Payment by Results hampering public service innovation, says report

A key government mechanism to boost innovation in public services could be preventing rather than promoting new ways of working, a report today warns.

Payment by Results (PbR), where a contractor is paid for a successful outcome rather than for undertaking specified activity, has been seen as an important tool for public service reform.

It is intended to give providers the freedom to decide how to achieve results, rather than requiring them to follow directions from government.

But the National Council for Voluntary Organisations has warned that the instability created for providers by PbR is in danger of making them more risk-averse and less inclined to experiment with new ways to achieve results.

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