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