In its report ‘Government Grant Services’ the NAO lays out why grants can be a preferrable method of commissioning. Here’s what they said:
Grant funding enables the government to support a wide range of policy-related activities without having to directly manage them on a day-to-day basis.
Giving grants to organisations with the most appropriate skills and experience enables them to appropriately match resources to priorities.
Unlike contracts, grants are not subject to EU procurement rules and have different tax arrangements.
The NAO took a close look at how government grants work and made a range of recommendations on how they might be improved. You can read the full report below: