17th September 2018

Social Metrics Commission launches a new measure of UK poverty

• Independent commission unites poverty experts and thinkers from the left and right with new poverty metric
• Metric accounts for the inescapable costs that reduce people’s spending power and the liquid assets that can be used to alleviate people’s immediate poverty
• New data shows who is poor now and how that has changed over time, to provide a clear focus for policy makers.

The Social Metrics Commission (SMC) is an independent commission founded in 2016, that has brought together thinkers from the right and left with data and analytical experts to develop a new approach to measuring poverty. Currently there is no agreed UK government measure of poverty and the SMC’s mission is to provide a new consensus around poverty measurement that enables action, informs policy making and so improves the lives of people in poverty, in real ways.

For the first time, as well as looking at incomes, the new metric accounts for a range of inescapable costs that reduce people’s spending power, and the positive impact of people’s liquid assets on alleviating immediate poverty. These inescapable costs include rent or mortgage payments, childcare and the extra costs of disability. Liquid assets include savings, stocks and shares. The new metric reflects more accurately the realities and experiences of living in poverty than previous measures.

The SMC report, available here,  reveals numerous key findings and challenges. The total number of people living in poverty is 14.2 million with the composition of poverty moving towards a better identification of children (4.5 million) and working-age adults (8.4 million). The good news is the shift away from pensioner poverty with far fewer pensioners living in poverty following a significant reduction of poverty amongst pension age couples, over the last 15 years.

The report reveals that people with a disability are much more likely to be living in poverty than previously thought, with around half of the 14.2 million people in poverty living in families with a disabled person.

The report also reveals the persistence and depth of UK poverty. More than one in ten (12.1%) of the total UK population are in poverty now and have been in poverty for at least two of the previous three years. A further 2.5 million people live less than 10% above the poverty line and are close to falling below it with relatively small changes to their circumstances; and around 2.7 million people live less than 10% below it.

 SMC KEY FINDINGS

1. 2 million people in the UK population live in poverty: 8.4 million working-age adults; 4.5 million children; and 1.4 million pension age adults.
2. Over half of those in poverty (58.2%) also live in persistent poverty. This means that more than one in ten (7.7 million) of the total UK population are in poverty now and have been in poverty for at least two of the previous three years. Persistent poverty is highest in families more than 10% below the poverty line, in workless families and families where someone is disabled.
3. People with a disability are much more likely to be living in poverty. Nearly half of the 14.2 million people in poverty live in families with a disabled person (6.9 million people equal to 48.3% of those in poverty). The SMC metric recognises the inescapable costs of disability, accounting for them alongside the value of disability benefits, to reflect the lived experience of living with a disability.
4. Far fewer pensioners are living in poverty than previously thought, with a significant fall in pensioner poverty over the last 15 years. Poverty rates amongst pension-age adults have nearly halved since 2001, and have fallen to one in ten, a drop from 17% of the total population in poverty in 2001 to 11% in 2017. There are, however some pensioner groups still experiencing high levels of poverty. For example, the poverty rate for pensioners who do not own their own home is 34.2%.

 The SMC is an independent Commission and a non-partisan organisation dedicated to helping policy makers and the public understand and act to tackle poverty. It was formed and led by the Legatum Institute’s CEO, Baroness Stroud.

Membership of the Commission numbers fifteen commissioners, as follows:

The Commission will release further information on how it will continue to play a strong role in leading the development of poverty measurement and affecting positive change to tackle poverty.

Commenting on the findings of the report, Philippa Stroud, Chair of SMC and CEO of Legatum Institute said:

“I established the Social Metrics Commission with the aim of developing new measures of poverty for the UK. The need for an independent Commission was clear; much of the last decade of political and policy debate on poverty has focussed on whether and how we should measure poverty, rather than the action needed to drive better outcomes for the most disadvantaged in our society. The approach, results and recommendations in this report represents a consensus view uniting right and left, supported by every one of the fifteen Commissioners involved, on how we should measure and understand poverty in the UK and the experiences of those who are in poverty. For too long it has been possible to have a debate about the measurement of poverty. Now I call on people and organisations across, and outside of, the political spectrum to support this new measure of poverty so that we can all put our energy into creating the policies and solutions that build pathways out of poverty.”

