The implementation of the Payment by Results (PbR) programme is ‘seriously flawed’, missing the opportunity to improve public services, according to a new report.
The report, published by the National Council for Voluntary Organisations, argues PbR has been implemented too ‘crudely’ with contracts containing targets that were irrelevant or detrimental to the desired outcomes.
Analysis of a sample of contracts also revealed that they failed to take into account the complex nature of services so providers could be penalised for circumstances outside their control.
Sir Stuart Etherington, chief executive of NCVO, said: ‘Implementing PbR effectively requires intelligent thought and carefully crafted incentives, but many PbR contracts fall well short of this. Crudely designed targets and contracts risk pushing expert voluntary sector providers out of public service provision.
‘Paying public service providers for the outcomes they achieve rather than the activity they undertake is a worthwhile principle. Charities have an important role to play in improving public services, but commissioners must work with them in order to design effective contracts.’
