Payment by Results: Delivering high quality public services in straitened fiscal times

Governments across Europe are looking for innovative ways to deliver employment programmes which deliver value for money for the taxpayer. The current UK Government has committed to the concept of Payment by Results (PbR). In the UK’s PbR model, the financial risks of delivering back-to-work services are transferred to lead contractors who are directly responsible for services and for managing the payment and performance of their supply chain. This article briefly highlights the economic and social need for exploring alternative mechanisms for public services delivery before moving on to describe the core elements of PbR, using the UK’s Work Programme as an illustration.