G4S has HMP Birmingham contract cancelled

The government has been running the prison since August 2018 after stepping in due to the private contractor's failings.

This initial six months was extended for a further six in February, with it being announced today that the temporary step-in will become permanent on July 1.

G4S had signed a 15-year contract with Her Majesty’s Prison and Probation Service to run HMP Birmingham, but it is understood there was a half-way break clause in the contract, which has coincided with the prison's troubles.

The cancelling of the contract has been done by mutual consent, but G4S will have to pay £9.9 million to the government as penalty for breaking certain clauses in the contract.

Prisons Minister Rory Stewart said: “I am confident that HMP Birmingham has made good progress since the ‘step-in’ but to build on this, the prison needs stability and continuity.

“That is why we have mutually agreed with G4S that the public sector is better placed to drive the long-term improvements required and the contract will end.

“Our priority remains the safety of prisoners and staff but this move to restore and consolidate order at one of our most challenging jails will ultimately make sure that we are better protecting the public.”

All staff currently employed at HMP Birmingham will transfer to government contracts on July 1 with trade unions involved in the process. Paul Newton, who was parachuted in to run the prisoner as governor when the government initially stepped in, is set to stay on.

However despite the problems at HMP Birmingham, both the government and G4S insist there is no threat to other privately-run prisons, in particular South Staffordshire's HMP Oakwood.

Mr Stewart added: “We need to be absolutely clear that we still believe in a mixed economy of providers with some of our private prisons among the best performing in the country.

“Indeed, G4S itself is running excellent prisons at Altcourse and Oakwood, and this government believes passionately that private providers should continue to play a crucial role in our system.”

HMP Birmingham has been faced with a catalogue of problems in recent years, not least the riots of 2016 when more than 500 passengers rampaged through the jail.

Other problems at the jail, uncovered by inspectors during a visit, included inmates bullying other inmates and one in seven becoming hooked on drugs while inside.

Jerry Petherick, G4S's custodial and detention services managing director, said: "HMP Birmingham is an inner-city remand prison which facs exceptional challenges including high levels of prisoner violence towards staff and fellow prisoners.

"We believe it is inthe best interests of staff and the company that management of this prison is transferred to HMPPS and we will work closely with the Ministry of Justice to ensure a smooth transition over the next three months.

"We will continue to deliver high quality services at the other four UK prisons that we manage and I would lke to pay tribute to all of our employees who provide an outstanding service at these prisons, often in a demanding operating environment.

"Our dedicated staff deserve credit for some of the most successful initiatives taking place in prisons today. These initiatives support prisoners' individual needs and enable them to learn new skills, take responsibility and reconnect with their families."