Review of Admitted Body Status

The introduction of Admitted Body Status (ABS) provisions in 1999 was intended by the Government to provide a seamless transfer in an outsourcing arrangement involving the transfer of an undertaking.

ABS is in principle an attractive and useful mechanism for dealing with pensions including in the contracting-out process.

It has been suggested that the detailed arrangements are not being fully implemented originally envisaged when first drawn up and this is beginning to affect the inherent qualities of the ABS regime and its best value context.

The Review

Communities and Local Government has been working with stakeholders to consider approaches for ensuring that ABS provisions meet the needs and supports the interests of local authorities, contractors, employees and the taxpayer.

During the summer of 2007 Communities and Local Government established an official advisory group, comprising key stakeholders, to develop an informal consultation exercise and any subsequent revision(s) of the ABS provisions. Membership of the advisory group is provided via the link on the right hand side.

Consultation

The Department is committed to three principles which it considers over-riding in any possible future reform or development of the current arrangements for admitted bodies:

Delivery of Government policy on best value including outsourcing and transfer of undertakings
Meeting Government policy on proper safeguards for employees as regards pension arrangements as set out in the Fair Deal for Staff
That any proposals to achieve these are affordable, sustainable and continue to have no adverse impact on local authority costs or council tax.

An informal consultation document that developed some of the themes of the earlier discussion papers, considered the appropriate next steps in the light of the responses received, and sought comments from a wide range of interested parties was published on 18 January 2008 and is available below for information. Please note the consultation exercise has now closed.

Current position

Communities and Local Government published a report setting out key findings of the informal consultation exercise on 2 October. A copy of the report is available below.

Communities and Local Government intends now to work alongside stakeholders to develop substantive guidance that reflects key issues outlined in this report. As part of a broader package aimed at ensuring ABS provisions best meet the needs of authorities, contractors, employees and taxpayers, Communities and Local Government will develop final proposals, subject to Ministers' agreement, incorporating any necessary regulatory amendments for future consultation.