Essex Social Impact Bond | Big Society Capital

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Essex Social Impact Bond

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Social Finance

Intervention for 11 to 17 years olds at the edge of entering care or custody, so that they can safely remain with their families.

Social impact

Action for Children, who is delivering the intervention, will help 380 vulnerable 11-16 year olds on the edge of care or custody to stay safely at home with their families. The intervention will use Multi-Systemic Therapy (MST), an evidence-based programme with a 30 year track record, which delivers family therapy in the home by highly qualified therapists. It focuses on improving parenting and rebuilding positive relationships so that families can manage future crisis situations, delivering long term and sustained impact.

Financial rationale

The primary outcome metric for the cohort is the average number of care days saved and is compared to the control review figure at the end of each measurement quarter. The control review figure is the average number of care days spent in care by a comparable group of children over a 30-month period. 

The value of outcomes payments per care placement day saved corresponds to a share of the cost to the local authority of care placement for this group of young people. The total value of outcome payments made over the term of the contract is subject to a cap of £7.1 million. 

Market development 

As the first Social Impact Bond commissioned by a local authority, the investment has the potential to drive systemic change in the way public services are funded and delivered. Social Finance, acting as performance manager, is building up an evidence base for early interventions aimed at vulnerable children. Through doing so, the investment is contributing towards building a track record of Social Impact Bond delivery which is essential to the further growth of this market.

Investment details

  • Fund size: £3.1 million
  • Big Society Capital's investment: £825k
  • Co-investors: Bridges Ventures Social Entrepreneurs Fund, King Baudouin Foundation, Barrow Cadbury Trust, The Tudor Trust, Esmée Fairbairn Foundation’, Ananda Ventures (Social Venture Fund)
  • Outcome payer:  Essex County Council
  • Delivery organisation: Action for Children
  • Manager: Social Finance
Last updated | 
20 January 2016