Trade union Unite has called for an urgent review of payment-by-results contracts following the collapse of drug and alcohol charity Lifeline.
Lifeline, a charity that reported almost £62m in income last year, is facing insolvency and passing many of its services over to fellow substance abuse charity Change, Grow, Live.
Lifeline was heavily reliant on income from Government contracts, and Unite has argued that PbR commissioning models can create serious cashflow problems for contracted organisations.
The union has called for more funding, a return to collaborative funding models through consortia of providers, and sustainable grants.
Unite national officer for the not-for-profit sector Siobhan Endean said Lifeline's closure should “set alarm bells ringing”.
The union has launched an email campaign urging the public to contact their local parliamentary candidates, asking them to protect the future of local drugs and alcohol services and the jobs of Lifeline staff.
“Drug and alcohol services are chronically underfunded as a result of the government’s savage cuts. We believe that the payment by results model of commissioning is placing the services at risk. Unite members in the sector report that they are under pressure to focus on unattainable measures and targets,” Endean said. “Organisations can be tempted to bid for contracts where they are at risk of operating at a loss.”
Endean said Unite is working to ensure all Lifeline projects remain open and are taken over by providers committed to keeping the same level of service, and that staff and agency workers who work for Lifeline do not face redundancy.
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