Higher Judiciary £1,482m 3 The Ministry also received levy income of Judicial Salaries – £14 million in relation to the Legal Services Criminal Injuries £148m Income – £1,201 Board and the Offi ce for Legal Complaints. Compensation 4 The individual accounts of each organisation Authority – £201m will not reconcile to the fi gures shown here due to adjustments made in consolidating Income – £18m the group account. Departmental Overview 2018 Source: Ministry of Justice, Annual Report and Accounts 2017-18, Session 2017-18, July 2018. Analysis of net resource and net capital outturn by section 5 OVERVIEW CONTENTS Major programmes and developments

The Ministry is managing a number of major programmes including: Red-Amber-Green ratings and life-time value of the 1 Ministry’s projects by the Infrastructure and Projects The Prison Authority, September 2017 Estate Trans- The Infrastructure and Projects Authority provides Delivery Confidence The Prison Estate Transformation forma- The Electronic Monitoring Programme, Assessment for all projects on the Government Major Projects Programme, which plans to provide up to tion which seeks to design and implement a new Portfolio (GMPP). This is an evaluation of each project’s likelihood of Pro- 10,000 new prison places by reconfiguring the electronic monitoring system and service to achieving its aims and objectives on time and on budget. It refers to a fixed point in time, using a five-point scale: Red, Amber-Red, Amber, existing custodial estate and constructing a monitor subjects wearing the devices. Whole‑life Amber-Green and Green. The Ministry’s 11 projects on the GMPP as number of new prisons and smaller houseblock costs are £581 million. at September 2017 were noted as follows: units within existing prisons. Whole-life costs Number of projects The lifetime value of the are not yet available because the programme is in each category projects in each category (£m) awaiting approval by HM Treasury. Green – gramme, which plans to provide up to 10,000 new prison places by reconfiguring the existing custodial estate and constructing a number of new prisons and smaller houseblock units within 0 0 existing prisons. Whole-life costs are not yet available because the programme is awaiting approval by HM Treasury.

2 Amber-Green The Elec- HM Courts & Tribunals Service Reform tronic Probation programme, introduced in 2 £2,668m Moni- Portfolio, with whole-life costs of £1.6 billion, toring December 2017 to structure commercial Pro- is about modernising infrastructure and negotiations on the early termination of Amber providing a flexible, modern service to court Community Rehabilitation Companies contracts users, thereby increasing efficiency and and to develop options for the future of 4 £3,562m improving service quality. probation services. Amber-Red

gramme, which seeks to design and implement a new electronic monitoring system and service to monitor subjects wearing the devices. Whole‑life costs are £581 million. 5 £2,731m 3 HM Courts & Tribunals Service Reform Portfolio, with whole-life costs of £1.6 billion, is about modernising infrastructure and providing a flexible, modern service to court users, thereby increas- ingOrganisational efficiency and improving service quality. change or structural reform within the Ministry Red 4 • Creation of HM Prison & Probation Service (HMPPS) in April 2017 with full responsibility for – Probation programme, introduced in December 2017 to structure commercial negotiations on the early termination of Community Rehabilitation Companies contracts and to develop options for 0 the future ofthe probation operational services. management of offenders in custody and the community, including the youth Ministry of Justice

custodial estate. | Organisational change or structural reform within the Ministry. 9 of the 11 projects £6 billion (67%) of the Creation• ofRestructuring HM Prison & Probation Service of the (HMPPS) Youth in April Justice2017 with full Boardresponsibility to for transferthe operational responsibilitymanagement of offenders for in custody the andyouth the community, custodial includ- are rated Amber or £9 billion in whole-life ing the youth custodial estate. estate into HMPPS and responsibility for commissioning into the Ministry. Amber-Red costs of the projects Restructuring of the Youth Justice Board to transfer responsibility for the youth custodial estate into HMPPS and responsibility for commissioning into the Ministry. is rated Amber or Amber-Red Creation of a new government-owned facilities management company, which started Creation• of a new government-owned facilities management company, which started operating in February 2018, to support the provision of facilities management and maintenanceoperating services to prisons in followingFebruary the collapse 2018, of Carillion to insupport the same month. the provision of facilities management and Source: Ministry of Justice, Ministry of Justice Government Major Projects

maintenance services to prisons following the collapse of Carillion in the same month. Departmental Overview 2018 This diagram shows red-amber-green ratings and life-time value of theMinistry’s projects by the Infrastructure and ProjectsAuthority, September 2017. Portfolio data, 2017, July 2018

6 OVERVIEW CONTENTS Exiting the European Union In March 2019 the United Kingdom is set to leave the European Union (EU). The UK government has instructed departments to make the necessary arrangements for EU Exit.

