Wealthy business people will be asked to help solve London’s homelessness crisis by investing in public sector projects for a possible financial return.
Ministers want to boost private investment in public sector projects across the country with a £20 million fund for cash-strapped government departments and local authorities.
Cabinet Office minister Francis Maude today unveiled the “Social Outcomes Finance Fund”, which he said will help “improve the lives of the vulnerable”. Under the scheme people will invest in Social Impact Bonds allowing philanthropists to put money into a project that addresses a particular social problem. If the project is successful, investors are rewarded with a government-funded financial return.
Nationally the fund will be divided between 10 to 20 new projects and aims to build up at least £60 million of social investment in total.
There are 10 social impact bond schemes already operating in the UK.
In London a bonds project was launched today by City Hall in a bid to cut the numbers of people sleeping on the streets. Boris Johnson said: “While we have made great strides [...] there is still much more to do.”
