On the day that UNISON members are protesting over the abolition of the education maintenance allowance (EMA), UNISON is calling for the Government to come clean on the huge cost of cancelling the £68 million Capita contract that runs the scheme.
As MPs prepare to vote tomorrow (19 January) on cutting the EMA, the UKÕs largest union is demanding that the penalty charges, redundancies and other hidden costs of cancelling the Capita contract, are revealed, as this could cost taxpayers up to £40 million.
The union is backing Nick Dakin MPÕs letter to parliament requesting information on how much the government will pay towards canceling the Capita contract.
Dave Prentis, UNISONÕs General Secretary, said:
ÒCameron must come clean on the hidden costs of cutting the EMA. The government says it is forced to withdraw this vital support from the most disadvantaged young people, yet the cost of severing the contract with Capita two years early, could cost up to £40 million in penalty charges.
ÒHundreds of thousands of students receive this vital support but 70% of them may be forced to drop out of their courses if it is removed in the summer. The trail of destruction from abolishing the EMA could also lead to redundancies at Capita.
ÒThe government must rethink their attack on the educational opportunities of young people.Ó
Ends
The Capita contract will finish at the end of August 2013, but the EMA is being scrapped this summer. The full value of the contract from 2009-2013 is £68 million.