19/03/2010 – Main political parties would consider offering smaller public service contracts
Speaking at a debate held by specialist third sector lawyers, MPs Angela Smith, Nick Hurd and Jenny Willott accepted that smaller contracts could work better for the voluntary sector.
Representatives from the three main political parties told third sector leaders they would re-consider the use of very large public service contracts, such as those offered by the Department for Work and Pensions (DWP).
Angela Smith, Minister for the Third Sector, said Labour are looking into whether the DWP model, in which a small number of main contractors are appointed to carry out projects such as the Flexible New Deal, is the best value for money.
Despite some third sector organisations successfully winning large contracts, many smaller charities and social enterprises do not have the resources to compete effectively.
Nick Hurd, shadow minister for the third sector, said that the contracts are not working and promised that if his party attained power they would not offer large-scale contracts on the DWP model.
Jenny Willott, Liberal Democrat third sector spokeswoman, said her party is also not in favour of large contracts.