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Sector leaders lament absence of 'social value' in White Paper

Finance | Tania Mason | 12 Jul 2011

Sector commentators have largely welcomed the Open Public Services White Paper, recognising that the reforms have the potential to create unprecedented opportunity for civil society organisations to deliver more public services.

But responses were also tempered by warnings of private sector dominance of the market, the White Paper’s absence of attention on ‘social value’ and problems with accessing finance.

Navca, CAF and NCVO all highlighted the need for more emphasis on social value.  Navca’s director of Improving Local Services, Katy Wing, said that the potential to harness the power of local charities will never be realised unless an “intelligent approach to commissioning” is adopted that “places social value at the heart of public services”.

NCVO chief executive Sir Stuart Etherington (pictured) said the concept of social value needs to be “mainstreamed, taken seriously and well understood”.

“Rather than assessing providers purely on price, commissioning decisions should be informed by the full social, environmental and economic value a service can add.”

Other concerns remain around the size of contracts, where all but the biggest providers are excluded, and access to finance and cashflow,” he said.

Charities Aid Foundation head of policy Hannah Terrey agreed: “The government will need to ensure that commissioner at all levels are truly empowered to take risks and to value social impact over pure cost considerations, and that organisations can access the working capital they need to be able to participate on a payment-by-results basis.”

The Social Enterprise Coalition added that without necessary safeguards, private providers will dominate public service provision: “We only have to look at the Work Programme to see that when markets open up, large private sector providers move in and squeeze out smaller organisations,” said CEO Peter Holbrook.

Cameron and Clegg pre-empt criticism

In their foreword in the White Paper, PM David Cameron and his deputy Nick Clegg sought to pre-empt any criticism of the proposals by stating: “Those who resist reform, put the producer interest before the citizens’ needs, and object to publishing information about how services perform are conspiring to keep our society less free, less fair and less united.”

Acevo’s Sir Stephen Bubb took a similar tack:  “The White Paper has set out the right direction of travel for our public services, but vested interests will try to make sure we never get to that intended location.

“Over the coming months I urge government to stand strong when facing those vested interests and to bring forward concrete departmental policies in order to move their vision forward.”

Minister for civil society Nick Hurd said the government would shortly publish a  'roadmap' to "inform civil society organisations of the practical new opportunities opening up to deliver these services".

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Directory: CAF Charities Aid Foundation | Charities Aid Foundation | National Association of Voluntary and Community Action | National Council of Voluntary Organisations (NCVO)
Who's Who: Hannah Terrey | Sir Stuart Etherington | Sir Stephen Bubb