The role of social innovation in improving the effectiveness of public policies Examples from the United Kingdom Joanna Hofman Warsaw,

2 To bold text: Use Futura Std Medium, and click B in formatting toolbar Overview Introduction Trends in social innovation and project examples from the UK Social innovation in public policies in the UK: –Social Impact Bond (SIB) at HM Prison Peterborough, Ministry of Justice –Innovation Fund, Department of Work and Pensions –Payment by Results (PbR) in drug and alcohol recovery, Department of Health Challenges and opportunities ahead

3 INTRODUCTION

4 To bold text: Use Futura Std Medium, and click B in formatting toolbar Mission: to help improve policy and decisionmaking through research and analysis Founded in1948 1,700 staff 900 researchers worldwide Expertise in healthcare, education, justice, defense… 8 locations worldwide (2 in Europe: Cambridge and Brussels)

5 TRENDS IN SOCIAL INNOVATION AND PROJECT EXAMPLES FROM THE UK

6 Scale and complexity of new challenges shape social innovation of the future Changes: 1.Demography 2.Immigration patterns 3.The growing middle class and the empowerment of individuals 4.The rise in inequality leading to vulnerability 5.Quick technological development Source: RAND Europe (2013 ) Trends and implications for social innovation: 1.Ownership to Access 2.Business Unusual 3.Digital Fabrication 4.The Rise of Information 5.Infinite Computing Source: Baas (2013) in CSI (2014)

7 To bold text: Use Futura Std Medium, and click B in formatting toolbar Code Club A network of volunteer-led after school coding clubs, teaching young people how to build digital products like websites, animations or computer games 2,469 Code Clubs, teaching over 34,000 kids Credit: Code Club, NESTA

8 To bold text: Use Futura Std Medium, and click B in formatting toolbar The Access Project Matches business volunteers with motivated students from disadvantaged backgrounds, helping them progress to top universities 13 London schools, working with up to 100 students in each school Credit: The Access Project, NESTA

9 To bold text: Use Futura Std Medium, and click B in formatting toolbar Peer Support by Diabetes UK Combined peer group support with input from health professionals and trained volunteers to assist patients with diabetes 400 volunteers support more than 5,000 patients Credit: Diabetes UK, NESTA

10 SOCIAL INNOVATION IN PUBLIC POLICIES IN THE UK

11 To bold text: Use Futura Std Medium, and click B in formatting toolbar Social innovation has been piloted in the UK in different policy areas using PbR and SIBs Drug and alcohol recovery (Department of Health) Education & employment (Department for Work and Pensions) Crime prevention and reduction measures (Ministry of Justice)

12 To bold text: Use Futura Std Medium, and click B in formatting toolbar SIB at Peterboroug h Prison In the UK, 63% of men who finish short-term prison sentences are back inside within a year for another crime. Social Finance Service providers Offenders discharged from prison Investors Investment funding Independent Assessor measures outcomes Ministry of Justice Report back results Payments dependent on outcomes – reduction in reconvictions Provide up-front funding Through the gate support Three cohorts of 1,000 offenders Control group created using PSM Target: 10% reduction per cohort, or 7.5% across the three cohorts Result: 8.4% in Cohort 1

13 To bold text: Use Futura Std Medium, and click B in formatting toolbar Risk factors: Non-attendance and disengagement from school Learning difficulties, poor literacy and numeracy Poor self-esteem, motivational, emotional and behavioural difficulties Support offered: In and out of school provision One to one and group work Action planning and target setting Activities to increase self-confidence, build mental resilience Innovation Fund In the UK, 963,000 people aged were Not in Education, Employment, or Training Ten SIBs provide support over10,700 disadvantaged young people (14+ years) Outcomes achieved: Improved attendance at school Improved behaviour at school Attainment of qualifications Entry into first employment Sustained employment of 26 or more weeks Credit: Big Society Capital

14 To bold text: Use Futura Std Medium, and click B in formatting toolbar PbR in drug and alcohol recovery Eight local areas pilot a new approach to commissioning and delivering drug and alcohol treatment Expected outcomes: Being free from drugs of dependence Offending Health and wellbeing Credit: PIRU The proportion of the payment linked to results differs between the sites: 5% on final outcomes 15% on interim outcomes 80% up-front 25% on final outcomes 25% interim outcomes 60% up-front 100% on outcomes

15 CHALLENGES AND OPPORTUNITIES AHEAD

16 To bold text: Use Futura Std Medium, and click B in formatting toolbar The evidence around the impacts of PbR schemes remains scarce Government commissioning in absence of evidence on (cost-) effectiveness is challenging Criticism: high transaction costs, outcomes metrics difficult to define By design, PbR and SIBs involve collecting evidence about outcomes and effectiveness What Works Centres address areas where there is pressing social need and major public spending but where evidence base is limited

17 The What Works Network uses evidence to improve public services NICE Crime reduction Local economic growth Ageing better Early intervention Education Endowmen t Foundation Core functions: Generate evidence synthesis Translate the evidence Evidence absorption Promote good evidence Credits: HMG, EEF