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Services for Young People

I am grateful to my hon. Friend for that question. As he has rightly said, we considered the issue. In principle, I do not think that there is any division between the parties on payment by results. The question is: who is paid by results? Are we really going to try and collect data on a once-a-week youth club in a particularly deprived area which has a brilliant community leader who builds on the history in that area, where parents themselves attended clubs locally and there is a great support, and it really brings the community together? Will the expense be completely disproportionate to the effort of collecting it? The answer is probably yes. The danger of identifying something at a micro level where we can easily pay someone to deliver results is that they will then always have to be able to provide that at that micro level before we support the whole principle, and that could limit its impact. Payment by results is probably better introduced at a higher level. For example, Birmingham city council could have a partnership with Goldman Sachs for the money, Serco for certain other skills, and seek to bring in additional private money to support and strengthen the focus of the services it provides. That extra money could be brought in to support those services on an evidence base that makes the council—and the hard-hearted business people—believe that they can deliver those improved outcomes for young people. As a Government and as a society, we need to be more effective in ensuring that the money to deliver improved outcomes for young people, which we vote for in this place, actually helps to deliver them. It is important to get the mechanics right.