Value for Money
What is Value for Money?
The elements of VfM are often referred to as the 3Es:
Economy is the price paid for what goes into providing a service.
Efficiency is a measure of productivity – what you get out in relation to what is put in.
Effectiveness is a measure of the impact achieved and can be quantitative or qualitative.
VfM is high when there is an optimum balance between all three – relatively low costs, high productivity and successful outcomes.
But it goes beyond this and also includes looking at social value – ie delivering real social benefits for customers which go beyond just saving money.
The Homes and Communities Agency, our regulator, has placed particular emphasis on VfM, and requires us to make a ‘self-assessment’ on our VfM activities. This full assessment can be found in our Financial Statements.