Transcript Slide 1

Response to Professor Dan Finn:
The ‘Rehabilitation Revolution’ and
Payment by results
Dennis Gough
Director of Community Justice
Institute of Criminal Justice Studies
University of Portsmouth
Penality and welfare
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“Why have researchers of criminal justice on the one hand and
welfare policy on the other, paid no attention to each other’s
work.” (Wacquant, 2013, in Squires and Lea (ed) Criminality and
Advanced Marginality, p.250)
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“From now on, diversity is the default in our public services. What
does that mean? It means that instead of having to justify why it
makes sense to introduce competition, as we are now doing with
schools and in the NHS, the state will have to justify why it makes
sense to run a monopoly.”
David Cameron, Prime Minister (2011)
Transforming rehabilitation
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Statutory rehabilitation extended to all 50,000 of the most prolific
group – offenders sentenced to less than 12 months in custody;
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a fundamental change to the way we organise the prison estate, in order to put
in place an unprecedented nationwide ‘through the prison gate’
resettlement service, meaning most offenders are given continuous
support by one provider from custody into the community;
PAID FOR BY;
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opening up the market to a diverse range of new rehabilitation providers, so
that we get the best out of the public, voluntary and private sectors, at
the local as well as national level;
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new payment incentives for market providers to focus relentlessly on
reforming offenders, giving providers flexibility to do what works and
freedom from bureaucracy, but only paying them in full for real
reductions in reoffending;
The future market in rehabilitation
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The MoJ intends to compete 21 contracts for the provision of services
for low- to medium-risk offenders across England and Wales.
The total value of the contracts to be let is likely to be between £5bn
and £20bn over the next ten years
CRCs will be paid for managing the cases allocated to them, and a
proportion of their payment will be at risk and dependent on their
performance in reducing reoffending.
Where requirements have been placed on CRCs under contract in
relation to the delivery of services, these will be monitored through
NOMS account management; this will include penalties for services
not delivered to time or to quality.
Innovation
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CRCs will be responsible for delivering the sentence of the court for
each offender allocated to them to manage, and in doing so seek to
rehabilitate offenders and reduce reoffending. The system will give
CRCs the combination of “grip” or control over offenders and flexibility
to deliver appropriate rehabilitative services. CRC owners and CRCs
will have the freedom to design the services which they believe will be
most effective in reducing reoffending. They will be able to compel
offenders to engage in activity which falls within the sentence of the
court, and some types of sentence will give them considerable scope
to require offenders to engage in rehabilitative activity. They could
also choose to offer additional rehabilitative support to offenders on a
voluntary basis, in pursuance of a reduction of reoffending and a
payment under payment by results.
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“CRCs will have maximum flexibility to determine how the “rehabilitation activity
requirement” will be delivered. NOMS will not specify what providers must do
towards rehabilitation, save for ensuring that the service meets basic minimum
standards, including the need to be legal, safe and decent
Governance and inspection
• Broadening the remit of HMIP
• There will continue to be an independent
Inspectorate of Probation with the same
statutory remit as now. The Inspectorate will
inspect the system as a whole, covering both
the NPS and CRCs, though minimising
bureaucratic burdens, and to liaise with HMI
Prisons in relation to pre-release provision.
• Light touch regulation about ‘black box’
rehabilitation interventions (including risk
assessment), staff competence and abilities,
PAYMENT MECHANISM SUMMARY –
KEY DESIGN FEATURES
• Fee For Service
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Annual price paid in twelve equal payments made monthly in arrears
Providers will bid against a predicted baseline volume range, weighted for
sentence type & length
At the end of each contract year, the payment is reconciled to the actual
volumes recorded, with a retrospective payment or clawback applied if actual
volume is shown to have been outside the predicted range
Deductions made for failure to deliver the orders of the court to specified time
and quality
Payment by results
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Therefore there will be two measures for re-offending used to
calculate the PbR payment. These include:
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1. Binary metric = measures the percentage of offenders that are
convicted of an offence within a 12 month period.
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2. Frequency metric = measures the rate of offences committed by
offenders within a cohort within a 12 month period.
PbR Issues
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1) It is difficult to measure re-offending outcomes in binary terms making it
difficult to specify what ‘quality’ consists of and how performance should be
monitored.
2) Re-offending outcomes cannot be controlled by one provider alone, but
depend on the performance of a range of other services such as health (for drug
and alcohol treatment) and local authorities (for stable housing). This makes it
especially difficult to attribute outcomes and therefore measure the value add of
different providers, which increases the risk that contracted providers will be
paid too much (and potentially for outcomes generated by other services) or,
alternatively, too little (due to the poor quality of related services) ie everyone
or no one gets paid!
3) Where multiple providers contribute to achieving an outcome, it is also
generally harder to ensure that their activities are effectively co-ordinated
across organisational silos, particularly if these organisations have different
ownership (i.e. public and private sector) or misaligned incentives.
4) In built ‘gaming of system’ as offenders deemed to be ‘high risk’ can be
passed on to the state by the CRCs. Could mean that those who have
multiple criminogenic needs, or are non-compliant are moved to state who will
purchase interventions from CRCs and be accountable.
Key questions for the future
• In what way will private and voluntary ‘entrepreneurs
of punishment’ (Feeley,M (2002) change the nature and
extent of punishment in the community?
• Will the specific nature and characteristics of the
‘voluntary sector’ remain or be reconfigured in the
image of the state or of business?
• Will payment by results lead to innovation, efficiencies
and improved local outcomes or fragmented, one size
fits all approaches and economies of scale?
• See Gough, D in See Gough, D in
http://www.crimeandjustice.org.uk/publication
s/critical-reflections-social-and-criminaljustice-first-year-coalition-government