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Home Portfolio Community & Social Newpin success paves way for social impact bond expansion
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TAGS public-private partnerships, Social impact bond, social impact investment
The lure of paying for outcomes, rather than inputs, is leading governments around Australia to watch the progress of the NSW social impact bond pilot programs. The results so far suggest a successful outcome and room for growth.
Several state governments and the Commonwealth have taken the strong returns of the Newpin social impact bonds as the way forward for achieving outcomes within a constrained budget and risk appetite.
Australia’s first social benefit bond has helped return 66 children in care to their families, resulting in a 8.9% per annum return to investors, according to second year financial results.
The Newpin bond, created in 2013, is a seven-year, $7 million pilot program run by UnitingCare to test the use of social impact bonds in Australia, aims to restore children to their families from out-of-home care, or prevent them from entering care in the first place, through creating safe family environments.
It does this by funding an intensive 12- to 18-month course for parents of children aged five years or under, with strong outcome targets and performance measures guiding returns to investors in the program. As with other social impact bonds — known as social benefit bonds in NSW — investors are paid based on results.
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David Donaldson is a journalist at The Mandarin based in Melbourne. He's previously written for The Guardian and Crikey and holds a masters in international relations.
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Victoria has let NSW take the lead on social impact bonds, but now it's trying out its own programs for at-risk youth and the long-term homeless.
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Stephen Easton (journalist)