The Ministry’s main priorities for EU Exit set out in its Single Departmental Plan are to: ensureIn that March English law 2019and courts remainthe aUnited primary choice Kingdom for international is businesses; set to leave the European Union (EU). The UK The Justice Select Committee promote UK legal services abroad, including through the GREAT campaign; delivergovernment the best outcome from has EU Exit instructednegotiations – for citizens, departments families, businesses to and makethe the necessary arrangements for EU Exit. described the main EU Exit legal profession – and prepare for the UK’s independent trade policy and negotiations; challenges faced by the prepare the justice system for EU Exit; and foster innovation in the justice system, backing the UK to compete globally in taking the lead on cutting-edge opportunities. Ministry as: Workstreams continuing cooperation on In April 2018, the Department for Exiting the EU provided a summary of the workstreams underway to implement exit from the EU. • This stated that the Ministry has nine active workstreams relating to policies affected by leaving the EU. These cover understanding the impacts of EU Exit on the workload of courts and tribunals, criminal justice as closely fundamentalThe rightsMinistry’s issues related to main EU Exit and priorities legal services market for access EU post-EU Exit Exit. set out in its Single Departmental Plan are to: It also includes the future civil judicial cooperation with the EU to enable clear rules on the handling of cross-border disputes in civil, commercial, insolvency and family law matters. as possible; The government• ensure stated that that the Ministry English has developed law deliveryand planscourts for a range remain of negotiated a primaryand contingency choice outcomes andfor is internationalworking closely with other businesses; government departments where there are issues with significant cross-cutting interest, for example with the Home Office on criminal justice cooperation and with the Department for Business, Energy & Industrial Strategy on mutual recogni- • maintaining access to EU tion of qualifications. • promote UK legal services abroad, including through the GREAT campaign; regulations on inter‑state Funding commercial law in order to In March 2018,deliver HM Treasury the allocated best £17.3 million outcome to the Ministryfrom for EU exiting Exit the EU. negotiations – for citizens, families, businesses and the • protect the UK as a top-class The Justice Selectlegal Committee profession described the – main and EU Exit prepare challenges facedfor bythe the MinistryUK’s as: independent trade policy and negotiations; continuing cooperation on criminal justice as closely as possible; commercial law centre; maintaining accessprepare to EU regulations the justice on inter‑state system commercial for EU law in order Exit; to protect and the UK as a top-class commercial law centre; enabling• cross-border legal practice rights and opportunities while working to secure an effective post‑exit framework with the EU for resolving cross‑border commercial, civil and family disputes; and enabling cross-border retaining efficient mechanisms to resolve family law cases involving EU member states and the UK with mutual recognition and enforcement in family law that can be crucial in, for example, resolving • child •abduction foster cases with innovation appropriate haste. in the justice system, backing the UK to compete globally in taking the lead on cutting-edge opportunities. legal practice rights and opportunities while working to secure an effective post‑exit framework with the EU for resolving cross‑border Workstreams Funding commercial, civil and In April 2018, the Department for Exiting the EU provided a summary of the workstreams In March 2018, family disputes; and underway to implement exit from the EU. HM Treasury retaining efficient allocated • This stated that the Ministry has nine active workstreams relating to policies affected by leaving the EU. mechanisms to resolve £17.3 million These cover understanding the impacts of EU Exit on the workload of courts and tribunals, fundamental family law cases involving to the Ministry rights issues related to EU Exit and legal services market access post-EU Exit. EU member states and the for exiting UK with mutual recognition the EU. It also includes the future civil judicial cooperation with the EU to enable clear rules on the handling of and enforcement in family cross-border disputes in civil, commercial, insolvency and family law matters.

law that can be crucial Ministry of Justice | The government stated that the Ministry has developed delivery plans for a range of negotiated in, for example, resolving and contingency outcomes and is working closely with other government departments where there child abduction cases with are issues with significant cross-cutting interest, for example with the Home Office on criminal appropriate haste. justice cooperation and with the Department for Business, Energy & Industrial Strategy on mutual recognition of qualifications. Departmental Overview 2018

7 OVERVIEW CONTENTS Managing public money

The Ministry set a target to reduce its spending by around 15% to meet its Spending Review 2015 target by 2019-20. Total departmental expenditure, compared with the Spending Review 2015 estimate, to 2019-20 TheThe Ministry Ministry stated that the set Spending a target Review 2015 to was reduce based on better managing demand and being able to raise more revenue through charging for services. Both of which have been challengingTo fortal the departmental Ministry. expenditure (£ billions) Much ofits spending increase by since around 2015-16 covers 15% spending to on major reform programmes including courts, prisons and probation, which are expected to lead to significant savings. 8.0 meet its Spending Review 2015 2017-18 The Ministry is Thistarget graph shows by total 2019-20. departmental expenditure, compared with the Spending Review 2015 estimate, to 7.5 actual spending £1.5 billion above 2019-20. 7.0 7.3 6.9 7.2 7.2 meeting the 6.5 7.0 target set in 2015 6.5 6.0 Spending to reduce its 6.0 Review 2015 expenditure by spending target £500 million by 5.0 2019-2020.

