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NCVO: NAO report echoes charities' concerns on payment by results

Commenting on the National Audit Office report on the government's use of payment-by-results schemes, Karl Wilding, policy director at the National Council for Voluntary Organisations, which represents charities, said:

'Our own research found charities thought payment-by-results contracts were often being used because they were political 'flavour of the month' rather than because they were appropriate for the service being delivered.

'Badly designed payment-by-results contracts are commonplace, and can in fact hamper the innovation that they are supposed to promote.

'The principle of payment by results is hard to object to, but the practicalities of getting the mechanism right mean it is often far more effective and efficient to use straightforward contracts and grants.'

Previous NCVO reports have highlighted the challenges of payment by results for voluntary sector providers:

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