Social finance

As part of the Big Society vision, social finance is offered as capital for social sector organisations with the objective of obtaining both a financial and social return on the investment. This will affect the long-term requirements for qualified children’s social workers.

Social finance is part of the Big Society idea whereby a social investment market is created. The underlying concept is the provision of capital to social sector organisations in the voluntary or community arena, which is made with the expectation that there will be both a financial and social return on the investment. The focus is therefore on reducing outgoings whilst achieving positive outcomes for children and the community. There are a range of initiatives within this approach, which from March 2012 will have a collective an investment fund of £600 million. The initiatives include: Payment by Results (PBR); Social Impact Bonds; and the planned Big Society Capital (previously the Big Society Bank). Whilst the government is currently the largest investor, other stakeholders include banks, trusts and private investors. As a social return on investment is achieved, there may be a reduced need for long term targeted services and thus a reduced demand for qualified children’s social workers.

Sources or references

• http://www.communitycare.co.uk/Articles/07/03/2011/116398/what-would-payment-by-results-mean-for-childrens-services.htm
• http://www.socialfinance.org.uk/work/sibs/childrenincare
• http://www.cabinetoffice.gov.uk/news/big-society-bank-launched
• http://www.bigsocietycapital.com/
• http://en.wikipedia.org/wiki/Social_impact_bond

Some of the information in this section is provided by stakeholders and expert groups, and does not necessarily represent the views of the CfWI.