can social impact bonds influence social policy for the better?
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Can Social Impact Bonds influence social policy for the better?
Bridges Social Sector Funds
April 2015
Innovative investments that make a difference
Strictly Private and Confidential
0%
25%
50%
75%
100%
1870 1890 1910 1930 1950 1970 1990 2010
France
UK
USA
“Capital in the 21st Century”, Thomas Piketty, April 2014
What is the social state in an OECD country?G
overn
ment
spend a
s %
of N
ational In
com
e
UK
£750bn
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So what is the problem? Rising demand…
UK Social Services demandOECD Heathcare demand
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“Enough is enough”, Centre for Social Justice, June 2014
So what is the problem? … poor outcomes
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What is the problem?
Typical outcomes for neglected children:
• Less likely to succeed at school
• Less likely to find a job
• More likely to commit a crime
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What is the cost?
92,000 ‘Looked After Children’ in the UK
Foster Care £40,000 p.a.
Residential care home £100,000 p.a.
Secure children’s home £200,000 p.a.
Average reoffending rate 73%
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The state traditionally delivers services itself
State
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Sometimes the state commissions another entity to deliver activity
Outcomes
Activities
State
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What if we could pay for outcomes?
Outcomes
State
££ Innovation
Delivery
Expertise
Capital Enterprise
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Web: iaamadoption.org Twitter: @iaamadoption
An example of social entrepreneurship
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Example: the IAAM Adoption programme
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Up-front commitment from
Investors
6 charities will find, train and support families
Up to 2,000 children could be placed
Example: the IAAM Adoption programme
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54,000
750,000
Cost to find a family Cost of foster care
Cost per child (£)
Example: the IAAM Adoption programme
Our goal over the next ten years is to help 2,000
children find loving, stable families.
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Will SIBs change social policy for the better?
Ask them in 10 years’ time…
15
Bridges Ventures
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London, W1H 7BP
Telephone +44 (0) 20 7262 5566
Email [email protected]
www.bridgesventures.com
Contact us
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