Private company pulls the plug on prison education in face of financial loss

The company, A4e, described on its website as a 'market leader in global public service reform' won the three-year contract to run Offenders' Learning and Skills Services (OLASS) in Kent, starting from 2006. The company was to work in partnership with the eight prisons to develop tailored education and training for offenders.

But it has now made a shock announcement that it will be unable to run the service for the third year of its contract (August 2008 to July 2009) because it stands to make a loss of £892,000.

The company has asked the Learning and Skills Council, which oversees the OLASS programme, for a financial lifeline but is awaiting a response.

A4e has contracts to run offender learning and training at 24 other prisons in the South West, North West and East of England.

Sally Hunt, UCU general secretary, said: 'Running high-quality prison education and training with professional staff does not come cheap as A4e has found out.

'This sends a strong message to government: bringing in private providers is not the solution to providing good quality public services.

'Our members are delighted to see the back of this company although the future for their own employment is not clear. UCU will do its utmost to protect jobs and terms and conditions for staff.'