The state of commissioning
The Government wants Whitehall to devolve responsibility for the delivery of public services by results, rather than be the default provider of services.
Following the Spending Review, payment by results mechanisms will be explored in welfare to work, community health services, processing services, prisons and probation and children's centres.
However, the bold claims that such mechanisms will lead to efficient providers, greater innovation, and better results that will save money to the public purse all depend on capacity for provision entering into new, uncertain, markets.
Our new report looks at three broad aspects of commissioning and payment by results:
- market creation
- skills and transparency
It identifies the challenge of ensuring market structures that encourage entry, scale and capacity to deliver efficient outcomes and which will attract the right sort of financial investment.