UK: non profit delivering public services

In the United Kingdom, the Association of Chief Executives of Voluntary Organisations (acevo) has championed the role of non-profits in delivering public services in partnership with the state. Following a recent meeting with the Prime Minister, it seems that progress is underway. The British Prime Minister made clear his intentions regarding the third sector and public service delivery at a meeting with acevo members on 31 January: “The government is committed to bringing public services closer to our citizens. And what’s clear is what matters to people is not who delivers these public services but that they are high-quality and accessible to all. “The country’s third sector, with all its expertise and experience, is playing an increasing role – in giving a voice to the excluded, in championing the ambitions of communities and in providing services themselves. We need to make better use of its skills and deep roots in our communities to improve service delivery.” The British third sector already delivers a wide range of public services with government funding, which now accounts for 37% of charities’ income. Particularly active in areas ranging from housing and social care through to job brokering and community transport, third sector organisations have gained plaudits for their impressive results. They are user-led, driven by need and mission. They operate successfully on a local level, and frequently reach out to some of the most socially excluded and neglected groups. They are often more trusted than public bodies, due to their independence from Government. Yet talk of a wholesale take-over of public services by the third sector is misleading. At present, the sector currently only accounts for 2% of public sector spending, and major institutional barriers stand in the way of a rapid expansion. However, there are signs that politicians now believe a step-change in the sector’s levels of service delivery can, and should occur. The Prime Minister has stated that: “We must remove the remaining obstacles which prevent the sector helping us reshape services around the needs and wishes of the public. We will work with the sector on an action plan for change.” Meanwhile, a cross-sector alliance between acevo, the Confederation of British Industry, and the National Consumer Council, has launched the Future Services Network, which aims to champion public service reform that is genuinely driven by citizens and consumers. These initiatives are moving the debate on from whether charities should consider involvement in public services to how those who are wiling to do so should best engage. John Hutton, Secretary for State of Work and Pensions, launching a new Welfare to Work policy, stated that it is “really a matter of discussing terms.” These terms are crucial for both sides. Charities must be careful in negotiating partnerships with Government to maintain their independence, their ability to lobby, advocate and to act as a “critical friend”. Expansion should not lead to an unthinking “dash for cash”, that may divert organisations from their guiding purpose. Most crucially, commissioning and procurement processes that simply force the sector to become a mirror image of public provision, will not deliver the improvements in public services that politicians crave. In making its vision of third sector service delivery a reality, the Government will need to rethink its approach to working with the sector. The days of short-term, bureaucratic, underpriced and inefficient funding arrangements must come to an end. A long-term strategy for public service reform will require long-term, equal partnerships, focused on results. A forthcoming cross-government action plan will put these issues to the top of the agenda. Third sector organisations will be hoping for a transition from rhetoric to results.