While the US is reporting the failure of its first Social Impact Bond: a SIB project designed to reduce recidivism rates among adolescent inmates, EVPA member Social Finance UK has reported that two of its Social Impact Bonds have performed above expectations, triggering a return of investor capital earlier than expected.
Social Impact Bonds: US vs UK
Investors in the two contracts include EVPA members Big Society Capital, Bridges Ventures, CAF Venturesome, Esmée Fairbairn Foundation and the Impetus-Private Equity Foundation. The project started in 2012, with the UK Department of Work and Pensions Innovation Fund awarding two Social Impact Bond contracts worth £7 million to fund positive social outcomes for young people on the Adviza and Teens & Toddlers programmes.
Teens & Toddlers and Adviza deliver innovative programmes to address the root causes of young people becoming NEET (not in education, training or employment). The two projects work with 14-15 year olds who are identified as having on average three to four risk-of-NEET indicators, including poor school attendance, disruptive or antisocial behaviour, family or mental health issues and low educational attainment.
Defined targets triggering the outcomes payment included improved attitude, behaviour and school attendance, educational and life skills qualifications and employment
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