WEBINAR INTRODUCTION TO COMMISSIONING BETTER OUTCOMES, SOCIAL OUTCOMES FUND AND THE SOCIAL FINANCE AND LOCAL GOVERNMENT ASSOCIATION SUPPORT CONTRACT

Transcription

1 WEBINAR INTRODUCTION TO COMMISSIONING BETTER OUTCOMES, SOCIAL OUTCOMES FUND AND THE SOCIAL FINANCE AND LOCAL GOVERNMENT ASSOCIATION SUPPORT CONTRACT 17 TH OCTOBER 2013 Tom Symons UNCLASSIFIED Social Finance is authorised and regulated by the Financial Conduct Authority FCA No:

2 AGENDA 2 Introduction to Commissioning Better Outcomes and Social Outcomes funds Social Investment a short history Social Impact Bonds an introduction The Engagement and Support services overview Developing a Social Impact Bond the commissioner journey What to expect from each aspect of the service The workshops The intensive support The needs assessment Where to go for more information Question and Answer session UNCLASSIFIED

3 BIG LOTTERY AND CABINET OFFICE FUNDS 3 The Big Lottery Fund have launched the 40m Commissioning Better Outcomes to support local commissioners to develop Social Impact Bonds (SIBs). This forms part of their overall strategy to grow the social investment market in the UK and sits along side the Cabinet Office s 20m Social Outcomes Fund. Commissioning Better Outcomes fund Social Outcomes Fund Big Lottery Fund 40m up to 3m of this has been set aside for development funding for commissioners Available to commissioners in England only Cabinet Office 20m Available to commissioners in England only What will the funds cover? a top-up to commissioners outcomes payments could represent: non-cashable savings or benefits to other public sector commissioners development funding - for commissioners to purchase technical support to develop their Social Impact Bond (available to commissioners bidding to either fund) Outcomes payments no minimum or maximum funding available average amount of funding is expected to be around 1 million expected that the average contribution to be around 20% of the total outcomes payments. Development funding between 10,000 and 150,000 of development funding Single two-stage application process single application form and entry form for both funds: 1. expression of interest Outline of proposal 2. Full application Detailed proposal

4 EVOLVING UK SOCIAL INVESTMENT MARKET The Big Lottery Fund and Social Finance have been working to develop the social investment market since This sits alongside Government s work to support the growth of the market. Social investment is the provision of capital for social as well as financial returns The UK social investment market comprises of a number of financial intermediaries and funds, as well as a diverse pool of investors SIBs are a form of outcomes based contracting which use social investment to fund programmes to address social needs Trusts and foundations are core to the social investor landscape but recently we have seen local authorities, community foundations and housing associations also investing in SIBs Bridges Social Entrepreneurs Fund launched

5 WHAT IS A SOCIAL IMPACT BOND? 5 Social Impact Bonds invest in preventative services to improve social outcomes (1) Public sector commissioners commit to pay for improved social outcomes for a target population (2) On the back of this contract, investment is raised from social investors This investment is used to provide working capital for intervention services (3) Social outcomes are measured over time Investors are repaid only if desired outcomes are achieved Investors risk losing their money if the intervention does not deliver the desired outcomes The greater the improvement in outcomes, the greater the financial return to investors

6 CASE STUDY: THE PETERBOROUGH SOCIAL IMPACT BOND TO REDUCE REOFFENDING 6 The Peterborough pilot SIB draws together investors, commissioners and service providers INVESTORS Social need HMP PETERBOROU GH (SODEXO) 5 million Return depends on success SOCIAL IMPACT PARTNERSHIP Payment based on reduced conviction s MINISTRY OF JUSTICE/ BIG LOTTERY FUND Reduction in re-offending Commissioner Target population Interventions Evidence base St. Giles Trust SOVA MIND Ormiston Trust Other Target outcome Providing specialised support pre- and postrelease to high/medium risk clients Providing volunteer support pre- and postrelease to low risk clients Low level mental support to prisoners while they are in prison and post release Support to prisoners families while they are in prison and post release Support needed by the prisoner, in prison and the community. Funded as the need is identified Measurement 3,000 male prisoners sentenced to less than 12 months UNCLASSIFIED

