[WiLT] DWP and Defra accused of 'breaching' Compact

[WiL Admin]

DWP policy 'breaches Compact'

The move by the Department for Work and Pensions towards paying
contractors by results could breach the Compact, Compact Voice has
warned.

The Compact, which governs how public bodies and voluntary sector
organisations work together, says in its funding and procurement code
that voluntary bodies should be paid in advance when providing
services.

Compact Voice, which represents the voluntary sector in relation to
the agreement, has raised concerns that the move towards payment by
results put forward by James Purnell, Secretary of State for Work and
Pensions, last week (Third Sector Online, 28 February) could breach
the agreement.

"We are concerned by what is coming out of the DWP at the moment,"
said Saskia Daggett, Compact manager at Compact Voice. "Section 4.8 of
the funding and procurement code states that the Government undertakes
to take risk up front. The whole premise of payment by results is that
the risk is put on the provider."

Ann Blackmore, head of policy at umbrella body the NCVO, said: "The
Government has a tendency to want to transfer the whole risk to the
provider. We do not think that is appropriate."

A spokesman for the Charity Commission warned that charities
considering taking on contracts on such terms would need to consider
the risks carefully.

"When looking at public service delivery, charities should be sure
they stick to their missions," he added.

Stephen Bubb, head of chief executives body Acevo, said the
development was a real success for the voluntary sector.

"We have to move away from procurement methods based around cost
considerations and look at results," he said. "That is where our
members are very good."

Purnell said he saw the third sector as part of the new landscape.
Charities would bid for top-tier services as well as being
subcontracted to provide services, he said.

"The voluntary sector will have a role to play, and we want to create
a system that will work for them," he said.

The DWP document says:

Organisations providing return to work services will be paid according
to the number of people who return to work and how long they stay
there.

Contracts will be longer, up to between five and seven years.

There will be a new code of conduct for how first-tier, 'prime'
contractors deal with subcontractors.

Source
http://www.thirdsector.co.uk/News/DailyBulletin/788049/DWP-policy-breaches-Compact/28544ADF58B02D6B600295D954A48ECA/



Defra proposals 'threat to sector'

Proposals setting out how the Department for Environment, Food and
Rural Affairs will work with the voluntary sector in future could
threaten the independence of third sector organisations, the
Commission for the Compact has warned.

The proposals, set out in the consultation document Towards a Defra
Third Sector Strategy, include asking charities to "deliver Defra
objectives". The measures could breach the Compact, the commission has
warned.

"Some of the proposals could threaten the independence of third sector
organisations," the commission said. "Proposals to encourage third
sector organisations to deliver Defra objectives could put them at
risk of mission drift or going against their constitution or
objectives."

A Defra spokesman said the comments would be taken into account when a
draft strategy was drawn up.

http://www.thirdsector.co.uk/News/DailyBulletin/788048/Defra-proposals-threat-sector/AD1837F0B9F795F07A18AF14FD7F9406/?DCMP=EMC-DailyBulletin