Capita Snaps up £145m London Congestion Charge Deal
Capita Snaps up £145m London Congestion Charge DealReuters

Capita has won a £145m five-year contract to run the London congestion charge scheme only one month after it took over G4S and Serco's electronic tagging contracts with the Ministry of Justice.

After G4S and Serco became embroiled in a criminal investigation by the Serious Fraud Office (SFO) over the tagging contracts scandal, which involved overcharging the government, Capita has continued to mop up lucrative deals in the UK.

The congestion charge contract will start in November 2015 while Transport for London (TfL) has the option to extend the contract for another 5 years.

In 2009, US tech group IBM ran the congestion charge contract despite Capita designing, implementing the technology and running the scheme when it launched in 2003.

Under the new contract, Capita will provide the IT systems, back office and contact centre to run the schemes and the associated enforcement processes.

On 6 January this year, TFL asked Londoners for their views on a number of proposed changes to the Congestion Charging scheme.

Since 2011 the daily Congestion Charge has remained at £10, or £9 if paid using CC Auto Pay or £12 if paid the next charging day, with the cost of the charge falling in real terms over this period.

TfL is now proposing an increase to the daily charge to £11.50 if paid in advance (or on the day); £10.50 if paid using CC Auto Pay or £14 if paid the next charging day.