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On Probation

Paying for the wrong results?

The MoJ published their initial payment mechanism for the Transforming Rehabilitation contracts back on 3rd June and asked for feedback. They are currently developing a final version which should be published before the procurement process starts – scheduled for 23rd August. Last week, the Social Market Foundation published a paper by its director Ian Mulheirn which analysed the payment mechanism in forensic detail and came up with the devastating conclusion that : The payment mechanism encourages providers to cut spending on services and allow reoffending to drift marginally upwards.

Payment by Results

The risky business of Social Impact Bonds

Will SIBs become a mainstream way of funding public services? My take on new Social Market Foundation report. “Effective transfer of financial accountability is the holy grail of public service reform” The main mechanism for this has been payment by results with which Social Impact Bonds are closely associated. Social Impact Bonds and PbR appear to be a good fit:

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