© social finance, 2010. 11 social impact bond european offender employment forum 24 th march 2011...

© Social Finance, 2010.

11

Social Impact BondEUROPEAN OFFENDER

EMPLOYMENT FORUM

24th March 2011

Janette Powell – Social Finance

Colin Lambert – St Giles Trust

Social Finance is Authorised and Regulated by the Financial Services Authority. FSA No: 497568

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Who are Social Finance?

Social Finance was formed with an overriding purpose – to connect investment with need in a way that supports social progress


• Our aim is to make more non-governmental money available reliably and quickly to those who need it.

• By making more financial resources available for intelligent interventions, we hope to enable better social outcomes.

• We believe that the market and society need each other and can work more closely together.

• We develop structures that enable investors to fund social progress and receive returns that can be invested again in society. In this way we make more money available, more sustainably, to address entrenched social issues.

• Social Finance is an FSA regulated, nonprofit organisation.

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What is a Social Impact Bond?

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• A Social Impact Bond is a contract with the public sector in which it commits to pay for improved social outcomes.

• On the back of this contract, investment is raised from socially-motivated investors.

• This investment is used to pay for a range of interventions to improve the social outcomes.

• The financial returns investors receive are dependent on the degree to which outcomes improve.

The Social Impact Bond Model


Why do we need a SIB?

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At risk of offending

Receive police

caution

Serve communit

y sentence

Serve prison

sentence

Social Impac

t Bond

Social Impac

t Bond

Social Impac

t Bond

Social Impac

t Bond

Cycle of re-offending

The Social Impact Bond enables a shift in focus from crisis provision to preventative spend

Transfer of resources catalysed by Social Impact Bonds


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Public Sector

Service Users

£££ £ £ £ ££ £ £ £ £

Social Impact Bond – Criminal Justice System


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SIB Delivery Agency

InvestorsPublic Sector

Service Providers

Service Users

£

£

£

£ £ £ £ £ £

SIB – Criminal Justice System

On going operating funding

Money drawn down evenly over project life

Host prison - HMP Peterborough operated by Sodexo Justice Services


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SIB Delivery Agency


Service Providers

Service Users


IA


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SIB Delivery Agency


Service Providers

Service Users

£ £ ££ £ £ £ ££ £ £ £ ££ £ £ £ ££ £


Financial returns dependent on outcomes

Make payment based on defined outcomes

Improved social outcomesReduced public sector costsWider benefits to society

IA

Reduction in re-conviction


How do you get paid?

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The payment structure is crucial to ensuring that the Social Impact Bond encourages and enables quality services to achieve outcomes and address the most deep-seated problems

Price per outcome

The price should be value rather than cost-based. This encourages the development of more cost-effective outcome delivery models.

e.g. the price should be based on the value to the government per reduced re-offender not the on the cost of services delivered

Pricing structure

The pricing structure should be designed to encourage service providers to work with the entire target population rather than focus on quick wins. Also ensures that investors are rewarded for all the value they create.

e.g. if the payment is based on reduction in re-offending then it is more “profitable” to work with a low level offender and stop him offending than invest in effectively resettling a frequent offender. However, if the payment is based on a reduction in conviction events the perverse incentive is removed.Payment

timingThe payment is received when the outcome is achieved and measured


• Cost of intervention is smaller than public sector savings

• The cost savings accrue within a relatively short time horizon

• The cost savings are cashable (particularly in the current economic environment)

• There are good outcome metrics on which to base a contract

• Preventative interventions have been shown to improve the outcome

Can it be used anywhere?

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This model does not apply to every social issue and is only one of a range of funding options

Traditional funding streams will still be critical in funding many services

When Social Impact Bonds Apply


Example – The One Service

The service is funded by investment raised through a Social Impact Bond. Interventions are delivered by a number of social sector providers with a proven track record, united under the brand “One” to provide a co-ordinated service to prisoners. Financial returns to investors are funded by the Ministry of Justice and the Big Lottery Fund and are based on improved reoffending rates. If reoffending rates do not improve, then investors will receive no recompense.

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Multi-agency InterventionsPeer

Volu

nte

ers

Peer

Volu

nte

ers

Bail

Support

B

ail

Support

St

Gile

s Tru

stSt

Gile

s Tru

st

St

Gile

s Tru

stSt

Gile

s Tru

st

St

Gile

s Tru

stSt

Gile

s Tru

st

Pri

son S

taff

Pri

son S

taff

St

Gile

s Tru

stSt

Gile

s Tru

st

STG

M

ento

rsSTG

M

ento

rs

STG

/M

ento

rsSTG

/M

ento

rs

Orm

isto

n

Orm

isto

n

Volu

nte

ers

Volu

nte

ers

Orm

isto

nO

rmis

ton

Volu

nte

ers

Volu

nte

ers

Com

munit

yC

om

munit

y

STAGE 1 STAGE 2 STAGE 3 STAGE 4

HOUSINGDRUG TREATMENTGYMEDUCATIONWORKFAITHHEALTHCAREetc

HOUSINGDRUGSFAMILY MEDICATIONMENTAL HEALTHBENEFITSDEBTEMPLOYMENTetc

HOUSINGDRUGSDENTISTMENTAL HEALTHEMPLOYMENTFAMILYLIFE SKILLSBUDGETINGetc

TENANCY SUPPORTATTITUDESCOUNSELLINGTRAININGFAMILYFAITH GROUPSFRIENDSetc

HEALTHY LIVINGCOUNSELLINGWORKFAMILYVOLUNTEERINGVOTINGHOBBIESCOMMUNITY GROUPSetc

Example offender journey

12 months support post release

Orm

isto

n

Orm

isto

n


Where do St Giles fit in?

• First agency involved• Helped mould the project• We are delivering the ‘through the

gates’ element of the service• Why us?


TTG Family Tree

Housing Advice and NVQ in IAG in Wandsworth

Straight to Work

The Model Borough Project

Equal Engage

OLASSProbation

Through the Gates

Peterborough Project

Inside Out

Bexley and Redbridge IOM

SOS

Youth Services

Meet at the Gates


The Proof:


• NVQ 3 in IAG in the prison

• Through the gates workers

• Resettlement Support • Other agencies in the

community and volunteers to help keep people out of trouble for 12 months after release

The Peterborough Project


• Serving prisoners trained as peer advisers using NVQ 3 in Information, Advice and Guidance

• Pre release assessments done by TTG workers or Peer Advisers

• Work begins on planning for release, make referrals

• Links made with in-prison services

In prison


• Met at the gates• Taken to key appointments• Accommodation found – often

temporary• Support given by paid TTG workers

and volunteers, some of whom have come from Peterborough prison and gained the NVQ

On the day of release


• Work on permanent housing• Ensure benefits claimed• Refer into other services – subs use,

MH• Refer into ETE• Support around staying out of trouble• Lots of hand holding

First 3 months post release


• Lighter touch support• Low level monitoring for one year• Referral onto community mentoring• Be available if there are wobbles• Need early warning system• This is the ‘new’ bit

When stabilised


Case Study

• 28 years old• First offended at 13• Been in prison every year since 17• Diagnosed with schizophrenia, Class

A drug user, PPO• Now out of prison for 4 months,

longest period in his adult life

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Overall Aim

• The only thing we are measured on is whether we can reduce re-offending

• What we deliver is a classic menu of practical help with housing and other services and support to move away from offending.

• Because these are the things we know work

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Questions?

www.socialfinance.org.uk

www.onesib.orgwww.stgilestrust.or

g.uk

© social finance, 2010. 11 social impact bond european offender employment forum 24 th march 2011...

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