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

Adults Social Worker - West Essex (Expression of Interest)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in West E England, Essex, Harlow
Recuriter: Essex County Council

Executive Director Finance and Resources

Westminster City Council
£168,135 to £230,985
Westminster City Council is no ordinary local authority. City of Westminster, London (Greater)
Recuriter: Westminster City Council

Assistant Director – Regulatory Services

Derbyshire County Council
£71,202 - £77,495 per annum - plus benefits package
Derbyshire is a county of proud communities, beautiful landscapes and ambitious growth. Derbyshire
Recuriter: Derbyshire County Council

Director of Law and Governance

Southwark Council
Up to £150,000
Southwark is a vibrant, diverse London borough with a strong community identity. Southwark, London (Greater)
Recuriter: Southwark Council

Director of Organisational Strategy and Digital

Wiltshire Council
£123,211 - £131,206
Wiltshire is a county like no other, stunning countryside, vibrant market towns and deep-rooted heritage, it offers an exceptional quality of life. Wiltshire
Recuriter: Wiltshire Council
Linkedin Banner