Contracting out Employment-related

Services

Welfare Reform Debate 26 June 2008Steve Davies

Cardiff School of Social Sciences

UK Govt Model of public sector reform

Innovative, high quality service

Close to clients

Altruistic

Address social cohesion

Promote civic renewal

The voluntary sector is the ‘weapon of choice for those engaged in the ongoing battle over

public service reform’.

Performance – behind the hype

• More cost effective• Better performing• More effective in dealing

with the hardest to help• More innovative• Able to spend more time

with clients

Performance contrast: JCP-led and Private Sector-led (PSL) ATs for Jobs

Provider % of job entry

targets met

% of outcomes from non-

JSA customers

(Target 70%)

PSL 78 69JCP-led 140 76

Review of Action Teams for Jobs, Jo Casebourne, Sara Davis and Rosie Page, Research Report 328, IES for DWP, 2006, p 4.

‘…there is no conclusive evidence that the private sector outperforms the public sector on current programmes...’

Evidence-based policy

‘…while there is no conclusive evidence that the private sector outperforms the public sector on current programmes, there are clear potential gains from contesting services, bringing in innovation with a different skill set, and from the potential to engage with groups who are often beyond the reach of the welfare state.’

Evidence-based policy?

Just like that?