Peterborough Social Impact Bond: Final report on cohort 2 analysis

Date: 
Thursday, July 27, 2017
Category: 
Publication
Publisher: 
UK Ministry of Justice

Title: 'Peterborough Social Impact Bond: Final report on cohort 2 analysis'

Publisher: UK Ministry of Justice

Date: Jul 2017

Background: 

27th July, World's 1st Social Impact Bond 'Peterbourgh SIB' announced that it reduced reoffending rates of 1,000 short-sentenced offenders by 9% (over the target rate of 7.5% set by the UK Ministry of Justice). The 17 investors will recoup their initial investments and on top it, they will receive a 3% return (per annum for the period of investment).

Food for thoughts:

1) Can this be replicated to elsewhere?

2) Is 3% of return enough incentive to attract private investments (for scaling up) despite its uncertainty (high risk as some argue)?

3) What are the possible difficulties in the measurements of SIB's outcomes?

4) After all, will SIB provide a new space for charities and social enterprises to play a role in the provision of public services (enhanced effectiveness with low costs)? or is this mere outsourcing of public services primarily aiming to reduce government's budgetary burdens rather than improvements in the quality of services?

Find more about the project through the report (attachment)

(photo from The Independent)