Helen Barnard, Head of Analysis at the independent Joseph Rowntree Foundation, SMC commissioner said:

“I am delighted that we have launched this new poverty measure today. It gives us a clearer picture of who is in poverty and highlights the importance of housing and childcare costs in sweeping people into poverty, and the protection that savings can provide.  For too long we have been stuck in debates about how to measure poverty. Working as part of the Social Metrics Commission has shown how much we share. We all want to live in a society where people have the resources to meet their needs, and to open up opportunities for people to build a better life.  We call on the government, the Office for National Statistics and all of those working to solve poverty, to support this new measure of poverty and concentrate now on taking action to loosen the grip of poverty on people’s lives.”

Professor Leon Feinstein, Director of Evidence at the Office of the Children’s Commissioner, SMC commissioner said:

“‎The work undertaken by the SMC has improved the accuracy of estimation of levels and types of poverty, focusing better than previous measures on the experience of poverty. By taking childcare and other needs into account the work of the Commission has shown a greater level of poverty for children, which has hitherto been hidden. All the Commissioners hope that government and other agencies will use the measure to re-establish a clear policy focus on poverty reduction and to improve the targeting and effectiveness of policy.”

David Hutchison, CEO of Social Finance, SMC commissioner said:

“What do we mean by living in poverty? Five people living in one room because they can’t afford any more space. Falling behind on household bills with no savings to rely on. Not being able to go out to work because childcare costs are too high. If we are serious about supporting vulnerable people, we need to understand what drives them into poverty and what keeps them there. This new measure is a bold attempt to understand the characteristics of those who face the challenge that their resources fall short of the inescapable costs of daily life.  It is a critical step if we are to change the way we tackle poverty in the UK.”

Oliver Hilbery, Project Director, Making Every Adult Matter said:

“The broad alliance of people involved in developing this new measure and the politically neutral nature of the Commission’s work is vital. Making Every Adult Matter wholeheartedly supports the call to see this new measurement of poverty adopted by government, all political parties, and wider organisations, so it can be used to shape future policy and hold decision-makers to account. Without this, a large group of society, and especially those facing multiple disadvantage, risk being left further behind without the support they so desperately need.”

New Report: Care Leavers support system in England should redirect resources to the front-line  

• Leaving care is often a traumatic time for care leavers. On leaving care, there is 23% increase in mental health conditions; 19% have no one they can turn to for help. Nearly 40% of 19-21 year olds care leavers are not in employment, education or training.
• Personal advisers from local authorities express frustration that they cannot give more support to care leavers. Today’s report suggests that around 30% of personal advisers’ time is spent on crisis cases. Nearly a quarter of their time is taken up by administration. 
• Current system is creaking under the weight of statutory responsibilities. Resources need to be redirected to free up personal advisers’ time to collaborate more closely with care leavers. This could transform outcomes for young people leaving care.  

For immediate release

Social Impact Bonds reach global mass: 108 projects launched in 24 countries

• Nearly $400m raised to tackle social issues globally
• Nine countries launched first programs in 2017
• US market sees largest market growth in 2016-7
• First Social Impact Bond in Peterborough reduced reoffending by 9% and returned investor capital with a 3% annualized return in 2017
• 10 Social Impact Bonds have reported a full capital return following successful positive outcomes for vulnerable adolescents, homeless youth and ex-offenders
   

30 January 2018 – Today, the Social Finance Global Network announced that there are now over 100 Social Impact Bonds (SIBs) launched worldwide. The Social Finance Impact Bond Global Database provides information on all 108 launched projects, which have collectively mobilized $392M in capital to reach up to 738,000 people in 24 countries.

