Capita and other outsourcers to write ‘living will’ to protect public services from another Carillion collapse

Outsourcing giant Capita has agreed to write a “living will” to protect public services in the event of a collapse similar to that of Carillion.

Capita, Serco and Sopra Steria have volunteered to draw up contingency plans after the Cabinet Office said it lacked “key organisational information” that could have helped in the aftermath of the Carillion collapse in January.

The trio could complete their continuity plans within weeks and other key suppliers of public services could follow, the Cabinet Office said.

The “living wills” would give the government time to transfer services to a new supplier or take them in-house in the event of a company's failure.

Cabinet office minister David Lidington said: “Carillion was a complex business and when it failed it was left to government to step in – and it did.

“But we did not have the benefit of key organisational information that could have smoothed the management of the liquidation.”

“By ensuring contingency plans can be quickly put in place in the very rare event of supplier failure, we will be better prepared to maintain continuity of critical public services.”

Lidington also said the government would publish previously unavailable data on the performance of critical contracts.

Capita chief executive Jon Lewis said: "Capita’s leadership is committed to upholding the highest standards of service and working together with the Government to effectively deliver critical UK public services.

"Adopting ‘living wills’ underlines our values-based leadership and our determination to help protect the UK’s public services."

Serco, which provides UK public services in the justice, immigration, healthcare and defence sectors, was one of the first to sign up to the new government initiative.

Chief executive Rupert Soames said: “As a major government supplier, who has been quite vocal on issues around Government contracting, it’s pleasing to see industry and government coming together to develop a shared vision for the delivery of public services.

“We are now beginning to see progress being made in a number of areas – transparency, standards of behaviour, risk allocation, and ‘living wills’, which are designed to improve the resilience of government contracting.”