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Performance payments fail to incentivise children's centres

1 min read Early Years
A government trial exploring the effectiveness of paying local authorities financial rewards based on the performance of children's centres failed to have any significant impact, according to a new report.

An evaluation of the Department for Education’s payment-by-results (PbR) in children’s centres trial concluded that reward payments for the scheme – which involved 27 local authorities between September 2011 and March 2013 – were too low to incentivise participants to achieve all the targets.

The study, carried out by Frontier Economics and the Colebrooke Centre, shows that the PbR model had some impact, including encouraging a greater focus on the core purpose of children’s centres, but it failed to raise awareness of the centres among local politicians and council officials outside of early childhood services.

The report, published on Wednesday, says: "It shows that money itself is unlikely to have an impact on local authorities and reward payment amounts must be sufficiently high to generate an incentive."

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