7 BIG LOTTERY FUND ENGAGEMENT AND INTENSIVE SUPPORT CONTRACT OVERVIEW 7 The Local Government Association and Social Finance have been commissioned by the Big Lottery Fund to support applications to Commissioning Better Outcomes fund and the Social Outcomes fund. Over the next two years, we will be providing a range of events, publications and direct support to help commissioners develop SIBs which can seek top-up outcomes payments from Commissioning Better Outcomes fund and the Social Outcomes Fund. The Commissioning Better Outcomes fund and the Social Outcomes Fund are designed to make the journey from initial thinking about a SIB to launch and implementation easier for commissioners, and ultimately to support the launch of more SIBs Awareness raising Targeted Engagement Intensive Support Needs Assessment and Sign-posting Learning and Dissemination Scope of Work/Deliverables Articles and blogs Articles in the mainstream, local and trade press within the contract Mailshots to LA commissioners Scope of Work/ Deliverables Thematic & Specialist workshops 1:1 surgeries at each workshop Workshop at LGA Annual conferences SIB engagement at LGA leadership programme SIB engagement at LGA board events Webinars Scope of Work/ Deliverables Intensive support with commissioners on how to develop thinking on a SIB and complete the expression of interest Scope of Work/Deliverables Review of submitted and accepted EoIs Feedback on areas of SIB proposition requiring further work Sign-post to support providers who can assist Social Finance will maintain a directory of Social Investment Support Providers, available on their website and given to all Needs Assessed commissioners Scope of Work/Deliverables Interactive SIB development tools Technical guides Podcasts Case Studies

8 COMMISSIONING BETTER OUTCOMES AND THE SOCIAL OUTCOMES FUND THE COMMISSIONER JOURNEY The services provided by Social Finance and LGA are there to support commissioners by drawing on the resources and expertise of the two organisations, whether the commissioner is new to the concept of SIBs or has already submitted an expression of interest to the fund. In addition to these services, the Big Lottery Fund can offer between k to commissioners in development grant funding following the acceptance of an EoI to the Outcomes Funds. This funding can be used to bring in a social investment support provider to develop the SIB by, for instance, identifying savings (to the commissioner and other organisations) and their value; estimating cashability of savings and identifying ways of realising them; defining the cohort and referral pathway; refining and pricing of outcomes; developing metrics; and developing the structure of the SIB. Attends workshop run by Social Finance and Local Government Association on SIBs Commissioner identifies SIB as a good response to a particular social issue Accesses Intensive Support and submits expression of interest to the Fund** EoI accepted by Fund**, accesses Needs Assessment support Commissioner applies for Development Grant funding to address issues raised by Needs Assessment process Commissioner uses development grant to develop full SIB proposal Commissioner submits Full Application to Fund** Services provided by Social Finance and the LGA Commissioner procures and launches SIB ** Fund refers to both Big Lottery Fund s Better Outcomes Fund and the Cabinet Office s Social Outcomes Fund, for which there is a single application process

9 WHAT TO EXPECT THE WORKSHOPS 9 The workshops are designed to provide commissioners with a comprehensive over-view of Social Impact Bonds, their applications and their development process. Over the first year we will be running 9 workshops, covering a range of social issue areas and specific elements of SIB development. The workshops will be interactive, with a focus on giving commissioners a pragmatic set of tools which they can use to begin thinking about a SIB in their organisation For commissioners who come to the seminar with a more advanced understanding, there will be opportunities to test out ideas and ask questions through the interactive sessions The first 5 workshops will each focus on a specific social issue area, the final four will be targeted at specific elements of the SIB development process Workshop Schedule Workshop Agenda Workshop Topics 7 November 2013, London 19 November 2013, Newcastle 22 January 2014, Birmingham 3 February 2014, Cambridge 12 February 2014, Nottingham 4 March 2014, Leeds 20 March 2014, Manchester Section 1 Introduction to SIBs Section 2- Interactive Session using SIBs to respond to priority social issue areas Section 3 Case Study (relevant to theme) Section 4 Completing an expression of interest Section 5 - Section 5 Interactive Session - Embarking on a SIB Children s Social Care Adult s social care and health (including public health and substance misuse/addiction) Criminal Justice Commissioning SIBs SIBs for legal and procurement teams SIBs for finance teams SIBs for CCGs and PCCs

