The actions of Milton Keynes Council have been questioned by operators that say it has failed to guarantee ongoing payments for home-to-school contracts that have been, or are, suspended as a result of the coronavirus COVID-19 pandemic.
Operators received 100% of those contracts’ values until the end of spring term on 3 April. 75% was paid between 20-30 April. Beyond that, no payments have been guaranteed. That is despite Procurement Police Note (PPN) 02/20 advising local authorities (LAs) in England that they should continue to pay at-risk suppliers even when contracted services are not delivered.
Instead, Milton Keynes Council advised operators to investigate what other action or support mechanisms they could access. If none could be found, they were required to inform the LA, outlining what alternatives they had explored and why they were not suitable.
The council says it has financially supported “some” home-to-school contractors since April. PPN 02/20 advises LAs to continue to pay suppliers at risk due to coronavirus COVID-19 on a continuity and retention basis.
“Our providers gave us details of the [government] support that they are accessing beyond the end of April and were advised to contact us should they have financial concerns. We have continued to support some providers on that basis where they have evidenced a need,” a spokesperson says.
An operator that submitted a request for financial help says it did not receive a response until over three weeks later. When an offer was made by Milton Keynes Council it was for 25% of the value of contracts not in operation, less business rates relief.
In an earlier letter to contractors regarding home-to-school services, the council said it was “important that they could be restarted as soon as they are needed.”
A further operator says that Milton Keynes Council continues to make payments under its normal terms for home-to-school contracts that are running. As a result, the operator must wait several weeks for invoices to be settled despite severe financial pressures on its business. PPN 02/20 states that contracting authorities “need to accelerate their payment practice.”
In response, the LA told routeone that it would “consider releasing payments early to support providers [that are] at risk,” but that it is “keen to address their individual sustainability concerns, rather than create a short-term fix.”
At least one of the operators that contacted routeone says that the approach taken by Milton Keynes Council to ongoing payments has contributed to its business being placed in jeopardy. It has lost all private hire work because of the crisis.
The row in Milton Keynes follows claims by home-to-school transport contractors in other areas that they are not being fairly supported during the coronavirus COVID-19 crisis. Research by routeone recently exposed the scope of variation of continuing payments by LAs.
