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Written question asked by Sarah Newton (Conservative) on Thursday, 26 September 2019, in the House of Commons. It was due for an answer on Monday, 30 September 2019. It was answered by Lucy Frazer (Conservative) on Tuesday, 1 October 2019 on behalf of the Ministry of Justice.

Working Links: Insolvency

Question

To ask the Secretary of State for Justice, what support he can provide to charities and other organisations who have not been paid money owed to them as a result of Working Links going into administration.

Answer

As set out in the Secretary of State’s Direction of 8 May and in the response to 275187, it was concluded, on this occasion, that it was reasonable for Government to protect Permitted Subcontractors who suffered losses as they relate to the collapse of Working Links and their Community Rehabilitation Companies. These organisations are directly involved in the delivery of vital frontline probation services. We have been very clear that this is a unique response to a unique and specific set of circumstances. This should not be viewed as setting a precedent for future scenarios.

Of the ten permitted subcontractors that the Authority agreed to make payments to as per the Ministerial Direction of 8 May, nine have been paid to date. The invoice from the remaining permitted subcontractor is currently being reviewed as part of our due diligence process.

Contractors outside of the permitted subcontractor list should continue to pursue any financial claims through the Administrator. The Authority can assist in this process if required.

Secondary information

Type
Written question
Reference
291408
Session
2017-19
Subjects
Charities Insolvency Working Links
Link
View this Written question on www.parliament.uk