World’s 1st Social Impact Bond shown to cut reoffending and to make impact investors a return

• Independent evaluation determines that Peterborough Social Impact Bond reduced reoffending of short-sentenced offenders by 9% in Peterborough; investors are repaid in full
• Programme highlights the value of sustainable investing and data-informed delivery to tackle deep-seated social issues
• Rapid global market growth since Peterborough Social Impact Bond launch in 2010 : 89 Social Impact Bonds in 19 countries mobilising £300+m for social good

The growth of community businesses is driven by attempts to rescue libraries, pubs and other local assets under threat from closure, according to research released by the independent trust Power to Change and the non-profit Social Finance. 

The report found that the number of community businesses in England has grown by 5% in the last year, outstripping growth by both charities (1%) and small businesses (2.3%).

Community businesses are charities and other organisations run for and by local communities, which re-invest all surplus back into the local area.

The report found:

• 300 local libraries are now run as community businesses (20% growth on 2015)
• 1,100 sports and leisure facilities are now run as community businesses (10%)
• 40 local pubs are now run as community businesses (14%)
• 330 local shops are now run as community businesses (3%)

Community businesses are also more likely to seek trading profits to make ends meet over the next year than try to find new grants and volunteers. In a ‘sea-change’ in the way local   communities approach a tough future, 35% of community businesses plan to prioritise trading in the next twelve months, compared to only 28% who want to bring in new grant income and 30% who want to attract new volunteers.

The Community Business Market in 2016 research also found:

• The number of community businesses in England has risen 5% in the last year, to 7,085
• Their combined income has risen to more than £1bn in the last year
• Their combined assets have risen to £2.1bn in the last year
• They employ 36,000 staff and 200,000 volunteers

The report argues that community businesses are ‘survivors’ during such difficult economic times, with virtually no reports of them going out of business.

Richard Harries, Director of the Research Institute at Power to Change, said:

‘Community groups are showing themselves to be increasingly business savvy and resilient as they gear-up for more tough times ahead.

‘This is good news. Communities are worried about the future of their public services and high streets, but these figures show that local people are also taking solutions into their own hands. Thousands of much-loved buildings and services would have disappeared if community businesses hadn’t stepped in.    

‘This sort of model is here to stay. It represents a sea-change in the way our local communities are planning for the future’.

Adam Swersky, Associate Director of Social Finance, said:

‘The community business market has shown remarkable resilience in the face of declining public spending, challenging business models, and policy changes. Over the past year, despite these trends, we found that the market grew overall. Over three years, not a single market sector has shown signs of decline.

‘This is a testament to the ability of community businesses to diversify their income, flexibly adjust to market conditions, and draw on the unique resources and talents of the communities they serve’.

From secondary modern to community business: The Linskill Centre, North Tyneside

The Linskill Centre, situated 8 miles outside Newcastle, was built in the 1930s. It was a secondary modern and, after the school shut in 1984, a council-run community centre.

When all public funding was withdrawn in 2005 and the building faced demolition, local campaigners stepped in to shape its future. They persuaded the council to entrust it to the community, and in 2006 North Tyneside Borough Council agreed for a new charitable trust to manage the building on a 50-year lease. A number of community businesses now operate from The Linskill Centre, with a café, room hire and tenants all contributing to profits which are re-invested into the project.

The Linskill Centre’s strategy for the next five years explicitly recognises the role of local people in providing services once covered by local councils:

‘The impact of public sector cuts means the local authority will no longer be able to provide the facilities or services it previously did to our communities and the Trust, along with other partners, will aim to fill some of these gaps while liaising with the local authority. The Trust is locally led and responsive, it can provide more cost-effective solutions to running services and also help in prevention of problems while improving people’s lives through its community projects.’

The Linskill Centre received funding from Power to Change earlier this year.

Social Finance is delighted to announce that David Blood has been appointed as its chair and will take up the post in April 2016, following the retirement of Bernard Horn.

Bernard Horn will step down in April 2016. He has chaired Social Finance from its inception in 2007 and has led its growth over eight years. Under his leadership, Social Finance now has more than 70 staff in London, two sister organisations in the US and Israel and a global network of partners in Canada, Australia, Brazil and Europe.

