Big Society public services - welfare in a Big Society
The Institute for Government, NESTA and the Design Council hosted a seminar on the future of Welfare in light of the Big Society agenda.
On 28 July, as part of our Big Society Public Services series, the Institute for Government, NESTA and the Design Council hosted a seminar on the future of Welfare in light of the Big Society agenda. This page contains an overview of the discussion.
The panel
- Emma Stewart - Founder, Women Like Us
- Adam Sharples - Director, General for Employment, Department for Work and Pensions
- Karamjit Singh CBE - Social Fund Commissioner
- David Clarke - NAO
- Emma Jones - Office for Civil Society
The case for the Big Society
State welfare provision will be streamlined through a "Work Programme which will move towards a single scheme that will offer targeted, personalised help for those [unemployed] who need it most, sooner rather than later".
A key part of this programme will see more private and third sector provision to tackle worklessness. This means both supporting people back into work and in creating sustainable jobs for the future. Providers that manage to achieve these two outcomes will be rewarded.
Civil society will have to take on a significant role in supporting individuals looking for work. Peer-to-peer relationships and social networks will become increasingly important.
Social enterprises will be crucial at a:
- grass roots level - to support the supply of workers to the labour market
- market level - working with employers to shape labour demand.
However, the panel were aware that hard to reach individuals were the least likely to be able to rely on support from civil society. Their communities often lack a self help ethos.
These individuals are often the furthest from the labour market and present the biggest risk to providers contracted to signpost the journey from worklessness to work.
How do existing examples support the government vision?
The panel supported the view that social enterprises can play a significant role in delivery. They also recognised that creativity can be unlocked through paying providers by results.
Women Like Us provides an example of the social enterprise model. It focuses on bringing women and employers together with flexible work.
It is concerned with the employment needs of working mothers, whilst also seeking to shape the markets that these women are moving into.
Employers are therefore able to pull the market, retaining skills and part time workers - rather than the state welfare model of pushing workers into the marketplace.
Social enterprises are employed through a prime contractor. Prime contractors have sophisticated business analysis departments that social enterprises often lack. However social enterprises have the grass roots skill sets that the prime contractors need.
Social Enterprises have to be commercially aware in order to manage this relationship. They need to be aware of the value they add, and work confidently and collaboratively to dynamically scale projects and win large contracts.
The existing work of community groups and peer to peer relationships in providing a 'stepping stone' to the labour market through voluntary work was also discussed. They will have an increasingly significant role to play in the Big Society.
What are the obstacles to the Big Society in welfare?
The state is big for a reason
In welfare provision, growth has been driven by a need:
- for consistency and a minimum standard of provision
- to shift welfare payments to be a public entitlement rather than an act of charity
- to capture economies of scale.
The Big Society needs to answer how it will meet - or counter - demands for consistency, to overcome the challenge presented by postcode diversity.
Hybrid models - such as the Big Society - mean that the state will have to overcome the inherent tension between discretionary and universal services and commissioning.
The vulnerable and hard to reach
The poorest and most vulnerable often interact with a number of public services - such as the criminal justice system and mental health services.
A cross departmental approach will be needed to reach these people. This will have to be economic as well as social, as they often have high personal debt and lack access to credit.
Provider risk and reward
With the payment by results model, it remains unclear which organisation captures savings. Is it the department, the prime contractor or the service provider?
Also if an asymmetry of information or financial capability exists, small providers may carry the majority of the risk without enjoying sufficient reward.
The profit motive that drives prime contractors can result in a lack of financial transparency and undermine the trust of social innovators.
Delivery models
The prime contractor model provides a problem for social enterprises. They need to be aware of how prime contractors understand and analyse their business in order to deliver against this.
Government appears confident the third sector has the skills to deliver, but may lack the capacity.
Also, given the current financial situation all suppliers and providers need to answer the question of how to innovate with less money.
Barriers to commissioning
Some markets appear closed or restricted. This is due to the presumption of preferred suppliers. Contracts are often too large for smaller innovative businesses.
Commissioners may lack the skill or tools to commission to re-imagine services that overcome silos in government provision.
They may also need support in the commissioning of genuine insights and aggregating relevant information.
Accountability
Many organisations provide welfare type services. However, they are not all funded through the Department for Work and Pensions. This creates a very complicated provider landscape.
How can these obstacles be overcome?
Government will be an enabler and catalyst
The Government hopes to unlock the innovation of both the private and third sector by providing social finance - on an outcomes focused and payment by results basis.
The Big Society can provide a 'Big Chance' for suppliers and providers that had previously been frustrated by top down state run provision.
Social return on investment
If civil society is to respond to the Big Society challenge, more sophisticated tools will be needed to measure successful outcomes.
The SRI provides a model for this. Government may have to look for new platforms, and truly value the role played by social networks and peer to peer relationships in navigating the journey from welfare to work.
Public service reform
Simplicity and transparency will be needed to open up markets. This will be a change from a public service that is focused on intensive delivery.
- Topic
- Public services
- Keywords
- Welfare Accountability
- Publisher
- Institute for Government