Social Impact Bonds (SIBs)

SIBs are a new vehicle to tackle complex social challenges – payment by results contracts with new interventions delivered by the third sector and funded by social investors

Insight

Perducta is working to develop Social Impact Bonds that will improve the outcomes for those groups in the community least well provided for by existing services and whose challenges are the most intractable.

Our ambitions to develop our own profile as a social investor is realised by the opportunity to support commissioners in Local Authorities and Clinical Commissioning Groups in conceiving interventions that will change lives.

Our team comprises experts in social policy, education and public service delivery who understand the particular and specific challenges presented by a rapidly changing model of public service delivery.

Process

There are currently only around 15 Social Impact Bonds operating in the UK but there are many areas of public service delivery that could benefit from this initiative with the right support. We are in conversations with both funders and commissioners presently to help take their ideas for interventions from concept to delivery.

Perducta can offer support to commissioners through:

  • business case development;
  • needs analysis data analysis and ethnographic studies;
  • management of soft market testing with funders and providers;
  • working with third sector organisations to prepare them for delivering services;
  • programme and project management;
  • procurement;
  • transaction support;
  • contract monitoring;
  • partnership facilitation;
  • programme evaluation.

Perducta will seek revenue funding to support the development of the business case from various sources including the Big Lottery Fund and the Cabinet Office.

Outcomes

Central to the delivery and success of Social Impact Bonds is metrics that evidence return on social and financial investment – quantifiable, enduring improvements in outcomes for the people and groups targeted. These carry the potential for commissioners to manage demand through earlier interventions. Specific areas we are currently investigating for their SIB potential include childhood obesity, autism, youth homelessness, the mental health of veterans, dementia and mental health.