David Blood is one of the co-founders of Social Finance and has been a leading advocate for impact investment on the global stage for well over a decade. David is also co-founder of Generation Investment Management. Generation is a mission driven partnership with an investment philosophy based upon the strong belief that sustainability factors materially affect the dynamics that drive and influence the long-term performance and profitability of companies.

David Hutchison, Chief Executive welcomed the appointment, “David Blood has been a tremendous supporter of Social Finance over many years both here and in the US. We are delighted that we will benefit from his guidance and leadership in the years ahead. At the same time, we will be very sorry to say farewell to Bernard Horn. His contribution to Social Finance has been invaluable. Bernard has given of his time unfailingly and he has always been the most effective advocate for our approach in tackling complex social issues.”

For more information, please contact Alisa Helbitz, Director of Communications on 07500 433044 or alisa.helbitz@socialfinance.org.uk

Notes to editors:

1) Social Finance is a not for profit organisation that partners with governments and NGOs, social sector and financial community to find better ways of tackling social problems in the UK and beyond. Since its formation in 2007, Social Finance has mobilised over £100 million of investment and helped to design a series of programmes to improve outcomes for vulnerable individuals. Social Finance is the originator of the Social Impact Bond model.

In the UK, our work includes support for 2,000 short sentence offenders released from Peterborough Prison, 380 children on the edge of care in Essex, 2,500 young people at risk of becoming NEET and 1400 homeless youth and rough sleepers. Internationally, Social Finance is working with the Global Fund, World Bank, Grand Challenges Canada, the Inter-American Development Bank, USAID, DfID and others on Development Impact Bonds and other innovative outcomes-based financing mechanisms to address challenges in low and middle income countries. www.socialfinance.org.uk 2

2) Bernard Horn had a varied career with NatWest spanning 30 years, including six years as a Main Board Director. His roles included five years as Chief Executive of the International Businesses, and a similar period as Executive Director, Group Operations. He led significant acquisition and disposal activity whilst with the bank. He is a graduate of the Advanced Management Programme at Harvard Business School. Since leaving NatWest he has developed a portfolio of activities acting both as Chairman and non-executive director, concentrating on smaller, entrepreneurial companies in consulting and software development, (some with Private Equity backing). He is Chairman of Magic Bus UK, and a member of the Magic Bus Global Council. He was a member of the Commission on Unclaimed Assets.

3) David Blood is co-founder and Senior Partner of Generation Investment Management. Previously, he spent 18 years at Goldman Sachs including serving as co-CEO and CEO of Goldman Sachs Asset Management from 1999-2003. David received a B.A. from Hamilton College and an M.B.A. from the Harvard Graduate School of Business. He is on the Board of New Forests, Dialight, SHINE, The Nature Conservancy and Ashden, as well as a Life Trustee of Hamilton College.

Today Social Finance and Kin Capital announce the launch of the first UK- wide fund to take advantage of the new Social Investment Tax Relief (SITR).  The £3 million Bright Futures SITR Fund will invest in charities and social enterprises working to improve the lives of children, young people and vulnerable groups across the UK. It is an exciting prospect for investors as it offers the opportunity to drive social good whilst achieving a solid financial return.

Please download the attachment for the full press release.

Social impact investing could herald a new era of safer road investment by making transparent the links between road safety measures and public health outcomes.

A new report by Social Finance and Impact Strategist, two leaders in policy development in the burgeoning ‘payment for success’ Social Impact Bond (SIB) market, argues that private sector financing through a road safety Social Impact Bond framework could bring new funding sources and new rigour to transport investment. The funding for the Social Impact Bonds is provided at risk by social investors whose financial return is aligned to the positive social impact of meeting pre-agreed social outcomes.

More than 1.2 million people are killed and up to ten million seriously injured on the world’s roads every year. Reducing this toll by 50% by 2030 will be the aim of a stand-alone target included in new United Nations ‘Sustainable Development Goals (SDGs)’ later this year.  Published to coincide with the 3^Rd International Conference on Financing for Development, the report ‘Breaking the Deadlock: A Social Impact Investment Lens on Reducing Costs of Road Trauma and Unlocking Capital for Road Safety’, commissioned by the FIA Foundation, highlights the need for increased financing for global road traffic injury prevention to achieve this target, but points out that significant improvements could be made if the billions of dollars of existing road infrastructure investment is deployed with the priority objective of realising social and financial savings from reduced injuries and fatalities.

