MoJ kickstarts second payment by results deal

17 October 2011

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17 October 2011 | Angeline Albert  

Buyers at the Ministry of Justice (MoJ) have launched a second ‘payment by results’ contract to give suppliers a financial incentive to reduce prisoner reoffending rates.

The £18 million-a-year contract with private sector supplier Serco began this month. It stipulates that Serco must deliver a 5 per cent reduction in reconviction rates among offenders released from HMP Doncaster in each year of the pilot or 10 per cent of the supplier’s annual revenue will not be paid. If Serco achieves this, more than 15,000 offences a year could be avoided.    

In order to hit the goal, Serco has agreed deals with voluntary sector and social enterprise partners - Catch22 and Turning Point - who will deliver rehabilitation services such as training courses and housing advice both within the prison and in the community.

The MoJ’s four-year trial with Serco at HMP Doncaster is one of two payment by results pilots it has created. HMP Peterborough, run by Sodexo, is part of a ‘Social Impact Bond’ pilot delivered by voluntary sector organsiation Social Finance, in partnership with St Giles Trust. SocialFinance has raised money on the investment market to pay for services to reduce reoffending. Services such as training courses and mentorship are delivered through St Giles Trust.                              

MoJ director of procurement Vincent Godfrey, said: “We are constantly reviewing progress made on the payment by results pilots. It takes more than two years for the first results to become available, since the offender must be monitored after release.”    

The pilot is one of six announced in the government’s Breaking the Cycle green paper in December 2010.

Richmond upon Thames, London (Greater)
Falmer, Brighton
£33,797 rising to £40,322 per annum
University of Sussex
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