The Andrews Labor Government’s use of Social Impact Bonds (SIBs) to reduce social disadvantage took a step forward today, with the release of the Request for Proposal tender documents.
The focus of the SIBs will be to reduce harmful alcohol and other drug use, and assist young people leaving out of home care.
SIBs look at new ways of addressing difficult social problems by complementing current Victorian Government programs and services, and will not replace existing services.
By allowing private investment in non-government community service programs, they can encourage new thinking, with investors receiving a return on their investment when agreed social outcomes that reduce disadvantage are reached.
The Request for Proposal asks social services providers and interested groups to submit proposals that tackle social disadvantage, and can coexist with the Government’s broader reform agenda.
The Labor Government has been working closely with interested organisations in recent months, with a series of workshops discussing the program’s framework, and the lessons learned from other jurisdictions.
Proposals will close in five weeks, followed by an intensive joint development phase where details of the program and outcome measures will be negotiated.
Organisations submitting a proposal need to outline their capacity and capability to implement their proposals along with a cost analysis, and the long-term benefits to individuals and communities.
For more information on SIBs in Victoria, visit www.dtf.vic.gov.au/socialimpactbonds
Quotes attributable to Treasurer Tim Pallas
“As a modern Labor Government that was elected to put people first, we are open to new ideas that can reduce social disadvantage for young people – reducing drug and alcohol use, and assisting those young people leaving out of home care.”
“We have spent the last two years changing people’s lives for the better – including exploring ways to help some of our most disadvantaged Victorians and to ensure our programs are making a positive impact on the Victorian community.”