The Government is launching a new trial scheme today to raise £40m of investment to help get families out of poverty.
The social impact bond scheme is being run in four local authority areas – Westminster City Council, Hammersmith and Fulham LBC, Birmingham City Council and Leicestershire CC – and aims to attract private investors to help fund schemes to tackle anti-social behaviour, crime and poor education.
The bonds will fund intensive interventions, which if judged to be successful, will be repaid by the taxpayer with a decent return.
The first interventions should begin in Spring 2012.
'We want a stronger sense of responsibility across our society and to give people working on the frontline the power and resource they need to do their jobs properly,' said minister for civil society, Nick Hurd.
'Social Impact Bonds could be one of many Big Society innovations that will build the new partnerships between the state, communities, businesses and charities and focus resources where they are needed.'
Children's minister,Tim Loughton, said: 'Family intervention demonstrates that the lives of children and young people can be turned around when their families, who often have many complex problems, are targeted intensively.
'This is also a more efficient way for local authorities to work, as evidence shows that fewer children are taken into care or excluded from school.'
