Transforming Rehabilitation

Harriett Baldwin Excerpts

Wednesday 9th January 2013 Commons Chamber

[Chris Grayling]

I do not think that the hon. Gentleman quite understands what we are trying to achieve. We need the qualifications and experience to protect the public from harm, but in my view the former offender turned good—the former gang member gone straight—is the best way of making sure that a young person coming out of jail does not go back to the same ways. This is about getting a mix of high qualifications, of the kind we find in our public probation service, in people who have turned away from crime and who are helping those who might end up in a place where they once were.

[Harriett Baldwin (West Worcestershire) (Con)]

I draw the House’s attention to my historic interest in social investment.

I welcome the opportunity for charities and social enterprises to get more involved in this area. Payment by results is very hard on working capital. Will the Secretary of State outline what his Department is doing to increase access to finance for charities and social enterprises—for example, the nascent social impact bond sector?

[Chris Grayling]

Let me start by saying that I do not expect this to be a 100% payment-by-results contract. There is a need to enforce orders of the court, so I do not expect to be able to put 100% of the fees that we pay on a payment-by-results outcome basis. However, I do want providers to be at risk; I want them to have their money on the table to deliver excellence for us, but I absolutely accept my hon. Friend’s point. That approach will make the cash flow situation less challenging than it would be in a 100% situation.

I have already held and will continue to hold meetings with people in the social investment sector to encourage them to look at the measure as a real opportunity. This is the kind of area in which social investment in this country should be involved. There is a clear public benefit and the possibility of earning a return. I absolutely hope and believe that our social investment sector will row in behind it.