On Social Impact Bonds

Social Impact Bonds are quite an innovative 'payment by results' approach which includes up front investment - you can find good explanations of SIB on the Social Finance and  Young Foundation websites

However, you could paraphrase SIBs as: 'PFI meets Big Society'. Similarities being the drawing in of investment to drive an outcome-based delivery which, had the public sector not been starved of cash, would normally have been public sector funded and managed. They should encourage innovation and be user focused in design (something which we have discussed over the last few days).  Of course investors expect a return, which they are due if the designed intervention works. That return can be a long way away.  Some big issues must be that:

Procurement look Big in the Public Services (Social Value) Act 2012

In the firing line of criticisms regarding penalising the Third Sector through the Budget's tax regime and criticism that the Big Society aspiration has been swallowed up by the austerity strategy, I would have would have had a fanfare announcement of the The Public Services (Social Value) Act 2012. But I suspect many of those who need to operationalise the Act have missed something which should be fundamental to public procurement's contribution.  I don't think I even noticed a reference in Supply Management; CIPS's oracle! Is the absence of that fanfare indicative of a lack of ownership or scepticism that its potential will be realised?

Is the Act, which gained Royal accent on 8 March 2012 although yet to become law, is in danger of going the same way as so many strategic initiatives and disappearing off the procurement radar?  So, for example, when I ask the average UK public procurement person about the impact of the Welling-being Powers, The Compact, Eight Principles of Good Commissioning and the Small Business Friendly Concordat, I see that blank stare which says: 'I know nothing, and have done nothing, about embedding those in procurement policy, strategy, practice and performance management' (If you want a copy of my research paper on this, just let me know).  We have also considered some of the hollow strategic commitments relating to sustainable procurement.

Let's try to ensure that the Social Value Act does not end up the same way but is seized by procurement professionals as an opportunity to reposition procurement strategically and also 'make a difference'.

The Act is so simple and concise my blog risks having a bigger word-count than the Act itself. So, in a nutshell what does the Act say?