Practicalities of Payment by Results outweigh potential

The National Audit Office has issued a report ‘Outcome-based payment schemes: government’s use of payment by results‘. The NAO news release introductory paragraphs say:

“The government’s payment by results (PbR) schemes are now estimated by the National Audit Office to account for at least £15 billion of public spending. However, neither the Cabinet Office nor the Treasury currently monitors how PbR is operating across government.

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Understanding the new public procurement rules

Sector think tank New Philanthropy Capital has produced a briefing on the new Public Contracts Regulations 2015. These regulations bring in to effect a European Directive on public procurement, from 26th February. According to NPC, they will help charities win government contracts but do not go far enough. Civil Society News coverage.

The briefing ‘Reforming the Relationship’, written with input from Linklaters solicitors, aims to help charities understand the changes to public services contracts, and to illustrate to commissioners and procurement professionals how certain provisions can be used to help them achieve their outcomes by working effectively with charities. » Continue reading news item ... “Understanding the new public procurement rules”

Learning key lessons on Payments by Results

Long, and successful, experience of working with Payment by Results (PbR) contracts has taught Community Links several key lessons. These form the basis of a new 9 page policy briefing available (in pdf 243KB) via

They highlight three main issues which need to be addressed for such contracts to work well:

  • Contract financing needs to be carefully addressed.
  • The size and structure of PbR contracts can determine the role that different organisations play.
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Sharing learning from across the pond

Two articles from the American NonProfit Quarterly which may be of interest to a UK audience: