Share

Social impact bond pilot to be replaced by 'alternative arrangement'

HMP Peterborough
News

Social impact bond pilot to be replaced by 'alternative arrangement'

Finance | David Ainsworth | 25 Apr 2014

The third tranche of the pilot social impact bond project working with offenders at Peterborough Prison will be replaced with an “alternative funding arrangement”, the Ministry of Justice has decided.

The nature of the new arrangement has not been confirmed, but it will not a social impact bond (SIB).

The Peterborough project works with prisoners released after short sentences to ensure they do not reoffend. The project was the first example of the SIB, a type of payment-by-results contract where investors provide a not-for-profit organisation with capital to carry out interventions. The government pays out if the interventions are successful. The investors make a profit if the project works, and lose money if it does not.

The project was intended to work with three cohorts of 1,000 offenders, and aimed to reduce the level of offending by at least 10 per cent compared to results in a national control group. It was intended to test the effectiveness of the SIB model, but the model has already taken off, with 14 now running in the UK and around 100 proposed worldwide.

Its funding model is being replaced because it is not compatible with the funding arrangements of Transforming Rehabilitation, a UK-wide payment-by-results project to work with ex-offenders which is to be launched next year. The nature of the alternative arrangement has not been confirmed.

Transforming Rehabilitation will contract out work with all low and medium-risk prisoners to a series of prime contractors from the private and voluntary sectors. One of those contract areas will include Peterborough, and the contractor will have responsibility for those being released from Peterborough Prison.

The One Service, the organisation currently delivering the Peterborough SIB, will continue to deliver services up until the Transforming Rehabilitation contractor starts working. After that point, the prime contractor will have the option of leaving the One Service in place, merging it into its own service, or replacing it altogether.

SIB 'is working'

As yet, no money has yet been paid out to investors because an independent assessment of the project’s success has not been carried out. The first payment is likely to be triggered in the summer, if an assessment of the One Service’s performance compared to a control group is successful.

However interim indications indicate that the project is working. According to official statistics published yesterday by the Ministry of Justice, there were 141 reconviction events per 100 offenders among prisoners released from Peterborough between 9 September 2010 and 1 July 2012 – the first cohort of the SIB.

“This compares to an average of 159 reconviction events per 100 offenders released from Peterborough between September 2008 and June 2010; a fall of 11 per cent,” the report said. “Nationally, the equivalent figures show a rise of 10 per cent from 143 to 156 reconviction events per 100 offenders.”

Proud of achievements

A spokeswoman for Social Finance said the project was not being shut down because of problems with the SIB model, but because it had demonstrated its effectiveness.

“We are very proud of what we have achieved so far,” she said. “The social value of the Peterborough Social Impact Bond lies in its flexibility to offer a well-resourced and responsive service to prisoners in custody, through the gates and in the community.

“Offenders have found that the offer of support that is voluntary, proactive, non-judgemental and flexible to be invaluable.”

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Colin Lloyd, founding chair of FRSB, to step down after nine years

20 Apr 2015

Colin Lloyd, chair of the FRSB, will step down in June after three terms in the role, beginning at the...

£1m raised for charities by carrier bag charge in Scotland

20 Apr 2015

More than £1m has been raised for charities from the carrier bag charge since it was introduced six months...

Study finds that men donate more to charity when the fundraiser is an attractive female

17 Apr 2015

Men donate more to online fundraising pages where the fundraiser is an attractive female, and donate competitively...

SNP would push for full devolution of welfare system

20 Apr 2015

The Scottish National Party MPs will push Westminster for devolution of powers on welfare payments and...

National Theatre's first chief executive quits citing problems with leadership structure

17 Apr 2015

The National Theatre's first chief executive, Tessa Ross, has resigned after five months at the organisation,...

Legion condemns poppy use on Ukip campaign advert

17 Apr 2015

The Royal British Legion has said that it is working to make sure that its poppy is “never again”...

Oxfam trials tap-to-donate technology

17 Apr 2015

Oxfam GB is running a trial of near-field communication technology to allow supporters to both donate...

Ice Bucket Challenge effect brings down average online donation amount

15 Apr 2015

The average online donation fell by 8.6 per cent in 2014 to £63.69, according to a survey by fundraising...

Education charity UCAS broke electronic marketing rules, says Information Commissioner

9 Apr 2015

The Universities and Colleges Admissions Service broke electronic marketing rules because its admission...

Join the discussion

 Twitter button

@CSFinance