Two new social impact bonds have been launched with support from the Cabinet Office’s Social Outcomes Fund, which co-funds SIBs alongside other public sector contractors.
One bond, launched by the Consortium of Voluntary Adoption Agencies, a membership organisation for UK adoption agencies, will follow a different model from that of the traditional SIB.
Instead of a single public body being responsible for payment if the charity succeeds, the bond will be funded by a large number of local authorities.
The bond, which is backed by £1m from the Social Outcomes Fund, will fund a scheme to connect potential parents with children in need of adoption who are harder to place. Local authorities will pay up to £52,500 for a successful adoption, in several instalments that will conclude after the placement has lasted for two years.
The scheme will aim to place about 2,000 children with families over 10 years.
The CVAA hopes to raise £5.2m from social investors to pay for the initial operation of the scheme. Investors will receive 4 per cent a year, together with a final payment of up to 9 per cent of their investment.
The other bond, worth about £9.3m, will support Manchester City Council in diverting children from care, and will receive £800,000 from the outcomes fund. It will aim to help 95 children in the local authority area.