The Public Accounts Committee (PAC) has criticised the government’s ability to negotiate and manage outsourcing contracts. MPs said problems are particularly acute at the Department for Work and Pensions, which is on the “verge of meltdown” over the privately-run operation of welfare reforms and employment programmes. The committee said the government must “urgently get its house in order”, citing overcharging by Serco and G4S for security contracts. In response the government said that it was improving Whitehall’s commercial expertise.
