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 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.