Saturday, June 17, 2006

The cost of severing Connexions

The ‘Connexions Card’ – a Capita-run loyalty card scheme for 16-19s (see our other blog) - will at last receive the coup de grace. Capita was awarded the 7-year contract (worth £100m) for the project in 2001.

The original target was for 1.7 million students to own a Connexions Card. This was revised downwards as it became apparent the target would be missed. By the end of 2004, less than 55,000 students had used the Card. Our trusty calculator tells us that's just 3% of the original target.


Is Capita embarrassed by this failure? Far from it:
Capita said the end of the scheme was the result of a Department for Education and Skills (DfES) decision, and it expects to receive compensation. It was appointed to run the scheme for seven years from 2001, in a deal worth over £100m.

Capita has received £65.1m for the first five years of the project.

The DfES said all terms were under negotiation, and it expects to make an overall saving from the early closure of the scheme.
If you’ve the stomach for it, more on this story in the Telegraph.

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