Local payment by results
Briefing: Payment by results for local services
This briefing considers the potential benefits for local authorities of using payment by results (PbR), the risks involved and how to mitigate them.
At a time when PbR is high on the political agenda, the briefing sets out to help councils understand what it entails, and whether it is right for their circumstances. As most schemes are at an early stage, the Commission has examined the issues that local commissioners should consider if they are to use PbR successfully, drawing on some national and international examples.
The briefing suggests that there are five principles that any PbR scheme needs to meet if it is likely to succeed. These are:
- a clear purpose;
- a full understanding of the risks;
- a well-designed payment and reward structure;
- sound financing; and
- effective management and evaluation.
Feedback
We are keen to receive your feedback on this briefing. If you have any thoughts to share, please email: nationalstudies@audit-commission.gsi.gov.uk
Specifically we would like to know:
- What were your initial views on the usefulness of our publication?
- Are there any aspects that you think could have been clearer/made better?
- Would it be useful for us to do some detailed follow up work around Social Impact Bonds or other newer funding models?
- We feel that developing some council/local body case studies would be a useful next step – do you agree? Do you know of any case studies that we should try and find out more about/attempt to write up?
- Are you aware of other organisations doing this sort of work that we could collaborate with?