With low-level inmates prone to return to prison 60% of the time, conservatives in the United Kingdom are banking on a novel experiment to reduce the recidivism rate.

 

Through the use of a social impact bond, investors have committed £5 million ($7.7 million) to the St. Giles Trust, an organization with a track record of reducing recidivism by 40% among prisoners it helps. If the organization reduces by at least 7.5% the number of released prisoners who are arrested within a year, investors will receive a dividend. If not, they’ll get no return on their money. If the rate continues to drop, investors will get back up to 13.5%. The initial investors are charitable trusts and philanthropists.

 

Although the social impact bond fits the conservative approach of finding a way to get private funding for social programs, the deal was actually signed when the Labour Party was in power.

 

St. Giles Trust will work with inmates from Peterborough penitentiary by providing them with mentors after their release, employment assistance and drug rehabilitation.

-Noel Brinkerhoff, David Wallechinsky

 

Bond Project Aims To Cut Rate of Reoffending (by Nicholas Timmins, Financial Times)

Private Backers Fund Scheme to Cut Prisoner Reoffending (BBC News)