News

BIG announces £1.45m in social investment funding

Fundraising | Vibeka Mair | 18 Jul 2012

The Big Lottery Fund has awarded £1.45m to eight social investment projects, including a property scheme and a social impact bond.

Golden Lane Housing, which is part of Mencap, is receiving £349,000 to develop a property-based fund to benefit 250 people with learning disabilities. An initial £10m investment will be raised through private investors to purchase and adapt 100 homes. The group will then undertake an evaluation of the impact on tenants, families and the wider community. Two further phases aim to raise £20m via the Stock Exchange to acquire up to 550 properties for people with learning disabilities over the next 25 years.
 
The properties purchased through the investment bond will provide a financial return for investors through rent, whilst providing suitable homes for those with learning disabilities. After ten years vacant properties will be sold to release capital and provide further financial return for the original investors.

Also receiving funding is Cool2Care, who will use a grant of £125,000 to set up a social impact bond pilot. Since 2007 the organisation has matched personal assistants with families of children with disabilities. The pilot will develop the matching service, working with 60 children in Gloucestershire, Cambridgeshire and Surrey.
 
It is expected that by providing this service, children with disabilities and their families will receive appropriate support at an earlier stage to prevent escalation of issues and greater costs down the line. Cool2Care is forecasting the bond will generate a return for investors over three years. The pilot will test a new financial model with commissioners and investors, for future use by local authorities.

Nat Sloane, Big Lottery Fund England chair said: 
“BIG has been a pioneer in the field of social investment, having supported the first ever social impact bond, aiming to reduce the reoffending rates of those leaving Peterborough prison. The Next Steps awards announced today build on this and are a key stepping stone in our journey to support the development of the social investment market in England, in a way that will enable VCSE organisations to better serve those most in need.”

Nearly £2m has been awarded to 12 organisations through Next Steps: Supporting Social Investment in England, which is exploring the potential of new approaches to raising finance that will help address significant social issues.
 

Directory: Big Lottery Fund | Mencap