Security group G4S misses out East Yorkshire’s Wold prison contract

This article was last updated on April 16, 2022

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According to Ministry of Justice (MoJ), the security company G4S has missed out its contract to run East Yorkshire’s Wold prison, and has also failed to win any additional prison contracts in the biggest round of prison privatisation in England and Wales so far.

The firm, whose disorganization in the wake of London 2012 Olympic security led to the Armed Forces being called in to cover a lack of guards, will stop running the jail in July 2013, and will return to the public sector immediately after. It has also failed to secure the Northumberland prison and the South Yorkshire group of jails – Lindholme, Hatfield and Moorland – it was bidding for.

G4S has run the category C training prison, which holds up to 395 men, since its establishment in 1992. Prison inspectors found its performance get deteriorated in 2010. Concerns were expressed over “the availability of drugs, a lack of staff confidence in confronting poor behaviour, weaknesses in the promotion of diversity and limited work and training provision”.

Most recent inspection reports in June, Chief Inspector of Prisons Nick Hardwick warned that despite some improvements, “many of our previous concerns still needed to be addressed effectively”.

A G4S spokeswoman has stated: “We are disappointed by today’s announcements. As the leading private provider of prison management in the U.K., we have 20 years of experience of running prisons for the MoJ.

“Our performance across all six prisons we run has been to a high standard with every aspect of performance either meeting or exceeding the key performance indicators applied by the MoJ.

“We look forward to discussing the contract award decision with the MoJ within the next few days to determine why we were unsuccessful.”

The announcement leads to 5% fall in G4S shares.

Justice Secretary, Chris Grayling has shown his concerns: “The cost of running our prisons is too high and must be reduced. We can do this by being more innovative and efficient, and without compromising public safety.

“That is why I have decided to take a new approach to how we compete prison services and reduce unit costs across the prison estate that will lead to better value for the tax-payer, linked to more effective services to reduce reoffending.”

MoJ have estimated that the proposed changes should save £450m over the next six years.

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