Payment by results
Opportunities and challenges for improving outcomes for children
December 2011
A discussion paper looking at the benefits and challenges of adopting a payment by results approach to commissioning services for children and families in England.
Background
The idea of commissioning services on a payment by results basis is one which is gaining momentum in several areas of Government policy, including areas that relate to children such as youth justice, family support and children’s centres.
Payment by results offers financial rewards to providers if they achieve positive social outcomes.
Pilots funded on a payment by results basis are already taking place in several areas of children’s social policy, including children’s centres and family support services.
Our discussion paper
Our discussion paper, produced by the NSPCC Strategy Unit, looks at the benefits and challenges of adopting a payment by results approach to commissioning services for children and families.
Potential benefits of payment by results identified in the report include:
- a new source of funding for preventative services
- incentivises successful outcomes
- drives innovation
- encourages the rigorous evaluation of projects, adding to the knowledge base.
Key challenges include:
- predicting the success rate, and possible cost savings, of interventions to ensure targets are set appropriately
- measuring and attributing outcomes
- ensuring there is a timely response to failure
- ensuring the best interests of the child (as opposed to cost savings or investment returns) remain central to practice
- preventing commissioners focusing on services which produce short term results
- preventing risk aversion from stifling innovation
- ensuring information sharing and multi-agency working.
ConclusionThe paper concludes by setting out key principles for providers and commissioners to consider if they are seeking to provide interventions on a payment by results basis.
Our roundtable event
The NSPCC Strategy Unit held a roundtable event in January 2011 to discuss the implications of payment by results commissioning for children and families. The meeting was attended by the NSPCC and a range of external organisations with direct experience of payment by results.
Key points from the Strategy Unit roundtable on payment by results (PDF, 207KB)
is a summary of the discussion and should be read alongside the full discussion paper to underpin and inform subsequent thinking.
Please cite as: NSPCC (2011) Payment by results: opportunities and challenges for improving outcomes for children. London: NSPCC.
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