Social finance trial council ponders bank loan to cut care numbers

31 October 2011 3 mins read Neil Puffett Management Financial management Social Care Residential and specialist care

One of England's largest local authorities is planning to borrow millions of pounds instead of courting money from private investors to fund a major project to keep children out of care, CYP Now has learned.

Essex County Council was one of three authorities to undertake a six-month feasibility study using social finance and payment-by-results to reduce the number of children in care, between April and September this year.

But, despite the Cabinet Office identifying a number of social investors ready to provide the required £3m in funding, the authority is considering taking out a loan for the amount instead, to avoid paying out a premium if the scheme is a success or risk being left out of pocket if savings fail to materialise.

Dave Hill, director of children’s services at Essex County Council, said social impact bonds remain an option, but finance chiefs at the authority appear to be in favour of a model that sees the authority keep all the savings generated.

Register Now to Continue Reading

Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's Included