4.0

3.0

2.0

The Ministry stated that 1.0 the Spending Review 2015 was based on 0 better managing 2015-16 2016-17 2017-182018-19 2019-20

demand and being able to raise Spending Review 2015 departmental expenditure more revenue through charging for Total actual departmental expenditure1,2 services. Both of which have been Planned departmental expenditure1,2 challenging for the Ministry. Much of spending increase since Notes 2015-16 covers spending on major 1 Total departmental expenditure in this figure is defined as expenditure falling under the Ministry's departmental expenditure limits. 2 Figures have been adjusted to allow for depreciation to reflect presentation of figures in the Spending Review. reform programmes including courts, prisons and probation, Source: National Audit Office analysis of Ministry of Justice Annual Report and Accounts 2017-18 and Ministry of Justice’s settlement at the Spending Review 2015 which are expected to lead to

significant savings. Ministry of Justice | Departmental Overview 2018

8 PART ONE CONTENTS The Ministry is managing a range of cost pressures

This chart shows the scale of net spending changes.

1 ScaleUnplanned of financial net pressuresspending changes (£m) Cost pressures have been building A maximum future potential repayment of £126.2 million resulting from an overcharging of fees. The Ministry launched three refund schemes in in the prison estate resulting in a 2017-18: Employment Tribunal and Employment Appeal2011‑12 Tribunal with aspend potential repayment2017‑18 of £25.7 million; spend Change Change Ministry of Justice total spend maintenance backlog Local Authorities for Council Tax Liability orders with a potential repayment of £18.4 million; and (£m) (£m) (£m) (%) The Office of the Public Guardian with a potential repayment of £82.1 million. 2011-122017-18 £64 million paid by the Ministry to fund additional payments to Community Rehabilitation Companies (CRCs) Investigation into changes to Community There are growing maintenance backlogs in critical areas of the estate. HM Prison & RehabilitationHM Prison contracts & (2017). 3,937 3,877 -60 -2 £29 million to fund a pay uplift for all public sector prison staff announced in September 2017. Probation Service estimated it had a maintenance Probation Service In response to these and other cost pressures, the Ministry has transferred £235 million from planned capital spending, including money approved to backlog of around £860 million in the prison build new prisons, to fill gaps in resource spending in 2017-18. In September 2018, the Ministry also announced that it would no longer be funding the Transforming Compliance and Enforcement Programme, which was intended to upgrade systems in HMCTS’s compliance and enforcement estate. The Ministry spent £412 million on serviceHM Courtsused to enforce & Tribunals court orders such as penalties1,763 and compensation. 1,643 -119 -7 maintenance in 2017-18. Service (HMCTS) This graph shows that cost pressures have been building in the prison estate resulting in a maintenance backlog. £9,985m£8,087m £ million Legal Aid Agency 2,450 1,699 -751 -31 1,400 Change

Notes -£1,898m 1,200 1 2011-12 spend adjusted to 2017-18 prices. -19% 2 Ministry total net spend = Departmental Group net operating expenditure. 1,000 3 To allow a comparison between HMCTS spending in 2011-12 and 2017-18, fee income in 2011-12 has been excluded to refl ect the move of this income to the Ministry total in 2017-18. The Ministry total spend is not affected 860 by this adjustment. 800

Source: National Audit Offi ce analysis of HM Prison & Probation Service, HM Courts & Tribunals Service and Legal Aid AgencyAnnual Reports and Accounts 600

400 Unplanned financial pressures • The Office of the Public Guardian In response to these and other cost with a potential repayment of pressures, the Ministry has transferred A maximum future potential 200 412 £82.1 million. £235 million from planned capital repayment of £126.2 million resulting spending, including money approved from an overcharging of fees. £64 million paid by the Ministry 0 to build new prisons, to fill gaps in 2017-18 The Ministry launched three refund to fund additional payments resource spending in 2017-18. In schemes in 2017-18: to Community Rehabilitation September 2018, the Ministry also Maintenance backlog Companies (CRCs) Investigation into Maintenance spend Employment Tribunal and announced that it would no longer be • changes to Community Rehabilitation Employment Appeal Tribunal with a funding the Transforming Compliance Source: National Audit Office analysis of HM Prison Ministry of Justice contracts (2017). | potential repayment of £25.7 million; and Enforcement Programme, which & Probation Service and evidence to the Justice Select Committee £29 million to fund a pay uplift for all was intended to upgrade systems in Local Authorities for Council Tax • public sector prison staff announced HMCTS’s compliance and enforcement Liability orders with a potential in September 2017. service used to enforce court orders repayment of £18.4 million; and such as penalties and compensation. Departmental Overview 2018

