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New boost to help Britain’s most vulnerable young adults and the homeless
A radical approach to solving complex and costly social problems, which will also save the taxpayer millions, has been given a cash injection by the Cabinet Office recently.
Two new Social Impact Bonds, which will support teenagers at risk of going into care and help rough sleepers, are being introduced alongside the Social Outcomes Fund. This new £20 million fund will facilitate even more Social Impact Bonds, as part of the latest stage in the Government’s drive to tackle social problems through payment by results.
Social Impact Bonds, the first of which was developed by Social Finance, allow private investors and philanthropists to invest in a project to address a specific social problem; they are then only paid a financial return if the project is successful. This is a way of blending financial return with a social impact and an approach that is good for the Government because the financial risk is taken by the investor and not the taxpayer, as payments are only made for success. It’s also good for the voluntary sector, as it opens up many more opportunities for Social Enterprises and charities to deliver public services.
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