Social bonds could fund vital work

Early Intervention: Securing Good Outcomes for all Children and Young People, published last week, provides guidance for children's trusts on how best to deliver early intervention and boost provision in the future.

The paper includes a commitment for an expert group to be formed to explore the potential of social impact bonds to raise money to support early intervention.

Similar proposals were outlined in Action for Children's Backing the Future report last year, which suggested that government-issued bonds could raise the billions needed for a radical investment in early intervention that could eventually save £486bn over 20 years.

Politicians of all parties have previously been criticised for failing to commit to such investment. But Maureen Nuttall, strategic development manager at Action for Children, told CYP Now the paper represented a change of direction. "It's a big move - for the first time it has got past the discussion stage," she said. "They are saying they like the idea and recognise it might work. We hope it doesn't take long."

The expert group will look at work on social impact bonds currently being carried out by the Young Foundation and Social Finance. Social impact bonds involve a local authority borrowing for investment in a social impact programme, such as helping teenagers remain in education, employment or training.

The authority would then receive a series of payments from government if particular milestones are achieved, which would result in savings for government.

Graham Allen, Labour MP for Nottingham North and co-author of a Centre for Social Justice report on early intervention, said the Treasury must be on board for the idea to take off.

"If the Treasury has moved from being slothful and obstructive to being thoughtful and facilitating, then that would be good news. We need the Treasury to be a proactive partner in these developments," he said.