Maximising Value for Money: Different Approaches, Same Objective
On 22 September 2025, the Government Outcomes Lab (“GO Lab”), University of Oxford, and the Chartered Institute of Public Finance and Accountancy (CIPFA) held a peer learning group session which featured three presentations on innovative approaches and recent case studies:
Case Studies on Smarter Public Spending from the London Borough of Redbridge, and the Thames Valley Violence Reduction Unit
Jeff Matsu, Chief Economist at CIPFA and Fellow of Practice at the GO Lab, University of Oxford, presented two case studies on smarter public spending from the London Borough of Redbridge, and the Thames Valley Violence Reduction Unit. Recapping on the VfM guidance in the UK Green Book and Magenta Book, Jeff illustrated how VfM can be integrated within existing systems and adapted to suit different local contexts. For the Redbridge case, Jeff discussed the adoption of the VfM toolkit, a practical resource developed by CIPFA and the GO Lab, to assess the VfM of individual projects. For the Thames Valley case, Jeff discussed the lifecycle approach that was adopted, which seeks to link impact evaluation and financial assessment across multiple projects.
Commissioning Social Services Through a Traditional Fee-for-service Contract or Social Outcomes Partnership: Which is Better Value for Money?
Dr Elaine De Gruyter, Postdoctoral Research Associate at the GO Lab, University of Oxford, presented on recent work examining the VfM of a traditional fee-for-service contract in comparison to a social outcomes partnership in commissioning social services in the UK. Focusing on the case study of the Kirklees Better Outcomes Partnership (KBOP), Elaine discussed how even when a VfM assessment can appear straightforward, there are many factors that can require careful consideration. For the case of KBOP, this included different sample sizes, limited data, and the need to inform future practice. Elaine presented on the approach adopted and key findings where the social outcomes partnership was found to be less costly and more effective than the fee-for-service contract.
Early Intervention Investment Framework (EIIF) in Victoria, Australia
Matt Donoghue, Director of Early Intervention and Reform at the Department of Treasury and Finance (Victoria, Australia), presented on the EIIF which has been embedded into the Victorian Government’s annual state budget process and is applied to the government funding allocation process. The EIIF aims to maximise VfM by improving outcomes and reducing growth in government expenditure. Matt outlined the rigorous quantification requirements on outcome measures and estimates of avoided costs for all initiatives submitted and funded under the EIIF. Matt also shared four key lessons for implementing similar approaches in other jurisdictions: (1) building partnerships outside of Treasury; (2) making EIIF easy and building trust across government departments; (3) upholding integrity in estimation; and (4) delivering savings, managing risk and driving positive behaviour.
The Value in public finance peer learning group provides a platform for those in government, academia, private and other sectors to discuss and explore ways to improve value creation of public expenditure. This peer learning group aims to create a community of individuals and organisations interested in improving public finance and how economies perform. We are an inclusive group of thinkers and practitioners and would welcome international engagement on the above themes as well as any others.
The group meets every 2 months for an hour-long discussion and is co-organised by the GO Lab and Chartered Institute of Public Finance and Accountancy (CIPFA). Jeffrey Matsu and Dr Elaine De Gruyter co-lead the sessions.
Value for money (VfM) assessment is a critical process organisations undertake to determine whether the benefits of a project justify its costs. While the objective is clear, in practice there are a myriad of approaches due to differences in context, data, resources, and other factors.
This session featured the following presentations on innovative approaches and recent case studies before opening up to a Q&A and wider group discussion:
- Case studies on Smarter Public Spending: Two practical frameworks designed to strengthen financial decision-making in the public sector will be introduced, drawing on case studies from the London Borough of Redbridge and the Thames Valley Violence Reduction Unit.
- Commissioning Social Services Through a Traditional Fee-for-service Contract or Social Outcomes Partnership: Which is Better Value for Money? We will share the GO Lab’s recent work examining the cost effectiveness of the Kirklees Better Outcomes Partnership in comparison to the ad-hoc services commissioned under fee-for-service contracts which preceded it.
- Early Intervention Investment Framework (in Victoria, Australia): This innovative framework has been in place for five years, with the Department of Treasury and Finance implementing the framework for Government. It aims to maximise VfM by improving outcomes for service users and reducing growth in government expenditure, with rigorous quantification requirements. The presentation will cover the framework, approach and implementation experience to date.
Speakers
Jeffrey Matsu – Chief Economist, Chartered Institute of Public Finance and Accountancy, and Fellow of Practice, GO Lab, University of Oxford
Dr Elaine De Gruyter – Postdoctoral Research Associate, GO Lab, University of Oxford
Matt Donoghue – Director, Early Intervention and Reform, Department of Treasury and Finance (Victoria, Australia)