Big Picture Learning: Priming Workforce Development for Impact Profit-Taking
This post is the second in a Q&A exchange on social impact bonds and pay for success finance with UK blogger Privatising Schools. The focus of this post is Big Picture Learning. For additional background on Big Picture in Philadelphia check out my previous post here.
Privatising Schools: Question 8
Let’s look at a specific example of a social impact bond in education. Here in the UK, as you know, we’ve had eight years of austerity, which has done great damage to public services, especially those provided by local government. But central government regularly launches new funds, targeting particular areas of social need: youth unemployment, homelessness, mental health, and so on. We’ve had the Innovation Fund, the Social Outcomes Fund and, most recently, the Life Chances Fund.
Now, the purpose of these funds – and the government is very explicit about this – is to underwrite new public-private partnerships which will find ‘innovative’ ways of financing public services. In other words, social impact bonds (see here). The Innovation Fund, which was run by the Department for Work and Pensions, served to ‘incubate’ ten SIBs.
One of the projects supported by the new Life Chances Fund will see a US charter school chain, Big Picture Learning, set up a school in Doncaster, a town in north-east England, in order to ‘test new ways of learning through a social impact bond’ (see here). The target group is students who have been excluded from mainstream schools and who would normally be in what we call ‘alternative provision’. Doncaster Council is working with a company called the Innovation Unit, which was spun out of the Department of Education back in 2006, to set up the SIB.
According to a report given to the leaders of Doncaster council:
By introducing this educational model via a SIB, […] we have the opportunity to test innovation due to the use of an outcomes contract and making funding for the services conditional on achieving results. The Social Investors (still to be identified) will pay the provider at the start, and then receive payments from the Doncaster Metropolitan Borough Council (the commissioner) based on the results achieved by the project via a Special Purpose Vehicle (SPV) or other appropriate mechanism.
By introducing this educational model via a SIB, […] we have the opportunity to test innovation due to the use of an outcomes contract and making funding for the services conditional on achieving results. The Social Investors (still to be identified) will pay the provider at the start, and then receive payments from the Doncaster Metropolitan Borough Council (the commissioner) based on the results achieved by the project via a Special Purpose Vehicle (SPV) or other appropriate mechanism.
Can you unpack this for us?
My Response:
It is interesting that the first education social impact bond in the UK is with Big Picture Learning, because I’ve been following them for several years. Big Picture started in Rhode Island in the mid 1990s and was incubated in the Annenberg Institute at Brown University. Their 990 tax form from 2001 states that among their “program service accomplishments” is to Continue reading: Big Picture Learning: Priming Workforce Development for Impact Profit-Taking – Wrench in the Gears