Please download the attachment for the full press release.

Social Finance announces today that both the Teens & Toddlers and Adviza Social Impact Bonds have performed above expectations and delivered outcomes sufficient to return investor capital earlier than expected. Full results will be published in 2016 when the projects come to an end.

In October 2012, the Department of Work and Pensions Innovation Fund awarded two Social Impact Bond contracts worth £7m to fund positive social outcomes for young people on the Adviza and Teens & Toddlers programmes. The Social Impact Bonds are managed by Social Finance. Unlike typical social service delivery, the funding for the Social Impact Bonds is provided at risk by social investors whose financial return is aligned to the positive social impact of meeting pre-agreed educational, training and employment outcomes.

Teens & Toddlers and Adviza deliver innovative programmes to address the root causes of young people becoming NEET (not in education, training or employment). The two projects work with 14-15 year olds who are identified as having on average three to four risk-of-NEET indicators, including poor school attendance, disruptive or antisocial behaviour, family or mental health issues and low educational attainment.

Social investors provided the money needed to run the programmes and are rewarded by the DWP if the adolescents achieve a number of defined targets, including improved attitude, behaviour and school attendance, educational and life skills qualifications and employment. Outcomes payments from the Innovation Fund may be claimed over the three and a half years of the programme.

Please download the attachment for the full press release.

Social Finance announced today that it is launching three new Social Impact Bonds through the Fair Chance Fund to tackle youth homelessness in Liverpool, Manchester, Birmingham, West Midlands and South London.

The Social Impact Bonds will fund interventions for over 600 young people who do not have a permanent and stable home. Social Finance has raised £2.2 million from social investors to fund interventions delivered by three charities, Depaul UK, St. Basils and Local Solutions to provide intensive and tailored support to find the young people accommodation and get them ready to undertake training courses, begin work or go back into education.

There are approximately 60,000 young adults aged 18-24 in England who experience homelessness each year. The majority receive support from statutory services, housing associations and through existing supported housing. However the needs of the young adults who are homeless are often complex.

• Around 40% of homeless young adults are also not in education, training or employment
• Substance abuse and mental health issues affect around 1 in 5 young homeless people
• 73% of homelessness organisations indicated that there were not enough support services available for young adults with high support needs
• 6 in 10 homelessness organisations were unable to support a young person due to limited capacity last year

The 18-24 year olds who will be offered support through the Social Impact Bonds, cannot be currently housed in state supported accommodation because of a range of issues, including a history of substance misuse, mental health problems and past evictions. None of the young people are in Education, Employment or Training.

Please download the attachment for the full press release.

Results for the first group (cohort) of 1000 prisoners on the Peterborough Social Bond (SIB) were announced today, demonstrating an 8.4% reduction in reconviction events relative to the comparable national baseline. The project is on course to receive outcome payments in 2016. Based on the trend in performance demonstrated in the first cohort, investors can look forward to a positive return, including the return of capital, on the funds they have invested.

The momentum in the project reflects the significant advantages of the model – that long term funding provides the scope to build a deep understanding of the complex needs of offenders and the flexibility to invest in meeting them.

The Ministry of Justice and the Big Lottery Fund will make payments to investors in 2016 if there is a reduction in reoffending of more than 7.5% ; but the project does not qualify for a payment at this early juncture.

The results were compiled by independent assessor Professor Darrick Joliffe and his team from Qinetiq and the University of Leicester, for the Ministry of Justice, using the PSM methodology. The independent assessor calculated that there were 142 reconvictions per 100 prisoners in Peterborough compared to 155 reconvictions per 100 prisoners in the control group.

“We are very encouraged by the evidence of the positive impact of the support the SIB has provided in the first cohort and are encouraged by continuing improvements in our work with offenders on the second cohort. The SIB has given our delivery partners the resources and the freedom to meet the complex needs of our prison leavers very effectively,” said David Hutchison, CEO of Social Finance.

