Government announces raft of payment-by-results measures

Government announces raft of payment-by-results measures
Vibeka Mair, Civil Society
2010.07.06

Payment-by-results has been introduced within three government departments over the past week.

Justice Secretary Ken Clarke has said that payment-by-results will be used to rehabilitate offenders and junior children’s minister Tim Loughton is investigating ways in which to use payment-by-results for children and young people’s services.

Further, according to the Guardian Newspaper international development secretary Andrew Mitchell plans to distribute its overseas aid budget through payment-by-results to ensure value for money.

Payments-by-results were introduced into the NHS in 2002 to improve efficiency. Labour also used part payment-by-results to incentivize providers of welfare-to-work.

However, the method has been criticized by sector leaders who warn it could lead providers to frame the service around the contract not best practice.

Michael O’Toole, chief executive of contract management agency 3SC also told Civil Society that "it played into the hands of organisations with big capital to fund early stages of contract delivery.”