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EUSARF
2014
the first social benefit bond in Australia a new policy setting to improve outcomes for
children in foster care
Linda Mondy, Director, Out of Home Care
hoping you will
gain…
• awareness of what a social benefit bond
(SBB) is
• an idea of the challenges of defining,
measuring and attributing outcomes in foster
care
• the results of the Newpin SBB after 1 year
• learnings and excellent mistakes from the
SBB experience
about Burnside
• 102 years old
• one of the largest providers of services to
vulnerable children and families in NSW including
intensive family support and foster care
• sophisticated management, finance, innovation
and research skills
• no previous experience in the social finance
world
our purpose
our purpose is to create a fair and just society,
inspiring people and communities through
quality services, bold advocacy and influential
research
snapshot
Our approach is trauma informed, strengths based
and solution focused with a strong focus on
educational attainment in order to achieve outcomes
that shape the best future for children and young
people
280 children &
305 children /
young people
young people
capacity
in sibling group
building with
in foster care,
447 carers
homes, aftercare &
2 Aboriginal
kinship care,
146 staff
intensive family
foster care
intensive foster
preservation
agencies
care and
residential care
Newpin social
benefit bond
restoration
pilot
located in Sydney
and regional New
South Wales
advocacy
work
$20M
expenditure
2013/14 in
foster care
what is Newpin?
• started in the UK and brought to Australia in 1998
• intensive centre based, group work program for
parents and infants
• underpinned by attachment theory and
trauma informed practice
• requires a commitment of two days
week for around eighteen months
• non-judgemental relationships
a
Newpin - the context for change
• Newpin had been self-funded by UnitingCare
for 12 years
• efforts to build a sustainable funding base had
been exhausted
• we were set to close 2 of our 4 Newpin Centres
in Western Sydney in 2013
• then the NSW Government announced
an SBB pilot
the problem to solve
• on 30 June 2012, there were 39,621
Australian children living in out-of-home
care
• 17,192 of those children live in New
South Wales (AIHW,2013)
what is a social benefit bond (SBB)?
• new approach to financing social services and
encouraging innovation
• where governments, finance intermediaries,
non-government service providers and socially
minded investors come together to solve a
‘wicked’ problem
• raises private capital from investors for
intensive support and prevention programs
where results benefit all parties
the first social benefit
bond pilot in Australia
what did we take to market?
• a $7 million Newpin SBB
• expansion from 4 to 10 Newpin centres
• expect to work with over 700 families over the 7
year SBB period
• expect to restore over 400 children to their
families and to prevent 60 children entering care
• expect return to investors of 10-12% pa
• expect long-term government savings of $95m
who invested?
The SBB contract
• minimum referral guarantee
• detailed measurement of results confirmed
by an independent auditor
• performance payments reversed if
restorations break down
• external evaluation with matched control
group
SBB contract safeguards
• savings only generated if Newpin achieves
better family restoration and preservation
outcomes relative to the ‘counterfactual’
• Newpin results will be compared to a
population with a similar risk and OOHC
profile
• results metric must displace incentive to
choose ‘easy’ cases
learnings …
even before a single SBB dollar was raised, the SBB
process offered us benefits in terms of:
• discipline
• results focus
• learning to use information and turning it into wise data
to measure outcomes – measurement matters
• practice quality and rigour
excellent mistakes
• a too slow start to get enough referrals
• underestimating resistance
prepare to do
the tough stuff
it ain’t easy
• there is no such thing as a ‘classic SBB model’
• be prepared to think outside the box
• stay passionate but realise that you are
working in complex space where patience
and perseverance and speed are critical
• measurement matters
what do you need to start ?
a program with
• measurable results and defined outcomes
•
consistency with government policy goals
•
track record or good research foundations
a program model / innovation that:
• delivers significant short-to-medium term savings to government when
outcomes are achieved
Newpin SBB families
breaking news: year 1 results
• we have just announced our results
• 28 children restored home (target 41) = 4
netball teams of children back at home
• 10 children prevented from going into state
care
• achieved returns for investors – 7.5%
• government made savings
• Newpin program and data collection improved
recap…hoping you have gained
• awareness of what a social benefit bond
(SBB) is
• an idea of the challenges of defining,
measuring and attributing outcomes in foster
care
• early results of the Newpin SBB
• lessons and excellent mistakes from the SBB
experience
Thanks to all the Newpin families, staff, investors
and the NSW government
Linda Mondy
Director, Out of Home Care
www.newpin.org.au