Seven new social impact bonds launch as part of £23m of homelessness funding

Seven new social impact bonds launch as part of £23m of homelessness funding

Seven new social impact bonds launch as part of £23m of homelessness funding2

Finance | Alice Sharman | 10 Dec 2014

The government has today announced £23m of funding to not-for-profit organisations to combat homelessness, part of which will fund up to seven new social impact bonds.

The new Fair Chance Fund, which was announced today, is a £15m fund which will pay for sustained housing, employment and educational support for homeless 18 to 24 year olds with investors putting in money now on a “long-term payment by results basis”.

An additional £8m has also been made available from the Help for Single Homeless fund which will support around 22,000 single homeless people around the world. 

Seven projects have been awarded a share of the Fair Chance Fund money over three years from January 2015. Those projects are expected to be run as social impact bonds. If this is the case, this will increase the number of SIBs in the UK from 17 up to 24.

The funding comprises £10m from the Department of Communities and local Government, and £5m from the Cabinet Office’s Social Outcomes Fund.

A SIB is a type of payment-by-results contract in which a  charity agrees with a commissioner to deliver an outcome. The charity receives social investment which it uses to pay for the service. If the outcome is achieved the investor makes a profit. If the outcome is not achieved the commissioner makes no payment and the investor loses out.

Outcome payments will be made according to whether young homeless people with complex needs can sustain settled accommodation for 3 months, 6 months, 12 months and 18 months, as well as achieve National Vocational Qualification equivalent qualifications. Other conditions are that young people can maintain volunteering and sustain work for between 6 and 26 weeks.

Local authorities will be responsible for referrals to the Fair Chance Fund schemes, ensuring that young people with the greatest need are prioritised.

Rob Wilson, minister for civil society, said: “I am really pleased to be backing the Fair Chance Fund. It is a great example of how innovative social investment has the potential to achieve great things for people whom traditional funding cannot reach. This will give voluntary sector organisations the freedom to do what’s needed, when it’s needed.”

Conditions for providers claiming outcome payments include young people being aged between 18 and 24 (or 21 and over if they are care leavers) who are not in employment, education or training and a priority for local authority support but unable to be accommodated in a supported housing scheme.

Bridges Ventures, a specialist fund manager dedicated to sustainable and income investment, is investing £1.5m across three of the social impact bonds. These are those won by DePaul UK, St Basils and Fusion Housing.

Martin Houghton-Brown, chief executive of DePaul UK, said: “We are delighted to have been selected as one of the providers for the innovative Fair Chance Fund.  Depaul welcomes this important new resource that will provide support to those young people who might otherwise be left out.

“As we embark on this challenging and exciting project, we are delighted to be working in such close partnership with local authorities to ensure we meet the needs of every young person. Working closely with our new social finance partners is an exciting opportunity for DePaul and will enable us to reach out to even more young people for an even longer period of time.”

The winning Fair Chance Fund bids are led by:

DePaul UK – working in Greenwich, Manchester, Oldham and Rochdale
Fusion Housing – working in Kirklees, Calderdale and Wakefield
Home Group – working in Newcastle, Northumberland, South Tyneside, North Tyneside, Gateshead, Durham and Sunderland
Local Solutions – working in Liverpool and Knowsley
P3 – working in Gloucestershire, Tewkesbury, Forest of Dean, Stroud, Cheltenham, Gloucester City and Cotswold
St Basils – working in Birmingham, Coventry, Solihull, Walsall and Wyre Forest
The Y – working in Leicester, Leicestershire, Derby and Derbyshire

Stephen Axcell
11 Dec 2014

Funding or financing? There is a major difference but it is one that appears to be getting lost somewhere.

John Adams
China Financial
11 Dec 2014

I would like to know who are the investors in social bonds; and what is the rate of return. Do you have any examples please ? Thank you.

John Adams


[Cancel] | Reply to:

Close »

Community Standards

The community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear


  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

‘There’s no question Oxfam was culpable in fundraising scandals’, says Mark Goldring

30 Sep 2016

Oxfam was culpable in fundraising scandals of last summer because it failed to supervise its contractors,...

‘Charities do not have the technology to comply with the Fundraising Preference Service’

30 Sep 2016

Only a handful of large charities have the technological tools to comply with the Fundraising Preference...

Sport Relief 2016 raises record £72.5m

30 Sep 2016

Comic Relief has announced that its biennial fundraising event, Sport Relief, raised a record £72.5m,...

'Stop accusing volunteers of replacing paid staff; those jobs are never coming back'

29 Sep 2016

People should stop moaning about volunteers replacing paid staff because those jobs are never coming back,...

Labour MP wants National Citizen Service to be rolled out in Wales

29 Sep 2016

A Labour MP has urged the Welsh government and Westminster to agree to bring National Citizen Service...

We need the press to investigate the larger charities, says CEO of Media Trust

29 Sep 2016

Caroline Diehl, chief executive of the Media Trust, has said that it is important that charities are scrutinised...

‘Charities do not have the technology to comply with the Fundraising Preference Service’

30 Sep 2016

Only a handful of large charities have the technological tools to comply with the Fundraising Preference...

Eduserv agrees £138,000 payment to retiring CEO without telling full board

26 Sep 2016

Eduserv, a charity that provides IT services to the public sector, agreed to pay its retiring chief executive...

Barnardo’s launches ten-year strategy with plans to double fundraising income

22 Sep 2016

Barnardo’s has announced a ten-year strategy which will aim to grow income by a third and change its...

Join the discussion

 Twitter button