Sara Llewellin, CEO of the Barrow Cadbury Trust and SIB investor said: “We are delighted with the progress made in the first cohort of the Peterborough Social Impact Bond. As investors, we wanted to prove that by doing something differently, and by being more flexible, we could indeed create a different outcome. An outcome which is a ‘WIN, WIN’; a win for the taxpayer as the volume of repeat crime falls and a win for prisoners and their families when they take charge of restabilising their lives.”

“Resettlement of short term prisoners has long been a blind spot of criminal justice and social welfare systems. The independent funders who came together to invest in the first Social Impact Bond saw an opportunity to move beyond temporary gap-filling towards developing and testing a whole sustainable system. There are many lessons that we need to learn from this bold experiment, from its data driven rigour, to its clear value base, to its ability to contend flexibly with complex social issues. The prospect of getting our investment back with a return is an exciting indication that thorough-going resettlement can create enough cashable savings to make a new system affordable when done properly,” said Julian Corner, CEO of the LankellyChase Foundation and investor in the Peterborough SIB.

“The One Service has helped me with a training course, housing needs, food, electricity and someone has always been on the end of the phone even if it’s just someone to talk to. I have rung them so many times even if it is just to rant and vent what I’m thinking. If it hadn’t have been for this I would be back in prison by now.” Mr Flattley, One Service client, with 24 prison sentences and no previous rehabilitative support.

Please download the attachment for the full press release. 

The solar division of British Gas, Generation Community and Social Finance announce their partnership today to build a pipeline of solar energy projects worth up to £60m to benefit local communities. For the first time a commercial energy partner, British Gas Solar, is working with a community benefit society, Gen Community, to offer solar panels for local government sites such as schools and town halls across the country. The partnership will seek out energy projects where the financial benefits of solar energy from the government’s feed in tariffs are re-invested back into the local community. It is estimated that the solar panels will save up to 40% of the electricity bills for potentially 8,000 rooftop sites. Revenue from the feed in tariffs will flow back into the community to support local social enterprises and educational services targeting fuel poverty. Social Finance will raise up to £60m of institutional loan capital to finance the pipeline. Alongside this, members of the community will be able to invest in the solar projects by purchasing shares and will receive a fair financial return, in addition to social and environmental benefits. Gen Community will oversee the projects, liaising with local authorities and engaging with community organisations. British Gas Solar will be the contractor for the installation of the projects ensuring excellent quality assurance on deployment and will continue to operate and maintain the systems. Social Finance is the lead arranger of the 20 year inflation linked, amortising, asset-backed Social Solar Bond. “This is an exciting chance to deliver renewable energy both professionally and to a commercial standard, whilst keeping community ownership and values at the core of the project. We hope that local authorities and housing associations come forward to take advantage of this new partnership”, said James Mansfield, Director of Gen Community. Mike Chessum, Head of Energy Construction Services at British Gas, said:” Our partnership with Gen Community signals a breakthrough in the delivery of community energy across the UK. We are proud to be the first commercial energy partner working alongside social enterprises that will provide new ways of delivering power to communities.” Richard Speak, Head of Sustainable Communities at Social Finance, said: “Community energy deals can act as catalyst for mainstream investment markets to align financial returns with tangible social impact. These deals help alleviate fuel poverty for our poorest households and bring the financial benefits back in to the communities.” Nick Hurd, Minister for Civil Society, said: “It’s great news that the grant from our Investment and Contract Readiness Fund helped Generation Community to grow and develop such innovative projects. The partnership with British Gas is a significant endorsement of the role that social enterprise can play in delivering services alongside benefitting communities. We hope that this will be the first of many similar partnerships.” This announcement comes as the Department for Energy and Climate Change (DECC) looks to promote its community energy strategy, encouraging commercial developers to work with community energy groups. ENDS Contact details; www.gen-community.co.uk/laha/ webpage for project partnership  Gen Community: Andy Heald: Director – 07899891667 Andy@gen-community.co.uk James Mansfield: Director – 07747335841 James@gen-community.co.uk British Gas: Katie Alloway, PR and Strategic Planning manager – 07789 575915 katie.alloway2@britishgas.co.uk Social Finance: Alisa Helbitz, Director of Communications – 07500 433044 alisa.helbitz@socialfinance.org.uk Notes to Editors:

