Issues in Pricing Policy

Abstract

The criteria for and scale of charges in the public sector vary widely both between and within the major expenditure sectors traditionally seen as being ‘social’ — education, health, the personal social services. A wider definition of ‘social’ — and one might argue in economic and political/administrative terms that any service the costs of which are not borne directly by the consumer is a social one — would produce an even broader spectrum of approaches to charging. The agencies responsible for investment in facilities and for the delivery and management of services have differing statutory responsibilities, are accountable to central government, boards or local authorities in different ways, have various forms of relations with consumers, and operate with contrasting management styles. The result is a bewildering array of prices and charges, the justification for many of which is unclear.

I am grateful for the assistance of my colleagues Glen Bramley and Andrew Evans in the preparation of parts of this chapter.