Care services sap huge amounts of resources and now an innovative SIB is seeking to make the system much more efficient. Very interesting – a service improvement at a lower cost, this is manna from heaven for government, let alone the fact that every child which finds a new, loving home, is simply wonderful.
A new project is aiming to find and train more adoptive parents for children who, because of age or ethnicity, might be overlooked.
The scheme has been developed by the Consortium of Voluntary Adoption Agencies (CVAA) and professional services firm Baker Tilly, with 18 voluntary adoption agencies helping them to set it up.
The finance for the programme has been provided through the first adoption Social Impact Bond (SIB), with Bridges Ventures and Big Society Capital investing £2m to pay for the scheme.
It will be repaid by local authorities and the Cabinet Office’s social outcomes fund from the savings made through not having a child in care for the same period of two years.
Each local authority will pay about £54,000 per child for the service over a two-year period, which is about half the cost of keeping a child in care for that time.
Private investors will fund 24-hour support for parents in the first two years of adoption to reduce the chance of placements failing.
If successful, their investment will be repaid by councils from the big savings made from not putting children in care.
In theory, investors could see a 4% return, but the rewards could be far higher.