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Nacro's response to Breaking the Cycle Green Paper

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<strong>Breaking</strong> <strong>the</strong> <strong>Cycle</strong>: Nacro’s <strong>response</strong> | 22It is an inescapable fact that offenders who face inevitable barriers in <strong>the</strong> labour market byvirtue of <strong>the</strong>ir criminal past will need a lot more support and assistance through <strong>the</strong> initialengagement process than <strong>the</strong> general population of unemployed people. If <strong>the</strong> commissioningenvironment is such that organisations like Nacro are in a position <strong>to</strong> do what is necessary<strong>to</strong> get offenders in<strong>to</strong> a job-ready state, <strong>the</strong> outcomes will pay dividends in terms of turningformer prisoners in<strong>to</strong> taxpayers, giving <strong>the</strong>m real opportunities <strong>to</strong> make a positive contributionand make tangible steps <strong>to</strong>wards a life free from crime. It will also pay dividends in terms ofrelieving <strong>the</strong> burden on <strong>the</strong> public purse.This is likely <strong>to</strong> be achieved by way of cross-sec<strong>to</strong>r partnerships. We believe that governmenthas an important role <strong>to</strong> play in preparing <strong>the</strong> ground for positive partnerships <strong>to</strong> emerge and <strong>to</strong>prosper on <strong>the</strong> basis of a clear understanding of what <strong>the</strong> different sec<strong>to</strong>rs offer. For example,<strong>the</strong> voluntary sec<strong>to</strong>r is uniquely placed <strong>to</strong> reach sections of <strong>the</strong> community o<strong>the</strong>r providerscannot reach so well and this is a pivotal fac<strong>to</strong>r in providing opportunities for <strong>the</strong> hardest-<strong>to</strong>reachindividuals living in communities which are blighted by crime. The voluntary sec<strong>to</strong>r’ssophisticated understanding of what works should make an important contribution <strong>to</strong> a moreoutcomes-focused system, in that we are better able than ever before <strong>to</strong> predict <strong>the</strong> results ofour intervention. A commissioning process predicated on payment by results should open up<strong>the</strong> market and offer a wide range of opportunities for cross-sec<strong>to</strong>r collaboration, as has been<strong>the</strong> case with <strong>the</strong> Department for Work and Pensions’ Work Programme. That said, it is still <strong>the</strong>case that some of this provision is prone <strong>to</strong> ‘creaming’, leaving <strong>the</strong> voluntary sec<strong>to</strong>r <strong>to</strong> workwith <strong>the</strong> most costly and <strong>the</strong> hardest-<strong>to</strong>-help ex-offenders.Until such time as joint ventures are properly formed, <strong>the</strong> shift <strong>to</strong>wards payment by results willinevitably lead <strong>to</strong> a proliferation of prime/sub-contractual relationships. Many voluntary sec<strong>to</strong>rorganisations will not be able <strong>to</strong> carry <strong>the</strong> business risks associated with acting as a primecontrac<strong>to</strong>r, especially in cases where <strong>the</strong> contract is large volume and of high monetary value.Going forward, it is important that <strong>the</strong> commissioning arrangements do not lead <strong>to</strong> a situationwhereby prime contrac<strong>to</strong>rs have disproportionate control over <strong>the</strong> process, thus creating animbalanced relationship between <strong>the</strong>m and voluntary and community sec<strong>to</strong>r sub-contrac<strong>to</strong>rs.This can be avoided by enabling providers – and voluntary sec<strong>to</strong>r providers in particular – <strong>to</strong>be involved with commissioners in <strong>the</strong> discussion about which outcomes should be applied<strong>to</strong> which cohort of offenders. Outcomes with <strong>the</strong> hard <strong>to</strong> reach must be realistic and timedsufficiently <strong>to</strong> allow recognition (and financial rewards) for a positive direction of travel asopposed <strong>to</strong> hard, unrealistic outcomes.As with any system of payment by results, <strong>the</strong> financial arrangements and <strong>the</strong> balance betweencore payments for work done and bonus payments for outcomes achieved must be carefullyworked out. We are encouraged by <strong>the</strong> government’s incremental approach <strong>to</strong> this and <strong>the</strong> useof pilots <strong>to</strong> test different models. This allows time for voluntary sec<strong>to</strong>r providers <strong>to</strong> gear up for<strong>the</strong>se new commissioning arrangements. With some of <strong>the</strong> groups we work with, <strong>the</strong> balanceof payments must always favour core work, given <strong>the</strong> intensity of <strong>the</strong> interventions <strong>the</strong>y requireand <strong>the</strong> limited progress <strong>the</strong>y will make in a short space of time. This does not negate <strong>the</strong> valueof such work, which has <strong>to</strong> start from an extremely low base line.

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