Estimating benefits

5.28 Estimating benefits means they can be compared with costs and net benefit can be calculated i.e. benefits once costs have been taken into account or netted off.

5.29 Real or estimated market prices provide a first point of reference for estimating the value of benefits. As with cost estimation, where no market price or market exists non-market valuation techniques should be used.

5.30 Expected benefits of an intervention and how these will be measured and realised should be set out in a benefits register. This is a key strand of implementation, operational management and a key part of the management dimension of a business case. A benefits register can be used to support the assurance of benefits realisation as a project or programme is implemented. Box 9 below provides a template for the benefits register.

Box 9. Benefits Register Template

Benefit number

Unique within the register

Benefit category & class

Categories e.g. public sector benefits (direct/indirect), wider social benefits. Classes such as: cash/non cash releasing, quantitative/qualitative etc. (see Box 7)

Description

Including enabling programme, project or activity

Service feature

What aspect of the proposal will give rise to the benefit - to facilitate monitoring

Potential costs

Incurred during delivery

Activities required

To secure benefit

Responsible officer

Senior responsible officer for project or programme

Performance measure

Key performance indicators (KPIs) and relationship to SMART objectives

Target improvement

Expected level of change

Full-year value

Value of benefits (£m)

Timescale

Number of years