Minister Rob Wilson launching the Life Chances Fund | PC: Government Outcomes Lab
The fund was launched in July to back small-ticket pay-for-success projects in which the public agencies supporting the programs might see only small savings (the U.S. has a similar fund).
Ten contracts for a total of £54 million have been approved, each of them for less than £10 million ($13.7 million).
The projects include the U.K. Family Drug and Alcohol Court, which supports families and children involved in foster care proceedings; East Midlands Children’s Services Social Investment Platform, which will test new services for children at risk of entering foster care; and Integrated Family Support, to address safety concerns for children in homes where drugs and alcohol are abused.
Life Chances Fund is committing £16.4 million and 36 local authorities are contributing the rest. A recent report from the Center for Public Impact found that investors think social impact bonds below $15 million don’t justify their costs.
Social impact bonds targeting child and family services have also been launched in the U.S. and Australia.