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Spending Review: Chancellor looks at full cost payment for charities' services

1 min read
Councils could be expected to pay children's charities the full cost of providing services due to plans under discussion at the Treasury.

Children Now has learned that Chancellor Gordon Brown has accepted the findings of an independent review on how central and local government can better engage with the voluntary and community sector to provide children's services. One of the central features of the report is the principle of full cost recovery.

This week there were indications that Brown may announce as part of next week's spending review a new requirement for councils to channel a greater amount of their funding into charities. This could be tested through the inspection regime.

An insider said: "The Government has not backed full cost recovery at the highest level yet because they are worried about costs.

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