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Payment by Results

Presentation given at Action for Prisoners’ Families seminar: Coming Out: putting families at the Putting Families at the heart of resettlement. London: 24 May 2012. www.prisonersfamilies.org.uk. Payment by Results. www.russellwebster.com. Everything you wanted to know about PBR but….

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Payment by Results

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  1. Presentation given at Action for Prisoners’ Families seminar: Coming Out: putting families at the Putting Families at the heart of resettlement. London: 24 May 2012. www.prisonersfamilies.org.uk Payment by Results www.russellwebster.com

  2. Everything you wanted to know about PBR but… What is PbR How it works The challenges of PBR What it means for resettlement Five key principles Resources

  3. What PBR is Best practice Outcome commissioning Should foster innovation and best practice Provider independence Result determined by paymaster Criminal Justice System = Reduction of re-offending Health = Abstinent from drugs DWP = Off incapacity benefit and into work

  4. How does it work? Commissioner decides outcomes Outcomes likely to save money (prison/court/police costs, health costs, benefits costs) And how outcomes will be measured & verified Individual v cohort Length of time Offending via PNC Health improvements, substance misuse outcomes trickier

  5. How does it work? Decision about who pays Government (pilots) Private investors (SIB) Other forms of social investment being developed And when If PbR, have to wait for results How do we fund provision in the meantime? And what for Not for what would have happened anyway Has to be for the right overall outcome

  6. The challenges of PbR Outcome commissioning is difficult Repeated drift from outcomes to outputs A robust, independent means of measurement is hard-to-find Client selection is critical Commissioners will resist cherry picking Providers will resist ‘dumping’ Can result in perverse outcomes Simple re-offending rates leads to cutting off service for those who do re-offend How select provider? If everyone has to work to same tariff?

  7. What it means for released prisoners HMP Peterborough – Sodexo, St Giles Trust HMP/YOI Doncaster – Serco, Catch 22, TP HMP Lees/Armley – public HMP High Down MoJ pilot on short term prisoners (yet to be awarded) Prison focus on resettlement helpful But ministers wedded to binary Holistic provision needs many partners

  8. Five Key Principles for commissioners Audit Commission “Local Payment by Results” A clear purpose.

  9. 2. A full understanding of the risks.

  10. 3. A well designed payment & reward structure

  11. 4. Sound financing for the whole scheme

  12. 5. Effective & Robust measurement & evaluation

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