Private finance can intervene now, but not for generations

MP Graham Allen's answer is to secure private backing for such programmes through a range of financial instruments, as outlined in his second report to the government this month.

Drawing up watertight, outcomes-based contracts is a minefield that is yet to be worked through, but if private backers want to step in, that's to be welcome. The early intervention grant doesn't begin to cover the level of need that exists in some local areas. However, if we know certain programmes work to improve young lives, and that the costs of investing in them are outweighed by costs to the state - through welfare dependency, crime and so on - of not investing, then why is it not the state's responsibility to cough up? It is frankly absurd for it not to do so, provided there is strong evidence of impact. It is just as absurd to assume private investors are lining up in their droves to back social programmes. Private finance might be one possible solution for these particularly debt-laden times. But let's not harbour any illusions that it is the solution for posterity.