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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> | 38Section 7Procurement and commissioningQ29 What are <strong>the</strong> key reforms <strong>to</strong> standards and performance managementarrangements that will ensure that prisons and probation have more freedomand professional discretion and are able <strong>to</strong> focus on <strong>the</strong> delivery of outcomes?It is implicit throughout <strong>the</strong> government’s proposals for reform that a focus on outcomes is key.Both prisons and probation have been driven by prescriptive processes for <strong>to</strong>o long: this stiflesinnovation and limits flexibility. It can also reward perverse outcomes.The key will be balance. Some centrally prescribed standards are necessary for <strong>the</strong> purposes ofensuring public protection and <strong>to</strong> ensure public confidence: for example, <strong>the</strong>re need <strong>to</strong> be clearexpectations around <strong>the</strong> breach of community sentences. Government needs <strong>to</strong> be clear that<strong>the</strong> incremental accretion of additional layers of central prescription does not guarantee betteroutcomes. Better outcomes flow from being clear with providers about expected outcomevolumes and standards and rigorously holding providers <strong>to</strong> account for <strong>the</strong>ir delivery, usingcompetition as a key lever <strong>to</strong> encourage better performance.Q30 What are <strong>the</strong> key reforms <strong>to</strong> financial arrangements that will supportprisons and probation in delivering outcomes at less cost?Nacro believes that financial systems should act as an incentive <strong>to</strong> deliver effective outcomesand that money should be targeted where it makes <strong>the</strong> most difference. In practice, this meansthat we agree with payment-by-result mechanisms and think that <strong>the</strong>se should apply across<strong>the</strong> public and private sec<strong>to</strong>rs, ei<strong>the</strong>r through <strong>the</strong> types of contract let or by exposing underperformingproviders <strong>to</strong> effective competition.Q31 How do we involve smaller voluntary organisations as well as <strong>the</strong> largernational ones?Commissioners need <strong>to</strong> ensure two things: that <strong>the</strong>y get <strong>the</strong> outcomes <strong>the</strong>y require and that <strong>the</strong>ysecure good value for money. In <strong>the</strong> case of <strong>the</strong> former, <strong>the</strong>re is considerable evidence <strong>to</strong>demonstrate that well-tailored, locally responsive services work better in delivering positivereducing reoffending outcomes. Smaller, better connected voluntary organisations are oftenbest placed <strong>to</strong> source, provide and link up individualised services. But it is not <strong>the</strong> commissioner’sresponsibility <strong>to</strong> search for <strong>the</strong>se providers and <strong>to</strong> commission in detail <strong>the</strong> services required foroffenders in a particular locality. It will be more cost-effective for commissioners <strong>to</strong> require primecontrac<strong>to</strong>rs <strong>to</strong> demonstrate <strong>the</strong>y have appropriate and effective supply chains in place <strong>to</strong> deliverservices in detail as part of <strong>the</strong>ir overall offer. This will require prime contrac<strong>to</strong>rs <strong>to</strong> demonstrate<strong>the</strong> knowledge and experience necessary <strong>to</strong> engage with smaller voluntary and communityproviders and <strong>to</strong> develop delivery arrangements which properly build on those local strengths.

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