Social Impact Bonds To Address Disadvantage

Drug and alcohol treatment programs and young people transitioning from Out of Home Care will be the focus of the Andrews Labor Government’s use of Social Impact Bonds (SIBs) to help reduce deep-seated disadvantage.

Treasurer Tim Pallas said the Labor Government was engaging with social service providers, potential partners and investors to determine how best SIBs can complement services in these areas.

Reaching better outcomes in these areas of disadvantage will deliver significant benefits for the individuals facing these challenges – as well as relieving pressure on our social services.

SIBs can be useful in finding new ways to address difficult social problems by promoting innovation and focusing on outcomes for people who need the services the most.

The challenges involved in treating disadvantaged people with drug and alcohol addictions are well documented, including poorer mental and physical health outcomes and increased risk of homelessness.

There are similar challenges in assisting disadvantaged adolescents leaving Out of Home Care, with too many experiencing unemployment, homelessness and all too regular contact with our justice system.

The Government will be instituting robust systems to measure SIBs outcomes and evaluate results.

The SIBs will complement current Victorian Government programs and services and will not replace existing services.

For more information on social impact bonds in Victoria, visit www.dtf.vic.gov.au/socialimpactbonds

Quotes attributable to Treasurer Tim Pallas

“The Andrews Labor Government is working with the social services sector to explore the best way to get the right outcomes out of Social Impact Bonds and tackle some significant areas of disadvantage in our communities.”

“Social Impact Bonds can be an innovative way to deliver real and hopefully lasting improvements to what are unfortunately persistent social issues.”