Research shows need to rethink commissioning

New research published today shows that traditional commissioning models are inadequate.

Published at a time of budget cuts and efficiency savings, the report highlights the need to measure outcomes and value for money in the widest possible way, by focusing not just on the benefit of the service delivery to the individual end user but on the wider social value created as well.

The research is timely because the Government's vision for a 'Big Society' includes reforming public services and enabling the voluntary and community sector (VCS) to play a greater role in public service delivery.

The Measuring Outcomes for Public Service Users (MOPSU) research findings were published today by the Office for National Statistics (ONS).

NCVO was a key partner in the project, which was based on a three year study into the quality and outcomes of adult social care services and early years education, and, crucially, on the performance of the voluntary and community sector in delivering such public services.

Commenting on the findings: Stuart Etherington, chief executive, NCVO said:
"Effective commissioning must focus on outcomes. Only then will we achieve the high quality, value for money public services that people deserve.

"All too often, statutory funding for front line services adopts narrow performance measurement models. It should be no surprise that if you define, commission and manage services in the same way you always have, you will get the same outcomes, regardless of who is delivering them."

Key findings include:

Research on the role of the voluntary sector in public service delivery found that:

• In 2007-08 the voluntary sector received £12.8 billion of funding from government, this accounted for approximately 36% of voluntary sector total income

• In 2007/08 nearly 75% of government funding to the voluntary sector was in the form of contracts. This shows how important the voluntary sector is for the delivery public services.

• Five service areas - employment and training, law and advocacy, education, housing and social services - depend heavily on government funding, receiving more than 50% of their total income from government

• More than 50% of local government funding of the voluntary sector was for provision of social services

Etherington continued: "Commissioning public service delivery by outcomes gives voluntary and community organisations the opportunity to demonstrate the full value they give to individuals and communities. It ensures that hard pressed public funding is used to best effect in the wider public interest."

The report also shows that the volume of service provision by the voluntary and community sector (VCS) has substantially increased over the last five years.

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