A key requirement of the EAS is to demonstrate annually that it offers value for money to the five homes authorities that constitutes the EAS.
Value for Money, or cost effectiveness, is a measure of how well resources are being used to achieve intended outcomes. Good value for money is the optimal use of resources to achieve intended outcomes. VfM is usually measured by considering:
- Economy: minimising the cost of resources used while having regard to quality (inputs) – spending less.
- Efficiency: the relationship between outputs and the resources used to produce them – spending well.
- Effectiveness: the extent to which objectives are achieved (outcomes) – spending wisely.
- Equity: the extent to which service provision is needs based to remove barriers and facilitate equal opportunity – spending fairly.