9 PART TWO CONTENTS Services are under strain – Prisons 1/2 Prison numbers 105 public sector HM Chief Inspector of Prisons has issued four 13 privately managed Incidents of self-harm since March 2012 Prison numbers urgent notification orders so far in 2018 for 105This graph shows public annual prison performance sector ratings 2012-13 to 2017-18. HMP Nottingham, HMP Exeter, HMP Bedford Incidents of self-harm have increased by 93% (22,607) since March 2012 HM Chief Inspector of Prisons has issued four urgent notification orders so far in 2018 for HMP Nottingham, HMP Exeter, HMP Bedfordand HMP Birmingham. and HMP Birming- Incidents of self-harm ham. 50,000 13HMP Birmingham, privately managed by G4S, was managed issued with an ‘urgent notification’ in August 2018. The notification stated that “of 70 recommendationsHMP Birmingham made , managed by G4S, was issued since the previous inspection, only 14 had been achieved”. The issuing of the notification led to the oversight of the prison immediately being returned to 45,000 HMPPS. with an ‘urgent notification’ in August 2018. The 46,859 notification stated that “of 70 recommendations 40,000 56% of prisons (65 out of 118) were overcrowded in July 2018 40,413 made since the previous inspection, only 14 had 35,000 An unannounced prison inspection in March 2018 at HMP Wandsworth noted the prison to be one of the most overcrowded in England and Wales. At the Annualtime of the inspection,prison it hadpe a rfcertifiedormance normal capacity ra tingof 861 sand 20a maximum12-1 3operational to 20 capacity17-1 of 81,452 and it held a populationbeen of 1,428. achieved”. The issuing of the notification 30,000 34,665 led to the oversight of the prison immediately The inspection identified: 25,000 27,315 13% of prisons rated as having performance of serious concern 36% of prisoners were receiving psychosocial help for substance misuse problems being returned to HMPPS. 24,252 20,000 22,780 23,529 in 40%2017-18 of prisoners stated it was easy to get illicit drugs 42% of men were locked in cells during the working day 15,000 450 referrals were made to the mental health team each month 56% of prisons (65 out of 118) were 10,000 2017-18 12 42 33 13 Mental health in prisons (2017) found the prison system was under considerable pressure, making it more difficult to manage prisoners’overcrowded mental well- in July 2018 5,000 being. 0 An unannounced prison inspection in March March March March March March March These graphs show incidents of self-harm and assaults on staff since March 2012. March 2018 at HMP Wandsworth noted the 2012 2013 2014 2015 2016 2017 2018 2016-17 8 50 34 8 prison to be one of the most overcrowded 12 months ending in England and Wales. At the time of the Source: National Audit Office analysis of Ministry of Justice Safety in Custody inspection, it had a certified normal capacity Quarterly: update to March 2018 2015-16 7 67 21 5 of 861 and a maximum operational capacity of 1,452 and it held a population of 1,428. Assaults on staff since March 2012 The inspection identified: 2014-15 12 65 21 3 Assaults on staff have increased by 185% (5,846) since March 2012 prisoners were receiving psychosocial Assaults on staff 36% help for substance misuse problems 10,000 2013-14 13 64 22 1 prisoners stated it was easy to get 9,000 9,003 40% illicit drugs 8,000 7,000 13 74 10 2 7,159 2012-13 men were locked in cells during the 6,000 42% working day 5,000 020406080100 5,409 4,000 referrals were made to the mental Ministry of Justice Percentage 450 | health team each month 3,000 3,887 3,372 3,157 2,964 Exceptional Majority of target Concern Serious concern 2,000 1,000 Note 1 Direct comparisons cannot be made between prison performance ratings in 0 Mental health in prisons (2017) found the March March March March March March March 2017-18 and those in previous years because prison performance ratings have prison system was under considerable 2012 2013 2014 2015 2016 2017 2018 been derived through a revised performance framework for 2017-18. pressure, making it more difficult to 12 months ending

