The success of the Newpin Social Benefit Bond (Newpin SBB) has now restored 66 children in care to their families while socially-minded investors enjoy strong financial returns, according to Deloitte certified results announced today.
The innovative Newpin SBB financial partnership between the NSW Government, UnitingCare Children, Young People and Families (UnitingCare), and Social Ventures Australia (SVA) works with parents who have had their children removed from their care, or whose children are at risk of removal, to create safe and nurturing family environments.
Children are restored to parents’ care once the Children’s Court NSW is satisfied that parents have developed the skills needed to provide a safe home.
At the end of June 2015, not only had the Newpin program restored 66 children in care to their families, but children from a further 35 families have been prevented from entering out-of-home care. The cumulative restoration rate for children was 61.6% for the first two years of the SBB program, resulting in an 8.9% p.a. return to investors.
The Newpin SBB is underpinned by an outcome-based contract between the NSW Government andUnitingCare, where investors receive a return based on the proportion of children restored to their parents. Some of the government savings that result from the success of the Newpin program are paid to UnitingCare, and then passed on to investors.
UnitingCare’s Children, Young People and Families Director Claerwen Little was pleased to see the continued success of Newpin.
“These positive results show that many families, given the right type of support, can provide safe and loving homes for their children.
“Just last week we launched the Wyong-based Newpin program funded entirely through this bond. The success of our partnership with the NSW Government and SVA has enabled us to expand the program so we can work with more families to create impactful social change,” Ms Little said.
Ian Learmonth, Executive Director of impact investing at SVA commented:
“The positive social and financial returns from the Newpin SBB, for a second year in a row, are a promising sign for this new approach to social services funding. As a result of this social impact bond, UnitingCare has security of funding for the Newpin program for years to come, and rigorous data on outcomes to inform program improvements. At the same time, the NSW Government is benefitting from a stronger society.
“We are pleased that the NSW Government have committed to developing new bonds across important social issue areas, and that the NSW example is inspiring similar commitments from governments in other states,” Mr Learmonth concluded.