Councils consider social impact bond to reduce number of children in care

By David Ainsworth, Third Sector Online, 10 January 2011

Plans to reduce number of children in care

Plans to reduce number of children in care

Social Finance says bonds might be introduced in Liverpool and Essex

Two local authorities are thinking of using social impact bonds to improve family support services, according to Social Finance, the consultancy that devised the bond.

The first pilot of the bond, which pays investors according to the success of projects, has already begun with a £5m project to prevent reoffending in Peterborough.

Toby Eccles, development director of Social Finance, told Third Sector that Liverpool City Council and Essex County Council were also considering using the bond.

"We're now working formally over the next six months with the two county councils to look at whether the social impact bond can be used to improve outcomes for vulnerable children," he said. "The product would likely use a payment based on a reduction in the number of children in care."

The social impact bond works by a charity or other third sector organisation entering into a contract with a council or government department, which agrees to pay for improved social outcomes in a target group, over a target time period.

In the new cases, the targets be reducing the number of children in care in a part of Liverpool or Essex after a number of years. The better the results, the more the council would pay out.

The charity uses the contract to raise finance from social investors. If the charity hits its targets, its investors make a profit.

Related Articles

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest jobs Jobs web feed















90 per cent funded training for third sector: Collaborative Leadership Programme

  • Date: Thu 13 Mar 2014 - Fri 16 May 2014
  • Venue: Leeds

People power

  • Date: Wed 30 Apr 2014 - Wed 30 Apr 2014
  • Venue: London

The Acevo Gathering of Social Leaders: One Year to Go

  • Date: Wed 7 May 2014 - Wed 7 May 2014
  • Venue: London

Third Sector Insight