St Giles Trust launches first social impact bond funded project

The much talked about social impact bond finally became a reality last Friday (10 September), when St Giles Trust launched its Peterborough Project - the first programme to be funded by the 'payment by results' innovation.

Speaking at the launch, prisons minister Crispin Blunt (pictured) said: “Our priorities are to punish offenders, protect the public and provide access to justice.  But we want to initiate a more constructive approach to rehabilitation and sentencing, and re-think whether putting more and more people into custody really does make people safer.  This payment by results pilot is both innovative and imaginative. I am delighted to be launching it."

The project aims to cut re-offending among prisoners serving less than 12 months by offering intensive support before and after release, with a focus on accommodation and education and training support.

It is part of a funding initiative by Social Finance, who will use a social impact bond to finance the project. It offers investors a return on their investment, paid by the Ministry of Justice, if the project achieves its target of reducing re-offending among the targeted group by 7.5%.

Rob Owen, chief executive of St Giles Trust, said: “St Giles Trust has a proven track record in reducing re-offending amongst prison leavers.  An independent evaluation of our work earlier in the year proved that we reduced re-offending by an additional 40% and saved the taxpayer £10 for every £1 invested in the service.   This was working with the clients who posed medium to high risk of re-offending.”

Revolving Doors wishes St Giles Trust every success in its important initiative and hopes that some of our partnership and development pilot projects will also provide models for future services  funded by social impact bonds.