Minister for the Cabinet Office Francis Maude said it was "good news for taxpayers" that Serco has agreed to repay £68.5 million for overcharging on criminal tagging contracts.
We are confident that the company is taking steps to address the issues which our review has identified.
Since day one this Government has been working to reform contract management and improve commercial expertise in Whitehall.
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The company said it had "considered pricing changes very carefully" and "sought to minimise the impact on customers".