Bidding process opens for £5m rough sleepers social impact bond
Civil Society, by Vibeka Mair
The Mayor of London has this week opened the tender process for providers who want to deliver services within its new £5m, three-year, social impact bond which is aiming to reduce rough sleeping in London.
The social impact bond (SIB), which is being developed by the Greater London Authority (GLA) and Social Finance, will be targeted at a cohort of around 700 people who are periodic rough sleepers or frequent returners to rough sleeping.
The GLA is seeking organisations to improve housing, employment and health outcomes for the cohort, and intends to award up to four contracts for the SIB.
The Department for Communities and Local Government (DCLG) has committed up to £5m to pay for improved outcomes within the SIB, and it is anticipated that funding will be made available through payment-by-results contracts.
A GLA spokesperson said the SIB may involve providers securing social investment funding for some or all of their services, with investors receiving a financial return for outcomes achieved for a defined cohort.
Social Finance is assisting the GLA in engaging with potential investors into the SIB, and will be hosting an event to introduce short-listed providers to potential investors and investment intermediaries on the 12th June.
A Social Finance spokeswoman said: “DCLG and GLA are aware that payment-by-results contracts can create a working capital challenge for charities and social enterprises. They are keen to ensure that high quality service providers are not excluded from bidding for these contracts due to a lack of finance.”
Last month, Prince Charles expressed interest in using social impact models to tackle homelessness.
He held a meeting at Clarence House with some of his charities to discuss the future of social impact bonds, including measures to expand the model in the homelessness sector, with attendees including Big Society Capital and the Big Lottery.