The Peterborough Pilot Social Impact Bond

This case study1 will examine the emergence, development and global variations of a new financing mechanism for welfare services, the Social Impact Bond (SIB). The case will define SIBs in their historical context and will explore the first, pilot, SIB in Peterborough in the UK in detail. In addition, it will consider innovations introduced by other examples from the UK, Australia and the USA. Conclusions will set out the key innovations and contributions of the SIB form and will also consider obstacles and considerations in terms of the future expansion and development of this novel contractual model. Specifically, this case aims to enhance the reader’s knowledge about: - How an environment of government reform encourages the development of new contracting models - How social purpose organizations and social enterprises that deliver welfare services are involved in new relationships with government - How innovative social finance investment opportunities grow the social finance market - How social impact metrics can support new funding opportunities and improve organizational performance in terms of social outcomes - How long-term contracts and flexible funding can enhance strategic flexibility in welfare services delivery that enhances overall performance - How the involvement of several stakeholder groups in the pursuit of a single outcome creates a unique set of benefits and challenge