The decision by the Department for Education (DfE) to consult on the potential outsourcing of child protection has understandably provoked a major debate.
Interestingly, this debate is about both the appropriateness of outsourcing such a complex and sensitive service as child protection, and the wider role and impact of public sector outsourcing.
Although local authorities, the NHS, central government and the wider public sector have been outsourcing services for decades, there is surprisingly little evidence of the impact of this policy and practice. There has also been little serious analysis of the reasons why outsourcing has been pursued or under what conditions and/or for what types of services it been most/least effective.
There is some limited academic research and some usefully informative reports from the NAO and Audit Commission on some elements and examples of public service outsourcing. However, hard data/evidence is scarce, leaving the debate to much anecdote and assertion from proponents and opponents alike. A curious situation, given that successive governments have vigorously promoted outsourcing.
The specific proposals for child protection clearly raise some significant questions around: accountability; allocation of risk; complex contracting and pricing; the dangers of fragmenting services rather than encouraging collaboration; and the ethics of ‘for profit’ companies being involved in life and death decisions on behalf of the state. I have written specifically about this previously.
Reflection suggests that the public sector has never had one single, over-riding reason for outsourcing public services. Rather, the stated case has been based on numerous objectives and sometimes combinations of these including:
- A short term need to enhance capacity
- A challenge to orthodoxy and existing practices
- Pressures to drive up productivity and drive down cost
- More choice for collective groups and individual service users
- A need for capital investment when public sector borrowing is restricted
- A need to achieve economies of scale
- Access to specialist expertise
- A party-political ideological commitment to a smaller state
- A straight preference for the business sector over the public sector; and sometimes for a greater role for the charitable and social sectors
Too often the case is not clearly stated and there is either a fudge and/or a retrospective justification.
I strongly believe that when the public sector outsources, it should explain why and, ideally, consult on the business case for doing so in advance. It most certainly should evaluate performance against the stated objectives and be accountable for outcomes.
No one should conflate outsourcing with reform or service improvement. Such outcomes are commonly achieved within the public sector through collaboration with the voluntary and community sector, and by more effectively engaging staff and users. Equally, competition can be used to drive change without outsourcing.
Before the government, local authorities and others pursue even more outsourcing, and before they extend the range of services subject to such, I suggest it is time for an independent, evidence-based enquiry into the efficacy, effectiveness and relevance of public service outsourcing.
Imagine the outrage if social workers made child protection decisions without taking into account either evidence or stakeholder views.
I would hope that such an enquiry would amongst other matters address the following issues:
- The financial and operational results (including a holistic cost benefit analysis) and an examination of the net public value of outsourcing in different services, financial environments and through its various models
- The role, opportunities and limitations of the market and competition in public service delivery and innovation; and examining any differences between services and/or areas of the public sector
- Building on recent national audit office studies, consider how competitive in fact the supply ‘markets’ actually are
- How much service users are involved in every aspect of the process, from pre-procurement to service monitoring
- Implications for staff
- The implications of different ownership models of providers and the benefits of the charity and social sectors compared to the business sector
- Accountability and transparency
- Public confidence in outsourcing scenarios
- The opportunities and costs of both contract terminations and major change
- The nature of probity and lobbying in respect of public service outsourcing, including the relationship between politicians, senior public officials (and those recently retired) and providers
- Examples of ‘best practice’
Such an enquiry should involve all stakeholders including the voluntary sector, staff and trade unions. It is urgently needed and I would hope (though I fear, in vain) that government would push the pause button on further major outsourcing until the enquiry had concluded.
Evidence matters, especially in sensitive public services such as child protection.