Source: National Audit Office analysis of Ministry of Justice annual prison manage prisoners’ mental well-being. Source: National Audit Office analysis of Ministry of Justice Safety in Custody Departmental Overview 2018 performance ratings Quarterly: update to March 2018 10 PART TWO CONTENTS Services are under strain – Probation 2/2 In June 2014, the Ministry introduced its Transforming Rehabilitation reforms, creating a public sector National Probation Service (NPS), and 21 Community Rehabilitation Companies (CRCs). Probation services are overseen by HM Prison & Probation Service In (HMPPS),June an2014, executive the agency Ministry of the Ministry. introduced its Transforming Rehabilitation The Ministry’s reforms included making the supervision of low or medium risk of harm reforms,Following the creating 2015 introduction a publicof mandatory sector post-release National supervision brought Probation in by the Offender Service Rehabilitation (NPS), Act (ORS) 2014, Probation offenders the responsibility of privately owned CRCs, under contract to HMPPS. The the number of offenders under probation supervision has risen; around 263,000 offenders are supervised each year by the NPS and andCRCs. 21 Community Rehabilitation Companies (CRCs). Probation services are intention was to open up probation services to new providers and encourage innovation. servicesThis graph shows are probation overseen caseload sinceby HM PrisonMarch 2015 & Probation Service (HMPPS), falling below In December 2017, HM Chief Inspector of Probation reported that the quality of CRC an of the Ministry. work to protect the public is generally poor and needed to improve in many respects, Probation services are falling below the standard expected the standard with most CRCs struggling to deliver services. FollowingThe Ministry’s reformsthe 2015 included makingintroduction the supervision of of low mandatory or medium risk of harmpost-release offenders the responsibility of privately ownedexpected CRCs, under contract to HMPPS. The intention was to open up probation services to new providers and encourage innovation. In NPS performance is stronger than those of the CRCs, based on our analysis of 13 HMI supervisionDecember 2017, HMbrought Chief Inspector in of by Probation the reportedOffender that the qualityRehabilitation of CRC work to protect Act the public(ORS) is generally poor and 2014,needed theto improve number in many respects, of offenders with most CRCs under struggling toprobation deliver services. supervision Probation geographic reports published since 2015. NPS performance is stronger than those of the CRCs, based on our analysis of 13 HMI Probation geographic reports published since has risen;2015. around 263,000 offenders are supervised each year by the NPS and CRCs. HMI Probation’s assessment of Community Rehabilitation Companies and the National Probation This diagram shows HMI Probation’s assessment of Community Rehabilitation Companies and the National Probation Service against its assessments of effectiveness. Service against its assessments of effectiveness

As at March 2017, the total forecast losses expected by CRCs from 2016-17 to 2021-22 were £443 million. In July 2018, the gov- HMI Probation geographic reports Probationernment announced caseload plans to end its contractssince with March CRCs in 2020, 20 two15 years early, and to make other changes to strengthen offenders supervision and improve confidence in the probation system. National Probation Service Community Rehabilitation Companies Probation caseload has increased by 18% since March 2015

Offenders supervised in the period Abiding by Abiding by Protecting Protecting 300,000 the sentence the sentence the public the public

250,000 7 4 13 10 1 9 5 200,000 1 2 2 1 150,000 9

100,000 10 2 2 50,000

Reducing reoffending Reducing reoffending 0 31 March 31 March 31 March 31 March Negative 2015 2016 2017 2018 Abiding by the sentence – Protecting the public Reducing reoffending 12 months ending Neutral no NPS regions were assessed 1 NPS region was assessed 2 NPS regions were assessed

negatively versus 5 CRCs negatively versus 9 CRCs negatively versus 9 CRCs Ministry of Justice Total 221,738251,170 268,062262,758 Positive |

Total NPS 90,618 97,380 103,705106,819 Source: National Audit Office analysis of HM Inspectorate of Probation Geographic Reports Total CRC 131,120153,790 164,357155,939

Note As at March 2017, the total forecast losses expected by CRCs from 2016-17 to 2021-22 1 NPS = National Probation Service; CRC = Community Rehabilitation Companies. were £443 million. In July 2018, the government announced plans to end its contracts with CRCs in 2020, two years early, and to make other changes to strengthen offenders

