Already this Government has created 31 social impact bonds – more than the rest of the world put together
The evidence is very positive. The Peterborough prison bond reduced offending by 8.4% for the first thousand short sentence prisoners that went through it. DWP’s Innovation Fund has generated 16,000 positive educational outcomes for young people. The rough sleeping bond in London has reduced rough sleeping by 30%.
These bonds mean providers and investors have a joint social mission – the incentives of all parties are aligned to achieve long-term sustainable outcomes for the worst off.
There is more to this than just creating social impact bonds, we also need the right market infrastructure in place too – which is why we established Big Society Capital, the world’s first social investment wholesaler; and introduced a social investment tax relief, forecast to generate up to £480 million over 5 years.