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Contracting out Employment-related
Services
Welfare Reform Debate 26 June 2008Steve Davies
Cardiff School of Social Sciences
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UK Govt Model of public sector reform
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Innovative, high quality service
Close to clients
Altruistic
Address social cohesion
Promote civic renewal
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The voluntary sector is the ‘weapon of choice for those engaged in the ongoing battle over
public service reform’.
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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
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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.
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‘…there is no conclusive evidence that the private sector outperforms the public sector on current programmes...’
Evidence-based policy
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‘…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?
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Just like that?