Source: National Audit Office analysis of Ministry of Justice Offender Management Departmental Overview 2018 Statistics quarterly March 2015 to March 2018 supervision and improve confidence in the probation system. 11 PART THREE CONTENTS Financial sustainability depends on successfully delivering challenging reforms 1/2 In 2016, HM Courts & Tribunals Service (HMCTS) set up a portfolio of change programmes to introduce new technol- ogy and working practices to reform and upgrade the justice system. In 2016, HM Courts & Tribunals Expected savings ServiceTransforming (HMCTS) courts and tribunals set up a portfolio Early progress in transforming courts and tribunals (May 2018) found that HMCTS faces a daunting challengeHM in deliv Courts- & Tribunals Service expects the court reforms Savings include reducing the workforce from 15,000 to 10,000, of changeering the scale ofprogrammes technological and cultural changeto introduce necessary to modernise the justice system and achieve savings, and is behind where it expected to be at this stage of its ambitious reform programme. to deliver total benefits of £1.22 billion by 2024-25 reducing judiciary costs, holding fewer physical hearings and newThe technologyscale of the challenge is andincreasing working and the programme is under significant pressureand to tomeet reduce what is still a annual spending by £265 million by 2023. running a smaller estate. demanding timetable. There are unresolved funding gaps, and trying to fit savings around spending commitments practicesand demand pressuresto reform could undermine and services. upgrade the justiceExpected savings system. The sequence of expected benefi ts as the reforms are introduced HM Courts & Tribunals Service expects the court reforms to deliver total benefits of £1.22 billion by 2024-25 and to reduce annual spending by £265 million by 2023. Expected benefits are interdependent and savings will be delivered incrementally as the elements of reform are implemented Savings include reducing the workforce from 15,000 to 10,000, reducing judiciary costs, holding fewer physical hearings and running a smaller estate.

ThisTransforming diagram shows the sequence courts of expected benefits as theHow reforms savings are introduced. Investment in Lower Lower judicial Fewer physical Reduced and tribunals will be realised technology administration cost demand hearings footprint As at May 2018, around 65% of the benefits from the HMCTS reform programme had come from not replacing Earlystaff who hadprogress left, rather than in from transforming fully implementing new ways of working or moving services online. courtsThis table shows and HM tribunalsCourts and Tribunals (May 2018) Service workforce changes, 2012-13 to 2017-18. found that HMCTS faces a daunting The changes • Introducing • Streamlining • Lower judicial • More flexible introduced automation and statutory processes. demand by hearing rooms. challenge in delivering the scale of by reform data capture automating activity. Simpler procedural Reduce physical technological and cultural change to reduce • • rules to reduce Full case hearings. administration • necessary to modernise the justice demand on physical digitisation. overhead. Centralise case system and achieve savings, and hearings. • Build customer processing. Requires Wi-Fi and • is behind where it expected to • Recruitment of service centres. devices in courts. • be at this stage of its ambitious case officers. • Flexible operations. reform programme.

The scale of the challenge is Source: HM Courts & Tribunals Service six-year delivery plan increasing and the programme is under significant pressure to meet HM Courts & Tribunals Service workforce changes, 2012-13 to 2017-18 what is still a demanding timetable. There are unresolved funding As at May 2018, around 2012‑13 2017‑18 Difference Change (FTE) (FTE) (FTE) (%) gaps, and trying to fit savings 65% of the benefits around spending commitments from the HMCTS reform Total staff 18,269 15,875 ‑2,394 ‑13 and demand pressures could programme had come Ministry of Justice

undermine services. from not replacing Permanent staff 17,587 13,841 -3,746 -21 | staff who had left, rather than from fully Contract and agency staff 682 2,034 1,352 198 implementing new ways of working or moving Note 1 FTE = full-time equivalent. services online.

Source: National Audit Offi ce analysis ofHM Courts & Tribunals Service Annual Report Departmental Overview 2018 and Accounts 12 PART THREE CONTENTS Financial sustainability depends on successfully delivering challenging reforms 2/2

