Further to this post about the social impact bond (SIB) pilot at Peterborough prison, Third Sector Online is carrying an interesting story today which suggests that the SIB model may be dropped for the third cohort of offenders to be supported under the programme.
Discussions are apparently underway with the Social Investment Business (which originated the scheme for the Ministry of Justice) to devise alternative funding arrangements.
It is difficult to gauge the full significance of this based on the coverage so far, but that it is significant is beyond doubt. Peterborough was the first and most widely publicised SIB and I believe is the first to have already been extensively evaluated. And while not the largest SIB if judged by value, it has been a huge project both in terms of investment and labour power. I don’t think it is reading too much into this to say that there may be implications for the future of the SIB model, certainly in public services.