• Social solar bonds will accelerate installations of solar panels on the roofs of schools and council buildings across the country, bringing social, environmental and financial benefit. Local authority contracts are expected to be between £5 and £10 million (a minimum of 5 Megawatts) and will not require local authorities to make any capital outlays.
• Organisations can take advantage of a free consultation on the potential for solar PV on their rooftops by contacting Gen Community.
• Earlier this year, Gen Community was awarded the Cabinet Office Investment Readiness and Contract Fund grant, which funded work with Social Finance, a social investment intermediary to develop the first project. The partnership with British Gas Solar is an extension of this project.
• Gen Community was introduced to British Gas Solar through Ignite Social Enterprise LP, an impact investment fund backed by Centrica.
• Despite the legislative changes, the UK solar industry has been growing steadily, with 77MWp installed in 2010, 1GWp by 2011 and 2.2 GWp by the end of 2013. The Department for Energy and Climate Change (DECC) has considerably increased the ambition for UK solar, with a target 22GWp install target by 2020 and the inclusion, for the first time, of PV as a core renewable energy technology.
• The Feed-in-Tariff for UK Solar PV was introduced in April 2010. , The scheme is designed to make small scale renewable energy generation economically attractive and stimulate market demand. The FiT is a UK statutory legal instrument that places an obligation on electricity supply companies to pay a guaranteed, long term subsidy to the owners of small renewable energy generating assets.

About Generation Community – http://www.gen-community.co.uk Gen Community installed over 200kWp of solar photovoltaic (PV) on fuel poor homes in Newport, South Wales, funded through a community share offer. The Newport project received the 2014 Community Energy Award by the Renewable Energy Association .In total, Gen Community have raised over £1 million in community share offers. Gen Community’s aim is for the low-carbon economy to be developed by maximising social benefit through mutual ownership of energy generation, public engagement and retained community benefit. The legal form adopted by Gen Community is a Community Benefit Society The Society is registered with the FCA (Financial Conduct Authority) – number 31214 R. About Social Finance – www.socialfinance.org.uk Social Finance is a not for profit organisation that partners with government, the social sector and the financial community to find better ways of tackling social problems in the UK. Earlier this year, Social Finance raised a £10 million loan note for Empower Community to provide access to free daytime solar energy for social housing in Sunderland. Founded in 2007, Social Finance has raised over £20m in social investment and is the originator of the Social Impact Bond model. About British Gas Solar – www.britishgas.co.uk British Gas Solar, part of British Gas, provides bespoke solar PV and thermal panel installations and financing packages for homes and businesses across the UK Established in 1994, British Gas Solar’s team of experts has installed thousands of solar panels and worked with hundreds homes and businesses to help them save money and reduce their carbon footprint. The company is invested in developing a market leading range of solar energy solutions, enabling customers to benefit from our energy expertise, world leading engineering capabilities, health & safety, and quality assurances. British Gas is the UK’s leading energy supplier, and serves around 11 million homes in Britain –nearly half the country’s homes – as well as providing energy to around half a million UK businesses. British Gas provides value for money, dedicated customer service, innovative energy solutions and the highest quality Home Services expertise in the country. Find out more at www.britishgas.co.uk. About Ignite – www.ignitesocialenterprise.com Ignite is the UK’s first impact investment fund with a focus on energy. Ignite believes that energy entrepreneurs have a vital role to play in building a better society and the fund was established to support them achieve their potential. Ignite invests people and money into emerging and mature organisations that have a clear vision of how they benefit society. By focussing on energy, Ignite is driving innovation at every point of the energy chain – from sourcing and generation through to supply, service and saving energy. And by investing in social enterprises Ignite is making a positive impact on employment, income, housing and local communities. With Backing from Centrica, Ignite is providing funding of £10 million over the next ten years, and will make investments of between £50k and £2m

Social Finance Ltd announces the appointments of Derrick Anderson, Ciarán Devane and Robert Gillespie as Non-Executive Directors to the Social Finance Board.

