The Department of Health plans to introduce payment-by-results contracts for its mental health services, as it sets out to significantly expand the scope of payment-by-results commissioning. 

The announcement was made in a letter from David Flory, deputy chief executive of the National Health Service, which also included a draft guidance of its mental health payment-by-results framework for 2012-13.

A number of services within the NHS already operate within a payment-by-results framework, including maternity services and chemotherapy and radiotherapy.

And a number of government departments are rapidly introducing payment-by-results for services.

Last month, the Department for Education announced that 27 local authorities would be trialling payment by results for children's centres.

The 27 local authorities will be testing rewards for reaching the most vulnerable families, improving family health and wellbeing and raising attainment of children at age five.

The government announced on the 6 July that it was providing up to £3m for up to 30 local areas to trial payment by results in children’s centres.