Outcome-based payment schemes: government's use of payment by results (2015) - An estimated £15 billion worth of Payment by Results (PbR) schemes have been established since 2009. PbR contracts are most likely to succeed where results can be measured and attributed to providers' interventions. PbR is technically challenging with costs and risks that are often underestimated. Commissioners should justify their choice of PbR over other contract mechanisms so decisions are open to scrutiny. Commissioners need to be aware of the risks they retain in the event of providers failing to meet objectives. PbR mechanisms do not remove commissioners' responsibilities for overseeing provider performance.
Transforming Rehabilitation (2016) - This report shows how the Ministry took account of limited provider appetite for delivering probation services on a payment by results (PbR) basis. The resulting commercial model with only around 10% PbR increases the risk that innovative approaches to reducing reoffending may not be adopted by providers. The 'Fee for Service' model needs to better incentivise providers to transform the service and not just deliver established practices.
Spinning out MyCSP as a Joint Venture (2013) & Investigation into members' experience of civil service pension administration (2016) - MyCSP is the first mutual spun out from central government to provide pensions administration to the civil service. The 2013 report sets out the set-up of the deal, while the 2016 report highlights the causes behind performance problems arising after MyCSP took over delivery of pension payments.
Companies in Government (2015) - This report shows how the number of companies in government has increased while other public bodies have decreased. Despite this there is no set approvals process for establishing companies (unlike other models such as mutuals) and no guidance on when a company is the best model to use.