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<table><tbody><tr><td><p>As set out in the Secretary of State’s Direction of 8 May,
it has been concluded, on this occasion, that it is reasonable for Government to protect
Permitted Subcontractors who suffered losses as they relate to the collapse of Working
Links and their Community Rehabilitation Companies. These organisations are directly
involved in the delivery of vital frontline probation services. Further to the Direction,
we have worked with the Permitted Subcontractors to agree the monies that are owed,
after undertaking extensive assurance checks against their Proof of Debt applications.
We are now in the process of signing the Grant Agreements with each of the Permitted
Subcontractors and validating their payment details in order to expedite payment of
the monies owed.</p></td></tr></tbody></table><p>We have been very clear that this
is a unique response to a unique and specific set of circumstances. This should not
be viewed as setting a precedent for future scenarios.</p>
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