West Midlands and Staffordshire probation service privatised in multi-million pound deal

Ingeus, a large outsourcer, has won the contract under a joint venture called the Reducing Reoffending Partnership with charity CRI and the St Giles Trust.

The Staffordshire and West Midlands Probation Service has now been renamed the Staffordshire and West Midlands Rehabilitation Company.

The private firm will manage low-risk offenders while sex offenders, violent and serious criminals will be looked after by the National Probation Service.

The Government has awarded 21 regional contracts worth £450 million a year to private firms to run the medium-to-low risk probation service in a move that has been highly controversial.

The deals will see the companies paid on their performance.

Concerns over private firms holding lucrative public service contracts escalated after security firm G4S agreed to repay £109m overcharging the Ministry of Justice for the electronic tagging of offenders. Outsourcing group Serco had to pay £70.5m over the scandal.

The Reducing Reoffending Partnership will officially start running the service from February 1.

Justice Secretary Chris Grayling said: "We finally have in these reforms the opportunity to break the depressing cycle of crime, prison and re-offence that so many individuals are stuck in.

"Every year tens of thousands of offenders are released from prison with £46 in their pocket, get no support and are left to walk the streets. The majority reoffend quickly — and they commit thousands of crimes. That will now change, with proper support and mentoring for every offender who leaves prison, with a real focus on helping them turn their lives around.

"We will pay the organisations that deliver this support by what works — and between them they have the skills and experience to deliver what does. Some of our most successful rehabilitation charities will now have the chance to use their skills to rehabilitate thousands of offenders who up to now have just been left to fall through the cracks."

Napo, the trade union for probation service staff, launched a High Court bid against the reforms but this was later dropped.

When the union launched the action in October it said the plans put probation staff and the public at risk.

Across the country private providers will monitor 200,000 low and medium-risk offenders. Responsibility for rehabilitating 31,000 high-risk offenders will fall on the National Probation Service.

David Biddle, Chief Executive of CRI, said: "The Reducing Reoffending Partnership has the expertise and experience to deliver cost effective services which will help it reduce reoffending, effectively rehabilitate individuals and help create safer communities. "

Rob Owen, Chief Executive of St Giles Trust, said: "As a charity committed to tackling the costly, destructive cycle of reoffending we are delighted to be part of this venture. Each of us has our own unique strengths to bring to it and we are very much looking forward to working with Ingeus and CRI to change many more lives and build stronger, safer communities."

Dean James, Chief Executive of Ingeus, said: "The Reducing Reoffending Partnership provides a great opportunity to use Ingeus's back-to-work expertise to help offenders turn their lives around. We will combine the best practices of our three organisations to achieve this and make communities safer."