Delivering the planned benefits will be challenging Efficiency in the criminal justice system (2016) set out the view that IT-enabled reform programmes are very difficult to deliver well, and the government does not have a good track record in this area. For example, The new generation electronic monitoring programme (2017) faced significant delays. The Ministry expects to deployDelivering new location monitoringthe tags from the end of 2018, five yearsManaging later than originally dependencies planned. This was partly Early progress in transforming courts and tribunals (May 2018) a result of the Ministry adopting a new high-risk and unfamiliar delivery model to support the procurement and failing to manageplanned the consequences benefits of this. will The planned reforms to courts highlighted a number of risks that typically affect transformation programmes Managingbe challenging dependencies and tribunals are complex, with Dependence on stakeholders to achieve change The planned reforms to courts and tribunals are complex, with many important interdependencies between the different individual projects. In particular,Efficiency to be implemented in the fully, criminal the reforms relyjustice on the introduction of primary legislation.many A Courts Billimportant was included in interdependenciesthe legislative programme outlined in the Queen’s Speech in June 2017, but as yet only a limited Judicial Functionsbetween and Staffing the Bill differenthas been introduced. individual Failure to secure full commitment from delivery partners will HMCTSsystem has assessed (2016) the impact set of differentout the legislative view scenarios that and estimates that, in the absence of all the necessary primary legislation, the IT-enabledvalue of benefits could reform fall by between programmes £72 million and £95 are million each year, and fundingprojects. from the sale of Inestate particular, could reduce by toup to be significantly reduce the likelihood of achieving planned changes £62 million. very difficult to deliver well, and the implemented fully, the reforms and therefore the wider benefits of the Ministry’s reform programmes. Earlygovernment progress in transforming does courts notand tribunals have (May 2018) a good rely on the introduction of highlighted a number of risks that typically affect transformation programmes Although many of the reforms are within the control of HM Courts & Tribunals Dependencetrack onrecord stakeholders in to thisachieve area. change primary legislation. A Courts Bill Service (HMCTS), significant elements rely on the actions of other organisations Failure to secure full commitment from delivery partners will significantly reduce the likelihoodwas of achieving included planned changes in the and thereforelegislative the wider benefits of the Ministry’s reform programmes. like the judiciary, police, Crown Prosecution Service (CPS) or HM Prison & AlthoughFor many example, of the reforms T arehe within new the controlgeneration of HM Courts & Tribunals Service (HMCTS),programme significant elements outlinedrely on the actions in ofthe other Queen’s organisationselectronic like the judiciary,monitoring police, Crown programme Prosecution Service (CPS) or HM Prison & Probation Service. Probation Service. In its court reform update (July 2018), HMCTS acknowledged that the successful delivery of reformSpeech is highly dependentin June on having2017, effective but as yet engagement(2017) with faced the public significant and their partners, includingdelays. other governmentThe departments. It includedonly details a limited of its engagement Judicial with legal Functions profes- and sionals, the public, other government departments and criminal justice partners. In its court reform update (July 2018), HMCTS acknowledged that the successful Ministry expects to deploy new Understanding and managing unintended consequences Staffing Bill has been introduced. delivery of reform is highly dependent on having effective engagement with the Deliveringlocation change atmonitoring pace can result in pressuretags tofrom make decisions the before fully understanding the wider consequences. For example, in the 2012 reforms to civil legal aid, removing funding for civil legal aid from certain areas of law led to a 56% fall in mediation public and their partners, including other government departments. It included assessmentsend of as 2018,a result of reducingfive theyears scope oflater legal aid. than HMCTS has assessed the impact details of its engagement with legal professionals, the public, other government Thereoriginally is a risk that the planned. changes planned This in the wasCourt reform partly programme will increase costs or ofimpact different on the effectiveness legislative of other organisations scenarios and where their needs are not taken into account or sufficiently coordinated. departments and criminal justice partners. In itsa May result 2018 reform of the update Ministry HMCTS stated adopting that reform should not happen all at once, requiringestimates discussion, debate, that, involvement in the and evalua absence- of all tion. a new high-risk and unfamiliar the necessary primary legislation, Understanding and managing unintended consequences delivery model to support the the value of benefits could fall by procurement and failing to manage between £72 million and £95 million Delivering change at pace can result in pressure to make decisions the consequences of this. each year, and funding from the before fully understanding the wider consequences. sale of estate could reduce by up to For example, in the 2012 reforms to civil legal aid, removing funding for civil legal aid £62 million. from certain areas of law led to a 56% fall in mediation assessments as a result of reducing the scope of legal aid.

There is a risk that the changes planned in the Court reform programme will increase costs or impact on the effectiveness of other organisations where their needs are not Ministry of Justice

taken into account or sufficiently coordinated. |

In its May 2018 reform update HMCTS stated that reform should not happen all at once, requiring discussion, debate, involvement and evaluation. Departmental Overview 2018

