Nick Hurd has told charities involved in public service delivery to expect longer contracts of up to ten years, payment-by-result models funded by the private sector, the end of full cost recovery and less money available for grants.

The minister for civil society delivered the news to a group of local charities from Brighton and Hove last month, who met Hurd at the Cabinet Office with their local Green Party MP Caroline Lucas.

According to a representative from Brighton and Hove CVS who blogged about the meeting afterwards, Hurd said community and voluntary sector organisations who delivered public services would have ten-year contracts rather than three but lower unit costs and price-based contracting, ending full cost recovery models.

He also said ways of incentivizing private sector investment in the voluntary sector through payment-by-result bonuses and social impact bonds would be encouraged.

For charities who received grants, Hurd said less money would be available but the Office for Civil Society would develop a central website of grants and funding opportunities.

Hurd also said the Office for Civil Society would start a campaign to encourage more "local giving to local charities" which the government may match-fund.