10 WHAT TO EXPECT INTENSIVE SUPPORT 10 The intensive support service is there to help commissioners who are completing an expression of interest to the outcomes funds Social Finance have a team of Associates who have experience working with local authorities to develop Social Impact Bonds Commissioners will be assigned an Associate who will provide feedback and offer support on any areas which the commissioner requires help with The support provided will be determined by the commissioner according to the development areas they identify during their initial phone call with the Associate Commissioners can ask for intensive support for their EoI by ing sioutcomesfunds@socialfinance.org.uk Social Finance Associates Suzanne Ashman Suzanne joined Social Finance in February 2010 as an Analyst. She worked on the first ever Social Impact Bond (SIB) at HMP Peterborough and on SIB development in the field of vulnerable children. She has also worked on health, early years, justice and financial inclusion projects. Suzanne worked on the development of the Manchester City Council Social Impact Bond, focused on year olds in care. Suzanne previously worked at the Tony Blair Faith Foundation on the Yale University Faith & Globalisation Initiative as well as on programmes focused on the UN Millennium Development Goals Tom Symons Tom joined Social Finance in December His main area of work is the development of Social Impact Bonds for local authorities and the health sector, including complex families and health and social care integration. Before joining Social Finance Tom worked as an Advisor in the finance team at the Local Government Association, specialising in public service reform and local economic development. Prior to that Tom was a Senior Researcher at the New Local Government Network, a think tank that specialises in improving public services and empowering communities. Sandra Halilovic Sandra joined Social Finance in Her main area of work is focused around housing, working with housing associations and local authorities to develop a financing model for institutional investment. She advised on the development of a Social Impact Bond to improve adoption outcomes for hard to place children. Prior to joining Social Finance, Sandra worked in finance in New York and London at Houlihan Lokey. Sandra holds a Masters in International Finance and Advanced Economic Analysis from Columbia University, SIPA and a BSc in Finance from the University of Virginia.

11 WHAT TO EXPECT NEEDS ASSESSMENTS All commissioners who have an expression of interest accepted by the Outcomes Funds will be offered the opportunity to have a needs assessment of their application carried out by Social Finance The aim of this work is to provide the commissioner with a diagnostic of the areas of focus they will need to take their expression of interest to a Full Application. It is not necessary for commissioners to have worked with Social Finance or had a needs assessment to apply for development grant. The needs assessment will be carried out by the associate who worked with the commissioner in the intensive support phase and a Director from Social Finance The needs assessment can be used to seek funding from the Big Lottery Fund for the development phase of the SIB Commissioners will be provided with a directory of at least three social investment support providers, should they require external support to develop the SIB further. 11 Needs Assessment Focus Data and Analysis Financial Modelling Procurement and Commissioning Stakeholder engagement Outcome selection and valuation Investor Engagement UNCLASSIFIED

12 WHERE TO GO FOR MORE INFORMATION 12 Big Lottery Fund comesfunds Information about the Commissioning Better Outcomes Fund, EoIs and Development Funds Social Finance /sioutcomesfunds Workshops, Intensive Support and Needs Assessments /publications/social-finance Technical Guides and Case Studies Local Government Association Dates and registration information for the workshops Cabinet Office Centre for Social Impact Bonds - Pre-feasibility resources - Knowledge Box - Template SIB service agreement contract - Signposting Big Society Capital nding-the-right-investment/ Directory of social investment finance investment organisations in the UK that provide finance and support to the social sector

13 THANK YOU FOR YOUR TIME ANY QUESTIONS? UNCLASSIFIED