Peterborough is off to a decent start but not the optimal one. This is being used to bludgeon the concept by all the same reactionary forces in the charitable/NGO/trades union blob which doesn’t want to see any change (although we cannot afford their services in the future).
Clearly no room for complacency with SIBs per se and specifically in the Peterborough bond but some interesting lessons will be drawn…
A Qualified Success For The Peterborough Prison SIB
Stephen Cook – Third Sector
The Peterborough prison social impact bond attracted investment of £5m from 17 charitable foundations to finance six criminal justice charities to work intensively with three cohorts of 1,000 short-sentence prisoners released from HM Prison Peterborough, the first between September 2010 and May 2012.
One purpose was to demonstrate what many such charities could assert from experience – that providing such intensive help to a category of offenders who have not received it in the past would bring down their rate of reoffending.
Another purpose was to show that it was possible to attract investors to this kind of project who are prepared to qualify for repayment and a dividend from public funds only if an agreed figure was exceeded.
Figures released this week show that the mentoring and support provided by the charities resulted in a fall in reconvictions in the first Peterborough cohort of 8.4 per cent when compared to a larger national group with similar characteristics. This is encouraging, and provides useful data for future policy-making.
The minimum figure, however, was 10 per cent, which means that the investors do not qualify for repayment. The target for the first and second cohort combined is 7.5 per cent, and indications are that this will be exceeded and investors will be paid back in 2016. Social Finance Limited, which coordinates the Peterborough and other SIBs, says that three of them have already paid outcome payments to investors.
The Success Of The Peterborough Social Impact Bond
Brinda Ganguly – The Rockefeller Foundation
The first results for the Peterborough social impact bond (SIB) were released and the outcomes are promising. Through a program related investment (PRI), The Rockefeller Foundation supported the Peterborough SIB pilot aimed at reducing prisoner recidivism—and now, four years later, we can point to tangible success for this new innovative finance mechanism. The first ever SIB project reduced reoffending by 8.4 percent when compared to a control group. While a reduction of 10 percent was needed to trigger immediate repayment to investors, the performance of this first group indicates that investors are on track to receive positive returns in 2016. If the reduction in reoffending remains above 7.5 percent, the Ministry of Justice will make payments to investors.