Editorial: Outsourcing proposals could benefit charities

Surprisingly, vehement opposition to the proposals appears to be in short supply. Instead, what is emerging is a more nuanced analysis of the potential opportunities and pitfalls that outsourcing could bring, starting with the most fundamental of questions: under what circumstances might it be used? Some believe it will only be considered for failing authorities – perhaps due to the consultation being initially announced in conjunction with the review of future options for Birmingham’s failing children’s services – while others expect it to result in a much wider application.

With such sketchy details to go on so far, it is hard to say which analysis is correct. But what does seem likely is that once the consultation has been completed and options put on the table, councils will be under pressure to start to consider using them. It is the thought that this could turn children’s services contracting into a price-driven process – as has been seen in many other public sector services “markets” – that worries so many in the sector. Such concerns are understandable. You only need to look at the fiasco of the G4S London Olympics security operation for evidence of the private sector failing to deliver what it promises under public contracts.

Until now, there has been a perception that the private sector will be queueing around the block to take over the day-to-day running of children’s services up and down the country. But judging by the views of many of the experts CYP Now has spoken to, the likelihood is that companies will come to the conclusion that the risks of taking on such high-profile and difficult work far outweighs the rewards. After all, in the commercial world, maintaining your reputation for delivering on promises is paramount. Imagine the damage that could be wreaked on a company’s profile and ultimately health for making a mistake in a child protection case? It could make the chastening experience G4S suffered over its Olympics contract failure pale in comparison.

The voluntary sector, on the other hand, is less inhibited by these reputational considerations. With this in mind, perhaps more likely – and potentially exciting – is the prospect that charities will team up with councils to pool their collective expertise in delivering a more effective service for children and young people. That vision – already on the radar of Barnardo’s new chief executive Javed Khan – gives councils the opportunity to work with a broad coalition of specialist voluntary sector organisations, each potentially helping to design, commission and deliver a wide range of social care services. This may not be the outcome the government envisages from its outsourcing consultation, but if the commercial sector is reluctant to get involved, it seems that charities have the appetite to do so.

derren.hayes@markallengroup.com