By Mark Smulian | 28 August 2013
The Local Government Association has been selected as one of two organisations to work with those developing Social Impact Bonds and similar payment-by-results schemes, the Big Lottery Fund has announced.
Social Finance – a body that assists social enterprises – has also been chosen. It describes itself as a body that helps to devise the financial structures and raise the capital to provide sustainable revenues and investment to charities and social enterprises.
Successful bond schemes could benefit from the £40m Commissioning Better Outcomes Fund or the Cabinet Office’s £20m Social Outcomes Fund.
The LGA and Social Finance will provide support, including technical guides, online tools, workshops, and diagnosis of further development needs.
Sharon Taylor, chair of the LGA’s finance panel said: ‘Our members are keen to look at how Social Impact Bonds can be used to tackle issues of concern to residents, such as truancy, criminal reoffending and antisocial behaviour.
‘The injection of money from the Big Lottery Fund provides the impetus to get the Social Impact Bond market off the ground.’
Nat Sloane, Big Lottery Fund England chair said: ‘The overall purpose of the contract is to ensure commissioners are supported in their understanding and development of robust Social Impact Bond proposals so that better outcomes are commissioned for people and communities most in need.
‘We also want to encourage the engagement of [third sector] delivery providers and potential investors. The contract is therefore an essential piece of architecture that will ultimately contribute to the Big Lottery Fund’s goal to develop the social investment market in a way that supports charities and social enterprises to become more sustainable and grow so they can better serve those most in need.’
