Research Brief
Evaluation of the Social Impact Bond
Dec 14, 2011
Format | File Size | Notes |
---|---|---|
PDF file | 0.6 MB | Use Adobe Acrobat Reader version 10 or higher for the best experience. |
Format | File Size | Notes |
---|---|---|
PDF file | 0.2 MB | Use Adobe Acrobat Reader version 10 or higher for the best experience. |
At a time when government finances are stretched there is growing interest in finding new ways to fund public services which improve social outcomes. One new funding model currently being tested is a Social Impact Bond (SIB). A SIB is a form of payment by results (PBR) in which funding is obtained from private investors to pay for interventions to improve social outcomes. If these interventions succeed in improving outcomes, this should result in savings to government and wider benefits to society. As part of a SIB, the government agrees to pay a proportion of these savings back to the investors. If outcomes do not improve, investors do not receive a return on their investment. In September 2010 the first ever SIB was launched in the UK. Approximately £5 million of investment funding from private individuals and charities is being used to pay for interventions for offenders serving short prison sentences (less than 12 months) at HMP Peterborough, a prison in eastern England. RAND Europe has been commissioned to evaluate the development, implementation and operation of this first ever SIB. This report is the first output from the evaluation. It identifies early lessons from the development and implementation of SIB at HMP Peterborough. Such lessons may inform future SIBs or wider payment-by-results (PBR) pilots under consideration by the Ministry of Justice and other government departments.
Chapter One
Introduction
Chapter Two
Contractual arrangements for the SIB and risks and benefits to stakeholders
Chapter Three
Investment in the SIB
Chapter Four
Outcome measures
Chapter Five
Outcome payments
Chapter Six
The intervention and uptake so far
Chapter Seven
Conclusions and lessons
Appendix A
Methodology and approach - additional information on literature search and key informant interviews
Appendix B
Interview protocol
Appendix C
Further information on the intervention model
Appendix D
Tables - age and ethnicity of the Peterborough cohort as at March 2011
Appendix E
Timeline of SIB development
Appendix F
Logic model of the SIB
The research described in this document was prepared for the Ministry of Justice and conducted by RAND Europe.
This report is part of the RAND Corporation Technical report series. RAND technical reports may include research findings on a specific topic that is limited in scope or intended for a narrow audience; present discussions of the methodology employed in research; provide literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; or deliver preliminary findings. All RAND reports undergo rigorous peer review to ensure that they meet high standards for research quality and objectivity.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.