CIH CONFERENCE. SOCIAL IMPACT BOND 10 NOVEMBER 2011

Transcription

1 CIH CONFERENCE. SOCIAL IMPACT BOND 10 NOVEMBER 2011 Janette Powell, Director, Social Finance Social Finance is authorised and regulated by the Financial Service Authority FSA No:

2 MICHAEL... PORTSMOUTH 2

3 WHO ARE SOCIAL FINANCE? 3 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. Social Finance was formed with an overriding purpose to connect investment with need in a way that supports social progress.

4 WHAT IS A SOCIAL IMPACT BOND? 4 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. SOCIAL IMPACT BONDS ARE AN INNOVATIVE WAY OF ATTRACTING NEW INVESTMENT THAT BENEFITS INDIVIDUALS AND COMMUNITIES The financial returns investors receive are dependent on the degree to which outcomes improve. Social Impacts Bonds are a type of payment by results contract.

5 WHY DO WE NEED A SOCIAL IMPACT BOND? 5 The Social Impact Bond enables a shift in focus from crisis provision to preventative spend

6 SOCIAL IMPACT BOND CRIMINAL JUSTICE 6 Public Sector Service Users

7 SOCIAL IMPACT BOND CRIMINAL JUSTICE 7 Public Sector On going operating funding SIB Delivery Agency Investors Money drawn down evenly over project life Service Providers Service Users Host prison - HMP Peterborough operated by Sodexo Justice Services

8 SOCIAL IMPACT BOND CRIMINAL JUSTICE 8 Public Sector SIB Delivery Agency Investors Service Providers IA Service Users

9 SOCIAL IMPACT BOND CRIMINAL JUSTICE 9 Make payment based on defined outcomes Public Sector SIB Delivery Agency Financial returns dependent on outcomes Investors Improved social outcomes Reduced public sector costs Wider benefits to society Service Providers IA Service Users Reduction in re-conviction

10 QUESTION 10 Is it right that anyone should benefit financially from the work done with vulnerable members of our society?

11 11 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 coordinated service to prisoners. Financial returns to investors are funded by the Ministry of Justice and the Big Lottery Fund and are based on reduced reoffending. If reoffending does not reduce, then investors will receive no recompense.

12 PRISON INDUCTION ONE ASSESSMENT DAY OF RELEASE Prison staff Connections Prison staff Caseworker Caseworker Caseworker Family worker Caseworker Family worker Volunteers Family worker Volunteers Volunteers Community ONE SERVICE - MULTI AGENCY INTERVENTIONS 12 HOUSING DRUG TREATMENT HOUSING DRUG TREATMENT HOUSING DRUG TREATMENT TENANCY SUPPORT ATTITUDES HEALTHY LIVING COUNSELLING GYM FAMILY DENTIST COUNSELLING EMPLOYMENT EDUCATION WORK FAITH HEALTHCARE FINANCE ID MEDICATION MENTAL HEALTH BENEFITS DEBT EMPLOYMENT MENTAL HEALTH TRAINING FAMILY BUDGETING EMPLOYMENT TRAINING FAMILY FAITH GROUPS FRIENDS LIFE SKILLS TRAINING FAMILY VOLUNTEERING HOBBIES COMMUNITY GROUPS Example offender journey

13 HOW IS THIS DIFFERENT TO HOW THINGS WERE? 13 There was no funding available to work at scale with short-sentence prisoners because they are not a statutory group. Government contracts tend to specify certain services without considering the individual nature of the client. Outputs based contracts encouraged a focus on quick wins for individuals and not on sustainable rehabilitation. Contracts do not provide organisations with incentives to work with the offenders who cause the volume of crime. Working with a prolific offender is expensive and there is a low probability of success. Short term contracts did not allow any time to learn and evolve. Short-sentence offenders were rarely inside prison long enough to benefit from the resettlement programmes on offer, including drug recovery treatments, training and skills courses. Funding was often restricted to the financial year which encouraged a feast and famine approach.

14 ONE SERVICE - CASE STUDIES 14 PATHWAYS TO RE-OFFENDING 88% of our clients are unemployed on release. Many are not claiming benefits or have to wait several weeks before they have any income. MEET AT THE GATE Around 70% of prisoners ask to be met at the gate. RELATIONSHIPS Whilst in prison we give advice on how to handle relationships when they get home. COMMUNITY VOLUNTEERS Community Volunteers give up an hour a week to mentor our clients. The rewards are great for both.