Public Policy: Using Market-Based Approaches - Department for ...

Public Policy: Using Market-Based Approaches
based system with CBL preferred the latter. 126 Similarly, a survey conducted by
Blackburn Council found 82 per cent of respondents considered their overall
experience of the new scheme as being very good or good and only 2 per cent
as very bad. 127
INEQUALITY
The introduction of consumer choice can lead to increases in outcome inequality
if some members of society are better able to exercise their right to choose. If
the more advantaged, for example, in terms of education or income, are better
placed to bear the costs of collecting and analysing information necessary for
rational decision-making, they are more likely to achieve favourable outcomes
from CBL than less advantaged participants. In some cases, increases in
outcome inequality may be driven by inequalities of opportunity. For example,
vulnerable users may be unable to participate at all if information is only
available in languages or formats they cannot understand. Unless these
vulnerable consumers receive appropriate support, their housing outcome is
likely to suffer.
Those who could be disadvantaged in the context of a CBL scheme include:
● households lacking access to information on vacancies, for example, due to
language barriers, learning difficulties or physical disabilities;
● households lacking access to bidding mechanisms, for example, due to lack
of access to appropriate IT; and
● households unable to make or articulate choices and adopt an appropriate
bidding strategy.
The sources of inequality outlined above apply to inequalities arising between
users of the same scheme. Part III above identifies another dimension in which
increased inequality may manifest itself, namely between geographical regions
operating different schemes. This type of geographical inequality is more likely
to arise when users are locked into their local suppliers, as this allows the market
to develop into sub-sectors of under-performing suppliers located in
disadvantaged areas and excellent suppliers in advantaged areas. As
geographical mobility of applicants is generally low, this was a potential concern
for the national CBL agenda.
Controlling for inequality
Geographical inequality was limited to some extent by the Homelessness Act
2002. This requires local authorities to allow anyone in the UK to join their
register where previously many authorities would only consider applications
126 Brown et al (2002), ‘Allocate or Let? Your Choice’, p.4, Respondents included unsuccessful bidders still on the
housing register, although those who had been on the housing register for over four years showed a far lower
response rate.
127 Source; Twin Valley Homes
130