1. Fostering Success through Social Impact Bonds & Payment by Results Contracts Rakesh Mistry Commissioning & Brokerage Manager David Oldham Chief Exec – Foster Care Associates

2. Children in Care Population Total CiC1939 Internal Foster Placements641 External Foster Placements661 External Children’s Home132 Internal Children’s Homes50 Other455

3. Children in Care – 1,939 In Residential Care- 182 Placed outside authority – 79 CiC more than 20 weeks in residential will tend to stay in residential care for a longer period Context

4. Current Provision Internal Fostering Internal Residential – 10 homes – 5 mainstream – 5 Disabled Childrens Block Residential Contract – 19 beds External Fostering Framework – 36 IFAs

5. The Service Step Down Fostering Migration from residential to fostering In residential care for 20 weeks Planned matching & transition The Provider – Core Assets Group

6. Innovation Social Impact Bond – Social Investment: Bridges Ventures Payment by Results Contract ‘Black Box’ commissioning approach Social Outcomes Fund – Project Evaluation

7. Commissioning Process Oct 2012 - Provider engagement Feb 2013 - Procurement Commenced – Black Box March 2013 - Tender Evaluation July 2013 - Competitive Dialogue (3 Providers) March 2014 - Contract Awarded – Begin Mobilisation July 2014 - Contract commenced Nov 2014 – First Young person placed

8. Nature of the contract Partnership between Birmingham CC and Core Assets (& Bridges Ventures) 4 year contract (+ 2 year option) 138 referrals over 4 years (+69) – historical analysis by BCC Referrals for young people 11-15 placed across the UK Target young people in residential placement for between 16 and 52 weeks Payment by Results – key outcome is placement stability after 52 weeks. Payment begins at point of placement Reward payment – final 3 rd Core Assets Project Manager co-located with BCC Deliver Cost savings of £39k per placement based on average weekly fee in first year of placement on an on-going basis provided success is maintained minimum saving £88k per annum

9. Nature of the contract Bridges Ventures (BV) using their Social Impact Bond Fund. A Social Impact Bond is: Financial tool to enable investors to invest in an opportunity to realise a return and make a social impact at the same time. Examples of the investors in the BV SIB Fund include: Big Society Capital, Omidyar Network and Panaphur BV are using the fund to pay the balance of the cost it will take us to deliver the service (on top of the element Birmingham are paying). If successful at week 53 BV then receive the Payment by Result payments from Birmingham City Council to cover the cost of service BV have funded and to generate the return for their investors. Core Assets need to evidence to BV the outcomes we are achieving so the investors can understand whether the desired social impacts are being achieved.

10. Eligibility Criteria Agreement to the move to foster care by; Young person Young person’s family (where appropriate) Birmingham City Council Social Worker Independent Reviewing Officer The young person’s Care Plan reflects the need for this type of Foster placement Young person’s recent behaviour / characteristics reflects; A positive attitude to being placed within a family. A positive attitude towards engaging or willing to engage in working towards school / college / work. A positive attitude to improving relationships/attachments with adults and young people. A positive attitude to understand their behaviour and the ability to accept structure as directed within the Foster Placement. An ability to develop empathy and attachments. All other relevant historical or current information from those working with the child.

11. Support System

12. A model that delivers success The model is dependent on the specific needs of the young person Phase Input Planning (up to 6 weeks)Matching and Planning processes Introductions to foster carers and the young person SettlementFortnightly Progress meetings 12 weeksUp to 20 hours of support over 12 weeks Intensive wrap-around support StabilisationMonthly Progress meetings 12 weeksUp to 10 hours of support over 12 weeks MaintenanceMonthly Progress meetings 28 weeksOngoing practical, therapeutic and educational support

13. Referral Route

14. Risks Young people Adding new placement to the young person’s care history Destabilising current placement stability Placement breakdown Birmingham City Council If No young people placed – they continue their care career in residential care No savings on the cost of residential placements Only pay for placements received small risk Core Assets Reputation Right foster carers in the right place with the right skills Matching young person to the right placement Placement breakdown Bridges Ventures Financial risk – pay for foster carer retainers and services focused on outcomes No risk if no placements - apart from “backing the wrong horse”!

15. HEADLINE PERFORMANCE MEASURES Number of referrals to the service - 34 (12 removed by BCC) Number of Foster Care placements - 7 Number of Foster Care placements made - 9 ( 2 ended) Number of Young People at Planning Stage - 1

16. Progress to date 9 young people placed (2 ended) 3 referrals did not progress to placement Early indication of positive outcomes in relation to Education attendance Reduced offending SDQ scores Savings for Birmingham City Council

17. Contact for more information Rakesh Mistry t: 0121 464 4198 e: rakesh.j.mistry@birmingham.gov.ukrakesh.j.mistry@birmingham.gov.uk Birmingham City Council Children’s Commissioning Team Richard Osborne t: 0121 675 1246 e: richard.s.osborne@birmingham.gov.ukrichard.s.osborne@birmingham.gov.uk Birmingham City Council Children’s Commissioning Team Mark Thomas t: 0121 675 1246 e: ofcbirmingham@coreassets.comofcbirmingham@coreassets.com Outcomes for Children Birmingham – Part of the Core Assets Group