Published: 11th Aug 2014

Initial results from the world’s first social impact bond (SIB) were announced last week. The Peterborough SIB’s One Service achieved an 8.4% reduction in the reoffending of prisoners sentenced to less than 12 months. This result exceeded the 7.5% minimum required over the life of the project for investors (of which LankellyChase is one) to get their investment back, but fell short of the 10% stretch target needed to trigger an outcome payment this time around. Inevitably a great deal of the commentary that followed the results – including whether 8.4% was a  success or failure –  ranged along the battle lines drawn by the wider payment by results (PbR) debate. The landscape has changed radically since the SIB was first dreamt up, so that it gets cited as evidence for or against reforms that its creators could not have anticipated. The uses and abuses of its name have been … (To read the full article, subscribe below)