Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted in Part
Capita's IT system upgrade for digital licence fee engagement significantly delayed.
Conclusion
Capita, the BBC’s main contractor for TV licensing, has experienced significant delays in upgrading its IT systems, designed to improve the website and customer journey to support digital engagement.24 The BBC told us that delivery had been challenging and delayed by just under two years, with 10 of 13 milestones completed at the time of our evidence session 18 Qq 21, 29-30 19 Q 24; Television Licence Fee Trust Statement for the Year Ending 31 March 2025, 15 July 2025, HC 1182, p. 31 20 Qq 26, 27 21 Qq 22-24 22 Q 13 23 Q 25 24 Television Licence Fee Trust Statement for the Year Ending 31 March 2025, 15 July 2025, HC 1182, p. 31 9 in September. The BBC attributed these delays to the complexity of legacy systems and supply chain, and the need to avoid risks to licence-fee collection during the transition.25
Government Response Summary
The Committee reported on delays in Capita upgrading its IT systems for TV licensing. Lessons learned from the Capita contract are shared across TVL and the wider BBC through a joined up strategic approach to procurement and contract management.
Government Response
Accepted in Part
HM Government
Accepted in Part
2.17 The BBC partially agrees with the recommendation. 2.18 Lessons learned from the Capita contract are shared across TVL and the wider BBC through a joined up strategic approach to procurement and contract management. 2.19 The main Capita contract delivers well on service levels for TVL, and a regime of continuous improvement is in place across the range of services. 2.20 The IT upgrade element of the contract has experienced delays, leading to the project being rated as a red risk. However, the contract provided for escalation to executives of the respective companies, and this occurred regularly over the last year. The NAO report stated, ‘the BBC has continued to monitor Capita’s IT upgrade work closely and to renegotiate payment schedules based on delivery of contracted commitments.’ As part of milestone payments there is a detailed set of acceptance criteria that are agreed and closely monitored. 2.21 As the upgrade programme progresses and other work is carried out; payment is on delivery and there is strong governance and oversight. External expertise is brought in where helpful to setting milestones to incentivise delivery. 2.22 Other contracts include payment based on success measures, also related to deliverables of projects and programmes of work. 2.23 However, the BBC does not believe that incentives on income or evasion reduction would be appropriate. Past contracts where this has been the case have led to concerns about fairness and proportionality of collection.