Joint Statement on Public Service Design and Delivery by the Third Sector

Joint statement on public service design and delivery by the third sector

Context for this statement

The government has committed to involve the third sector[1] more closely in the design and delivery of public services, recognising the benefits to citizens and communities that may derive from the third sector’s strengths.

The publication in December of Partnership in Public Services: An action plan for third sector involvement emphasises the sector’s potential to transform public services. It sets out concrete proposals to enable this potential to be fully realised across the range of public services. It recognises the important role that grant-aid can play alongside contracts in helping to develop the capacity of the local sector.

The plan stated that third sector organisations “have an enormous amount to contribute to our public services, both in the ways they are designed and delivered

The Local Government White Paper[2] has emphasised the importance of this agenda at local level, stating that, “local government will need to work in partnership not only with other statutory bodies but also with the third sector… [third sector] expertise and enterprise needs to be harnessed and developed to enable local authorities to fulfil their place-shaping role.”

At a time of great opportunities and challenges for third sector organisations, key representative bodies should provide a coherent and positive response to the emerging agenda.

Acevo is the professional association for third sector chief executives, with over 2000 members. NAVCA is the national voice of local voluntary and community sector infrastructure in England. Its 360 members work with 140,000 local community groups and voluntary organisations.

The two organisations have drafted the following joint paper as the basis for such a response. It covers two aspects of the relationship between sector and state on which consensus is important:

1)The various roles of third sector organisations in relation to the government’s agenda on public service reform, and

2)The particular role of the sector in public service delivery, and the dynamic between national and local third sector service providers.

We argue that an expanded third sector role can help to achieve modernized public services that provide:

• More pluralism, variety and flexibility; and
• Greater engagement of citizens and communities in the process of delivery, supporting civil renewal and citizen and community engagement.

Our ambition, through the public sector reform agenda, is to develop a transformed relationship between the individual and the state. The networks and organisations that can enable this to happen are found throughout civil society.[3]

The sector’s roles in public service reform

The third sector has always played a variety of important roles in relation to public service reform. We therefore strongly welcome the Government’s recognition of “the diverse nature of the third sector and the different roles that it plays – shaping and designing effective services, representation and advocacy, lobbying and influencing policy.”[4]

Third sector organisations can, in particular, provide a voice for the most disadvantaged citizens and communities, and work to ensure that unmet needs are recognised and addressed. The capacity of third sector organisations to provide strong, citizen-focused advocacy is crucial, irrespective of whether services are delivered by the public, private or third sector. The following third sector roles are therefore central to the success of the Government’s public service reform agenda:

• Acting as campaigners and catalysts for public service reform, using channels ranging from parliamentary lobbying through to the Community Call for Action, and with a particular emphasis on marginalised and excluded individuals,

• Advising commissioners on strategies and priorities in commissioning, at local, regional and national level,

• Facilitating innovation and continuous improvement across the public services by developing, pioneering and promoting new forms of service delivery,

• Representing, and delivering high quality services to, both communities of place and communities of interest.

In supporting these roles, we believe the following principles should take priority in guiding the implementation of the Government’s agenda:

1)A recognition at local level of the legitimacy and value of policy development and campaigning work undertaken by local third sector organisations that demonstrate good governance and genuine accountability,

2)Encouraging local authorities actively to promote the development of a strong local third sector, with a view to enhancing the capacity of citizens and communities to participate in local governance and public service reform,

3)Concerted efforts to create opportunities for the involvement of all relevant third sector organisations in discussions on local priorities in place-shaping and service commissioning,

4)The promotion of flexible mechanisms such as strategic grants to enable representative third sector organisations to exercise accountability downwards to communities and citizens,

Third sector delivery of public services

Many third sector organisations exist to deliver public services, and have a strong track record in user-focused provision. The particular strengths of the best third sector organisations include:

• a strong focus on the needs of service users,
• the knowledge and expertise to meet complex personal needs and tackle difficult social issues,
• an ability to be flexible and offer joined-up service delivery,
• the capacity to build users’ trust, and
• the experience and independence to innovate.

Collateral benefits to the community may also result from third sector organisation’s complementary work in involving service users and building community ownership, increasing the skills and experience of volunteers, and developing trust and social capital both within and across communities.

Through the third sector’s involvement, the Government aims to re-shape and transform public services; therefore commissioning processes must focus closely on citizens’ needs. The following core principles should guide the implementation of the Government’s agenda:

1)The development and application of a model strategic commissioning and procurement framework, determining the most appropriate strategies and techniques, which all public bodies should apply as a minimum standard,

2)A concerted effort to reduce the present gulf between central guidance and local practice, and to measure the success of initiatives in so doing,

3)A clear division between purchasing and provision functions, ensuring that public agencies must compete for delivery contracts on a level playing field with independent providers,

4)The universal application of the four principles of better funding advocated in the Gershon Efficiency Review: full cost recovery, longer-term contracts, fair sharing of risk, and the elimination of unnecessary bureaucracy.

5)The exploration of flexible mechanisms, such as strategic alliances, joint ventures, and grants, to enable third sector service providers to respond to the changing needs of communities and citizens.

National and local service delivery

Since many national organisations deliver services at local level, they often enter into competition with local service providers. National providers may offer greater infrastructure and capacity than their local counterparts, and many have a hard-earned and well-deserved reputation for providing excellent services that focus on the needs of the individual. Locally based organisations may have particular knowledge, networks, and expertise that give them unique strengths in building community ownership and improving local services. Local ownership helps to develop social capital, characterised by the trust and confidence that arises from organisations with strong roots in local communities. It is essential that commissioning processes reflect the value of social capital.

Commissioning arrangements should encourage collaboration and promote a healthy local sector. Examples of good practice demonstrate clearly how collaboration between national and local organisations can work. In Leicester, the Children’s Fund contract was awarded to a national charity on condition that it worked with small local providers, including a range of black and minority ethnic groups. They delivered a complete package of specialist services, drawing on the skills and local knowledge of local groups and developing their capacity for the future. In this way it is possible for commissioning to support rather than undermine civil renewal, social cohesion and civic engagement.

Long term investment is needed in the vital preventative work that small groups do amongst the most disadvantaged communities. This sort of local community action is key to sustaining local social, economic and environmental well-being.

Commissioners and their infrastructure bodies, particularly the Regional Centres of Excellence in Procurement, should support and encourage collaboration between public service providers with complementary skills. The following core principles should guide the management of local public service markets:

1)Third sector organisations, national and local, should actively explore opportunities to collaborate with others where this adds value to service delivery,

2)Wherever relevant, and drawing on the work of Local Area Pathfinders, commissioners should be aware of the benefits to the community of locally based delivery,

3)Public bodies, such as local authorities, NHS agencies, and Jobcentre Plus offices, should develop and sustain the capacity of the small specialist or local third sector to participate in the commissioning and the delivery of public services,

4)Commissioning processes should explore the value of offering incentives for collaboration between national and local providers,

5)Commissioners should promote the involvement of small specialist or local third sector organisations in service delivery, through suitable contracts or sub-contracts,

6)Principles of sound sub-contracting between large and small providers should be actively promoted by commissioners,

7)Local Compacts can be used to support and promote the role of the local third sector. In those areas where Compacts work well they are likely to be key vehicles for developing a sound commissioning framework.

Kevin Curley

Chief Executive

NAVCA

Stephen Bubb

Chief Executive

ACEVO

January 2007

[1] Often referred to as “the voluntary sector” or “voluntary and community sector”

[2]Strong and Prosperous Communities, DCLG 2006, Vol 2, p.55

[3]See acevo 2006, Choice and Voice

[4] Ib., p.56