On Friday the Ministry of Justice released a report reflecting on the lessons learned from setting up the Social Impact Bond in Peterborough. The report was written by RAND who interviewed 22 people involved in the development of the Peterborough SIB, including St Giles Trust, MoJ, NOMs, Big Lottery Fund, the Prison, investors and ourselves.
It is hard to be objective about a report which details two years of your work. I hope RAND’s report will inform the development of future SIBs so that the model can continue to improve and evolve. RAND highlighted factors that were important in the development of the Peterborough SIB including:
- The collaborative nature of developing the SIB – RAND stress the importance of local engagement with statutory and voluntary sector agencies in the development of the SIB. The SIB model was developed in a local context with local input and now has strong buy in.
- The importance of an intermediary who is trusted by all stakeholders – the SIB works because three stakeholders – investors, government and charities – have come together in one product. RAND stressed the importance of an intermediary who is trusted by all three groups.
- Developing the first model is resource intensive – Both the Ministry of Justice and Social Finance committed significant analytical resource to developing the model because this is an entirely new way of contracting. However, RAND also highlighted the range of lessons learned by analytical services and procurement that can now be applied to future models
- Investors in the Peterborough SIB brought new money to the criminal justice system – RAND also guarded against the risk that future models displace existing funding and stressed that the aim of this model is to bring new money not recycle old funds.
The detailed report can be found on MoJ’s website at: http://www.justice.gov.uk/publications/research-and-analysis/moj/social-impact-hmp-peterborough.htm.
We look forward to the second independent evaluation in about 4 years time which will reflect on the operational learnings from the SIB and the first re-offending results.
If you have questions or comments about the report please do post them below
By Emily Bolton, Director at Social Finance