Payment by Results and Social Impact Bonds in the UK

Albertson, Kevin; Fox, Chris; O’Leary, Chris; Painter, Gary; Bailey, Kimberly; Labarbera, Jessica

doi:10.1332/policypress/9781447340706.003.0003

Cited by 23 publications

(79 citation statements)

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“…Fraser et al [77] provided an extensive review of SIB literature by identifying three main narratives: "a public sector reform narrative located within broader theories of New Public Management (NPM); a private financial sector reform narrative located within broader theories of social entrepreneurship; and a cautionary narrative skeptical of public and financial sector developments such as NPM and social entrepreneurship, and thus of SIBs" (p. 5). The first narrative analyzes SIBs as an extension of outcomes-based contracting in public services [78]. The second sees SIBs as a new opportunity for the private financial sector to gain increased access to public funds [79] and, at the same time, as a mitigating factor against the anti-social, dangerous aspects of financial capitalism in [80].…”

Section: Social Impact Bonds (Sibs): Overviewmentioning

confidence: 99%

Business Models for Sustainable Finance: The Case Study of Social Impact Bonds

et al. 2019

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Business models for sustainability (BMfS) are relevant topics on research agendas, given their orientation toward sustainability issues. However, traditional versions of these models are often ill-equipped at solving complex social problems. Cross-sector partnerships for sustainability (CSPfS) have been recognized as a new paradigm that mitigates the failure of traditional models. Impact investing, and social impact bonds (SIBs) in particular, represent an interesting field of research in innovative business models for sustainable finance, even though the literature does not consider SIBs within this broader field. We propose an exploratory study based on qualitative methods aimed at conceptualizing SIBs within the framework of BMfS and understanding how SIB collaboration varies across social sectors and geographical areas. Our study identifies three different models of SIBs characterized by the different degrees of collaboration between actors: (i) SIB as a fully collaborative partnership; (ii) SIB as a low-collaborative partnership; and (iii) SIB as a partially collaborative partnership. Our findings are useful to policy makers and practitioners involved in the SIB design, suggesting that a fully collaborative SIB model may stand a better chance of achieving the expected social impacts.

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Section: Social Impact Bonds (Sibs): Overviewmentioning

confidence: 99%

Business Models for Sustainable Finance: The Case Study of Social Impact Bonds

et al. 2019

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“…With regard to the UK, between 2017 and 2018, five new HIBs were launched, with programs spanning end-of-life care (Your Life Line 24/7) and HIV prevention and treatment (launched by the Elton John AIDS Foundation) to learning disabilities ('Positive Behavioral Support' (PBS) in Bradford) and diabetes prevention (Healthier Devon). Since 2010, the United Kingdom has developed a strategy framework for social investing [65,76,77] by developing and launching several market-building initiatives, such as an independent financial institution (Big Society Capital) that was established to develop and shape a sustainable social investment market. Since 2012, the Big Lottery Fund, which is a non-departmental public body responsible for distributing funds raised by the National Lottery for "good causes", and the Cabinet Office started working together to support the development of more innovative approaches to improve social outcomes by developing the Cabinet Office's Social Outcomes Fund and the Big Lottery Fund's Commissioning Better Outcomes with the joint mission to support the development of more SIBs [78].…”

Section: Insights From Case Studies: Main Research Findingsmentioning

confidence: 99%

“…In the same vein, in 2013 the project "Trailblazers", which included nine projects across England, received seed funding from the government's Social Enterprise Investment Fund to evaluate and potentially develop SIB projects [76]. Table 8 provides an overview of the nine projects.…”

Section: Innovation Fund (Department For Work and Pensions)mentioning

confidence: 99%

“…Moreover, both these countries have social finance intermediaries and social impact/outcomes funds that help the improvement of single deals. The role of "financial infrastructure" is also highlighted by Albertson et al [76], who clarified how social finance intermediaries were often able to provide technical assistance in the project development and implementation phases. At the same time, and as emerged from our cases, social outcome funds represent the primary funders of SIBs (especially in the UK), thus overcoming the need to find other financial resources.…”

Section: Building the Market Space: The Role Of Governmental Policiesmentioning

confidence: 99%

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Social Impact Bonds for a Sustainable Welfare State: The Role of Enabling Factors

Carè

Lisa

2019

Sustainability

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The financial crisis has put pressure on governments throughout the world to reduce deficits with severe budgetary cuts in many welfare areas by reinforcing the need to modernize social policies and optimize their effectiveness and efficiency. Social impact bonds (SIBs) have rapidly become one of the most innovative financial schemes used by governments to privatize the upfront costs of welfare interventions by reducing taxpayer expenditure. Our analysis focuses on healthcare impact bonds (HIBs) that correspond to the adaptation of SIBs to health programs and are considered to be a viable way to fund out-of-pocket and preventive programs, especially considering the recent cuts to public healthcare expenditure. By using an in-depth qualitative analysis of existing practices based on a multiple case study approach, this study contributes to the ongoing debate on the role of SIBs for the future sustainability of welfare systems by proposing reflections and indications for the scalability and replicability of SIBs. With respect to the existing literature, this paper provides a theorization of the main scaling ingredients to be considered for the development of the SIB market as a supporting financial approach for new and emerging welfare needs by also proposing suggestions and insights and serving as a guide for scholars and practitioners.

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“…English local authorities delivering the Troubled Families program are paid partly through demonstrating to central government that they have met program outcomes. As with Working Well , there is a combination of payment for each family enrolled in the program and on evidence of families being “turned around.” There are many criticisms of the principles of PbR and indications from the UK and elsewhere that it has not so far delivered on its promises (Albertson, Fox, O'Leary, & Painter, ). We found concerns at local level that PbR mechanisms in Troubled Families are not well aligned with Greater Manchester's ambitions for making Social Investment interventions more effective through better integrated services.…”

Section: Personalizationmentioning

confidence: 99%

Innovation and Social Investment Programs in Europe

O’Leary¹,

Baines²,

Bailey³

et al. 2018

European Policy Analysis

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There is a lack of empirical research around sub‐national Social Investment programs, and a lack of connectivity with social innovation. This paper addresses these gaps by drawing on twenty individual case study evaluations, conducted across ten EU member states as part of a larger Horizon 2020 project (Innovative Social Investment: Strengthening communities in Europe, grant agreement number: 649189). It does so through a “governance of activation” lens. We find that volunteering was a significant feature of many of the cases we researched, as both a means of funding Social Investment, and a means by which activation (through the development of human and social capital) might be achieved. Yet volunteering is a gap in the theoretical literature around Social Investment, and one that needs to be addressed. We also find that examining Social Investment at the local level provides a much more nuanced and complex picture than nationally focused extant research.

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Payment by Results and Social Impact Bonds in the UK

Cited by 23 publications

References 0 publications

Business Models for Sustainable Finance: The Case Study of Social Impact Bonds

Business Models for Sustainable Finance: The Case Study of Social Impact Bonds

Social Impact Bonds for a Sustainable Welfare State: The Role of Enabling Factors

Innovation and Social Investment Programs in Europe

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