1. “A lot of effort but worth it”
Commissioners’ experiences of social impact bonds
The National Commissioning and Contracting Training Conference
Hayes Conference Centre, Derbyshire
9 June 2016
James Ronicle, Ecorys UK & Neil Stanworth, ATQ Consultants

2. Services / interventions
What is a Social Impact Bond?
In simple terms, SIBs are a form of Payment by Results, where the upfront capital is provided by an external investor
Provider has to source working capital to fund services until payments are made
Payment for outcomes
Commissioner
Provider
Specification of outcomes
Services / interventions
Diagram source: ATQ Consultants

3. Services / interventions Up-front capital to fund services
What is a Social Impact Bond?
In simple terms, SIBs are a form of Payment by Results, where the upfront capital is provided by an external investor
Commissioner
Provider
Specification of outcomes
Services / interventions
Social Investors
Payment for outcomes
Up-front capital to fund services

4. There are 32 SIBs in the UK in a range of policy areas
SIB Development SIBS in the UK
There are 32 SIBs in the UK in a range of policy areas
And more to follow:
- CBO has funded 4, with a further 41 to follow
- Life Chances Fund is £80m, not sure how many SIBs but will be quite a few
-Other government departments looking into them (e.g. DCLG)
Source: Cabinet Office

5. SIB Development SIBs to support Children in/on the Edge of Care
Many argue that there is a strong business case for a SIB for children in/on the edge of care
Essex SIB: Children at risk of going into care
Essex CC (ECC) has higher than average no. of young people in care. Care costs £20k - £180k per year / per individual
Big Society Capital & Bridges Ventures provide £3.1m loan
Loan funds AfC to provide MST for 380 young people at risk of entering care over 8 years. They aim to divert 110 from care.
Payments made when child is diverted from care
ECC anticipate saving £17.3m, of which up to £7m will be paid in outcomes payments – net saving of £10.3m
Investors could receive up to 8 – 12% annual interest
Source: Cabinet Office