Wales Wellbeing Bond Matthew Brown Communities Investment Manager Best Practice and Innovation Board 24/07/13

Wales Wellbeing Bond – Term coined by WCVA to promote the design of new innovative ways of delivering public services that utilise the skills of the third sector and newly available social investment. Wales Wellbeing Bond encompasses a range of delivery approaches that can unlock innovative third sector delivery of public services. Innovative delivery approaches backed by innovative financing arrangements.

Wales Wellbeing Bond Possibilities – Upfront Investment – The providing of finance to allow costly capital (or revenue) investment prior to delivery of contract Cashflow Investment – Allows organisations to carry payment terms such as quarterly in arrears or payment by results Step in Investment – Supports service re-organisations to go ahead that have been halted by initial budget gaps Social Impact Bonds - ....

Social Impact Bond (SIB) – SIB’s seek to meet several objectives of public and third sectors – Expansion of third sector delivery of public services at its heart Designed to improve services and reduce public sector expenditure to allow re-investment and create cost savings Enhanced service delivery creates population wellbeing impact Attract outside investors to pay for initial activity 4

Third Sector Organisations Preventative Programme Investors finance allows Third Sector Organisations to undertake preventative programmes with a target client group Re-active Programme Public authorities pay for costly re-active services Client Group Co-ordinator Public Authority Third Sector Organisations Investor gets repaid from savings made by Public Authority Communities Investment Fund 5

Potential SIB Activity – The SIB model is not limited to any particular service area but ‘fits’ more easily to areas with discreet and easily identifiable cash expenditure that could be saved - Possible activity – Improving mental health provision Increasing in-county and in-Wales vulnerable adult/child accommodation Hospital transport Recovery phase rehabilitation services 6

Communities Investment Fund (CIF) - CIF has money ready to invest in Wales Wellbeing Bond opportunities. CIF can currently invest in the Convergence area of Wales where there is an opportunity for that investment to be repaid. But good conversations have been had with funders to support investments outside of Convergence. BIG Lottery in support of Wales Wellbeing Bond and keen to explore involvement in investments that come forward. 7

Look forward to discussing with you all. Last Thoughts – Been designed in the knowledge that – Public authorities are under huge financial strain Need to be innovative in redesign of services Third sector organisations want to deliver more CIF is ready to invest in WWB activity and keen to work with partners Look forward to discussing with you all. 8