Re-examining British Welfare-to-Work Contracting using a Transaction Cost Perspective

HAYLEY BENNETT
2016 Journal of Social Policy  
This article critically reflects on the administration of activation services in the UK. It describes the welfare-to-work quasi-market and focuses on the impact of 2008 commissioning reforms that advocated amalgamating small contracts into larger 'lots', creating a top tier of prime providers to manage subcontractors, and increasing outcome-based funding. Drawing on transaction cost theory and empirical case study research, it is demonstrated that these changes led to an increase in a range of
more » ... ctivities and costs for competing service providers that undermine government rhetoric of choice and efficiency. This article adds to the existing literature on welfare-to-work contracting by demonstrating the difficulties some organisations face in the context of welfare markets and questioning public service out-sourcing processes. It concludes by reflecting on the implications for future market-based social policy reforms.
doi:10.1017/s0047279416000337 fatcat:hgldyt2uabcgtk6375gr4bzhre