Mark Whitehead 19 June 2015

Government leaving £15bn payment by results schemes ‘unmonitored’, says watchdog

The Government has no idea whether its payment-by-results schemes are providing value for money, according to its own spending watchdog.

The National Audit Office (NAO) says up to £15bn of public spending on the schemes which include welfare to work, family support, offender rehabilitation and international aid are not being monitored and the Government cannot demonstrate their value.

It warns that 'without a common source of shared expertise and a strong evidence base, payment by results schemes may be poorly designed and implemented, and commissioners are in danger of “reinventing the wheel” for each new scheme.'

The Government has a growing portfolio of the schemes where payment depends, at least in part, on the provider achieving outcomes specified by the commissioner.

The NAO says commissioners must establish performance expectations at the start of a scheme and actively monitor and manage provider performance. A part of the Government should become the repository of information and expertise about public sector use of the schemes.

Amyas Morse, head of the NAO, said: 'Payment by results potentially offers benefits such as innovative solutions to intractable problems. If it can deliver these benefits, then the increased risk and cost may be justified, but this requires credible evidence.

'Without such evidence, commissioners may be using this mechanism in circumstances to which it is ill-suited, to the detriment of value for money.'

SIGN UP
For your free daily news bulletin
Highways jobs

Waking Night Residential Support Worker - WMF2941e

Westmorland and Furness Council
£34,434 - £35,412
We’re looking for Waking Night Support Workers to join our dedicated team at 23 Hart Street. Ulverston, Cumbria
Recuriter: Westmorland and Furness Council

Policy and Development Officer

North Yorkshire Council
£47,181 - £51,356 per annum
We are a strong and ambitious partnership, with a clear focus on improving outcomes for children and families Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Children and Families Support Worker

North Yorkshire Council
£27,254 - £29,064 per annum
An excellent opportunity has arisen to join North Yorkshire Council’s Early Help Service Knaresborough, North Yorkshire
Recuriter: North Yorkshire Council

Administrator - Stepping Stones

Wakefield Council
£25,989.00 - £26,403.00, Grade 4
Stepping Stones in the Castleford Area Wakefield, West Yorkshire
Recuriter: Wakefield Council

Foster Hub Residential Worker

Wakefield Council
£16,030.50 - £17,217.00, Grade 7
Working in Residential Childcare at Wakefield Council Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner