Category: Impact investing
Bodies in talks with UK and US governments on potential Bodies in talks with UK and US governments on potential Bodies in talks with UK and US governments on potential
One of the prominent effects of Covid-19 has been job losses globally. In the US, the unemployment rate jumped in April last year to a level not seen since the 1930s — and still stood at almost 6% in May this year, compared with 3.5% in February 2020.
Non-profit Social Finance US was focusing on tackling unemployment just before the pandemic escalated through ‘career impact bonds’. As the US gears up to fund a post covid recovery, early stage talks are underway on whether these and other types of impact bonds can play a role, and similar discussions are being held in the UK.
Impact bonds, which celebrated their 10th anniversary last year, have had a shaky history. The first-ever social impact bond focused on tackling recidivism in UK city Peterborough, was abruptly cut short after a change in government policy. It was a similar story for the first social impact bond in the US, launched in 2012. It also focused on tackling reoffending, w…