Investors sought for ‘social bonds’

Ministers want philanthropists, charities and other organisations to plough cash into projects tackling anti-social behaviour, crime, addiction and poor education.

In return for putting cash into a Social Impact Bond, investors will be paid dividends for any successful projects.

The Government expects to raise up to £40m across pilot schemes in Hammersmith & Fulham, Westminster, Birmingham and Leicestershire, which are expected to be up-and-running early next year.

Civil Society Minister Nick Hurd said: “We must not be afraid to do things differently to end the pointless cycle of crime and deprivation which wrecks communities and drains state services.

“Social Impact Bonds could open serious resources to tackle social problems in new and innovative ways.

“We want to restore a stronger sense of responsibility across our society and to give people working on the front line the power and resources they need to do their jobs properly.

“Social Impact Bonds could be one of many Big Society innovations that will build the new partnerships between the state, communities, businesses and charities and focus resources where they are needed.

“The four local authorities that will pioneer this work are taking a bold and exciting step.”