Social Finance pioneered the world’s first Social Impact Bond (SIB) in 2010. The aim was to reduce reoffending among short-sentenced offenders leaving Peterborough prison.
Criminal justice was an obvious choice for the first social impact bond. Experts across the country highlighted the paradox of short sentenced prisoners (those who are imprisoned for less than twelve months). Reoffending rates amongst this group were high; around 60% were convicted of at least one offence in the year after release.
Each short sentenced prisoner who reoffended after release in 2007 was convicted, on average, of five further offences within the year. But nobody had statutory responsibility for this group of offenders once they were released from prison. They typically left with £46 in their pocket, often with nowhere to live, no job to go to and no family waiting for them. An extremely high proportion left prison only to return a few weeks / months later.
We wanted the Peterborough SIB to show the world that private investment could be mobilised to tackle even the most complex and intractable social problems.
Gordon Brown, former Prime Minister of the United Kingdom
The social impact bond raised £5 million from trusts and foundations to fund the One* Service – an umbrella organisation designed to respond to the complex needs of offenders. The One* Service was delivered by St Giles Trust, Ormiston Families, Sova, MIND, TTG Training, YMCA and John Laing Training, and was managed by Social Finance. Over the course of the programme, it became an integral part of the Safer Peterborough Partnership. Staff worked closely with the police, the probation service, the Integrated Offender Management Teams, the prison, the local authority, local statutory providers and the voluntary sector.
Over five years of operation, support from the One* Service was offered to two cohorts of 1,000 short-sentenced male prisoners for a period of up to 12 months post-release. Engagement was voluntary, but the whole cohort was included in the measurement of the results
Most of the clients on the One* Service had reoffended before, and for many, a spell in custody did not act as a deterrent. They had acute needs. A high proportion suffered from mental health and substance abuse challenges. Many had housing needs, didn’t have access to money and were in debt, and didn’t have the right skills to find employment.
In July 2017, the Ministry of Justice announced that the Peterborough social impact bond had reduced reoffending of short-sentenced offenders by 9% overall compared to a national control group. This exceeded the target of 7.5% set by the Ministry of Justice.
As a result, the 17 investors in the Peterborough SIB received payment representing their initial capital plus an amount that will represent a return of just over 3% per annum for the period of investment.
The One* Service was delivered by St Giles Trust, Ormiston Families, Sova, MIND, TTG Training, YMCA and John Laing Training, and managed by Social Finance. Over the course of its operation, it was an integral part of the Safer Peterborough Partnership and worked closely with the police, probation, integrated offender management teams, the prison, the local authority, local statutory providers and the voluntary sector. It became an important part of the support landscape in Peterborough.
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