Analysis

Peterborough contract collapse: key reasons and its implications

Seen as a blueprint for future charity and council partnerships to deliver children’s services, the £126m contract between Tact and Peterborough City Council has ended after just three years. Experts assess what can be learned.
The partnership between Peterborough City Council and charity Tact ended early after both parties spent more than planned. Picture: Adobe Stock/chrisdorney
The partnership between Peterborough City Council and charity Tact ended early after both parties spent more than planned. Picture: Adobe Stock/chrisdorney

Lauded as an “iconic venture”, the agreement for Peterborough City Council to outsource its “permanency” services to charity Tact Fostering and Adoption was seen as one of the most ambitious partnerships between a charity and council in children’s services history.

Tact won the £126m Peterborough contract in 2016, with the partnership beginning in April 2017. Yet, less than three years later, the arrangement was terminated by mutual consent with both parties spending more than planned.

So, what went wrong and why? Certainly, there were no issues with the quality of the services being provided – it was rated “good” by Ofsted in June 2018. It appears that demand for services outstripped available resources – however, neither organisation has gone into details yet.

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