Work programme needs local commissioning for innovation
The Department for Work and Pensions (DWP) devised a procurement model for the work programme that would deliver service innovation through payment-by-results, tapered incentives and the transfer of financial risk from the taxpayer to the companies.
A two-tier procurement model of prime and subcontractors was designed to reduce the number of prime contractors and give subcontractors the freedom to deliver service innovation. The model was neat but is it working in practice?
This was the question addressed by Manchester Business School's institute for innovation research, which concluded in a study that the new system delivers financial incentives but appears to be inadequate as a framework for service innovation.
Su Maddock is a fellow of the Centre.
Read her article here: http://www.guardian.co.uk/