13 PART FOUR CONTENTS What to look out for 1 Prisons Tackling acute problems In August 2018, the Ministry announced a £10 million fund to tackle acute problems in the ten worst performing prisons by improving training, maintenance and security. The prisons minister offered to quit if he had not turned round performance in these prisons within a year. Improving01 the condition of the estateTackling acute problems Improving the condition of the estate Maintaining stability in the prison service The Ministry announced in March 2017 its plan to replace up to 10,000 old prison places with new ‘fit-for-purpose’ accommodation by 2020. The Ministry announced the building of Prisons The Ministry announced in March 2017 additional prisons but, following the Intransfer August of previously 2018, allocated the capital Ministry funding to revenue funding, has not yet confirmed how these will be funded. The Ministry met its target to recruit an additional 2,500 prison offi cers. By the end Maintaining stability in the prison service its plan to replace up to 10,000 old The Ministry met its target to recruitannounced an additional 2,500 aprison £10 officers. million By the fundend of March 2018, it reported an additional 2,699 officers working in front-line roles compared with of March 2018, it reported an additional 2,699 offi cers working in front-line roles prison places with new ‘fi t-for-purpose’ October 2016. Analysis has howeverto shown tackle that the acute recruitment problems drive means that in 1 thein 3 front-line prison officers has less than three years’ experience compared with 1 in 8 in 2010. compared with October 2016. Analysis has however shown that the recruitment In September 2018, the Ministry announced the departure of the chief executive of HM Prison & Probation accommodationService who had led the service by for 2020. nine years The and will Ministry remain in post until ten worst performing prisons by drive means that 1 in 3 front-line prison offi cers has less than three years’ the appointment of a replacement by April 2019. announced the building of additional improving training, maintenance experience compared with 1 in 8 in 2010. 2 and security. The prisons minister prisons but, following the transfer of Courts previously allocated capital funding to Budget pressure offered to quit if he had not turned In September 2018, the Ministry announced the departure of the chief executive The three fee repayment schemes areround likely to performanceincrease in scale and cost in followingthese the ministerial announcementrevenue made in funding,July 2018. Funding has these not schemes yet confi will add tormed financial of HM Prison & Probation Service who had led the service for nine years and will pressure. how these will be funded. remain in post until the appointment of a replacement by April 2019. Progress on HM Courts & Tribunals prisonsService reform within a year. In July 2018, the Ministry announced seven further court closures in connection with its ongoing reform programme. It also plans to open the first of its Courts and Tribunals Service Centres in Birmingham and Stoke‑on-Trent in January 2019. Judicial02 appointments Budget pressure Progress on HM Courts & Tribunals Judicial appointments The Lord Chief Justice has raised concerns about the difficulties recruiting judges to the higher courts. TheService failure of the onlinereform Judicial Appointments Recruitment System in February 2017Courts also created challenges for prospective candidates. In 2015-16 and 2016-17, the JudicialThe Appointments three feeCommission repayment stated there wasschemes low recruitment resulting in unmet needs. In 2017-18, its recruitment exercises were larger, both The Lord Chief Justice has raised concerns about the diffi culties recruiting judges in the number of vacancies to be filledare and likely in applications. to increase This trend looks in scaleset to continue. In July 2018, the Ministry announced seven to the higher courts. The failure of the online Judicial Appointments Recruitment and cost following the ministerial further court closures in connection with System in February 2017 also created challenges for prospective candidates. 3 Probation announcement made in July 2018. its ongoing reform programme. It also CRC contracts Funding these schemes will add to plans to open the fi rst of its Courts and In 2015-16 and 2016-17, the Judicial Appointments Commission stated there was In July 2018, the Ministry announced that Community Rehabilitation Companies (CRC) contracts will end two years early in 2020, with plans to design new, improved contracts low recruitment resulting in unmet needs. In 2017-18, its recruitment exercises with a more effective commercial framework.fi nancial It also announcedpressure. the launch of a consultation process on futureTribunals probation contracts. Service This consultation Centres includes in Birmingham a range of initiatives, for example how CRC and National Probation Service areas could be aligned to improve joint working with keyand Stoke-on-Trent partners, including the third sector, in Januarylocal authorities 2019. and police and were larger, both in the number of vacancies to be fi lled and in applications. crime commissioners. This trend looks set to continue.

4 Parole CRC contracts Consultation03 and review of parole In MarchProbation 2018, the High Court overturned the Parole Board’s decision to grant John Worboys’ parole. Following this, the Ministry launched a consultation on the operation of the Parole Board to consider the law andIn policy July around 2018, challenging the parole Ministry decisions, announced the transparency of thatdecision-making Community and the role Rehabilitation of victims in the process. Companies (CRC) contracts will end two years early in 2020, with plans to design new, improved contracts with a more effective commercial framework. It also announced the launch of a consultation process on future probation contracts. This consultation includes a 5 Electronic Monitoring range of initiatives, for example how CRC and National Probation Service areas could be aligned to improve joint working with key partners, including the third sector, local The implementation of the new electronicauthorities monitoring service and is police more than andfive years crime commissioners. late but new location monitoring tags are now due to be rolled out from late 2018.

04 Consultation and review of parole Parole In March 2018, the High Court overturned the Parole Board’s decision to grant John Worboys’ parole. Following this, the Ministry launched a consultation on the operation Ministry of Justice | of the Parole Board to consider the law and policy around challenging parole decisions, the transparency of decision-making and the role of victims in the process.

05 The implementation of the new electronic monitoring service is more than fi ve years late but new location monitoring tags are now due to be rolled out from late 2018. Electronic Monitoring Departmental Overview 2018

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