Bernard Horn, Chairman, said: “I am absolutely delighted that Derrick, Ciarán and Robert are joining the Board. Social Finance is one of the most imaginative organisations in the impact investment arena. Our work has been enhanced and encouraged by the engagement of an outstanding Board since we started in late 2007. The addition of these new directors, all pre-eminent in their fields, is further testament to our ability to engage with individuals of the highest calibre in the furtherance of our mission.”

Derrick Anderson, CBE, is Chief Executive of Lambeth Council since March 2006. He has over thirty years’ senior management experience in local government and more than 30 years in the public sector. Derrick was voted Public Leader of the Year in the Guardian Public Services Awards 2012. He was awarded a CBE for services to local government in January 2003.

Ciarán Devane joined Macmillan Cancer Support as Chief Executive in May 2007. Ciarán co-chairs the National Cancer Survivorship Initiative and is a trustee of the National Council for Voluntary Organisation and the Makaton Charity. In January 2012, Ciarán Devane was appointed as a Non-Executive Director of NHS England.

Robert Gillespie is the former Director General of the Takeovers and Mergers Panel, senior Managing Director of Evercore Partners and former Global Head of Investments at UBS following a 27 year career in the investment bank. Currently Robert serves as Chairman of Somerset House, Durham University Council and the Boat Race Company.

Social Finance is a not-for-profit financial intermediary developing new models for driving systemic social change. Social Finance is the originator and foremost developer of Social Impact Bonds in the UK and abroad, in partnership with local organisations.

For more information, please contact Alisa Helbitz (t: 020 7667 6388 e: alisa.helbitz@socialfinance.org.uk)

Visit www.socialfinance.org.uk or follow us on Twitter @socfinuk 

“We’re always looking for new ways to make a positive difference and influence change”

Empower Community will use the funds to acquire and manage existing solar photovoltaic installations on 2327 Gentoo social homes and 6 corporate buildings in the Sunderland area. It will continue to provide thousands of tenants with access to free daytime energy, which can reduce bills by up to 40% and will reduce carbon emissions with clean solar energy. With the refinancing of Gentoo’s solar panels, Gentoo plans to roll out PV panels to an additional 3000 homes in Sunderland.

Empower Community Management’s Alex Grayson says “The beauty of this deal is that everybody’s interests are aligned: the investor makes solid financial returns, with measurable social and environmental impact; tenants enjoy access to free daytime power, which helps them escape fuel poverty; Gentoo enjoys an ongoing return and financing to continue their exciting developments and the community receives funding for local initiatives from the profits.”

Peter Walls, Chief Executive, Gentoo Group said: “We’re always looking for new ways to make a positive difference and influence change – this innovative deal with Empower Community does just that. Fuel poverty is a genuine concern with rising energy costs – ‘heat or eat’ is a reality that many vulnerable individuals in our society are now facing. This is a unique way to deliver more solar solutions to our customers, at no cost, with the additional benefits that the local community fund will bring.”

Since the introduction of the Feed-in Tariff in 2010, despite some reviews along the way, the stable, long-term and index-linked nature of revenues from these projects have been attracting increasing interest from the UK institutional investment markets, but this is the first at-scale ‘balanced stakeholder’ model to arrive.

Today, the Ministry of Justice released interim re-conviction statistics for the Payment by Results pilots in HMP Peterborough and HMP Doncaster. These figures show that there has been more than 6% decline in the frequency of reconvictions events per 100 Peterborough prisoners from 2008-10 to 2010-2012. This compares to 16% increase nationally from 2008-10 to 2010-12.

The Department of Work and Pensions (DWP) today announced that it has awarded two contracts worth £7 million from the Innovation Fund to two social investment partnerships established by Social Finance. The Social Impact Bonds will fund interventions to work with around 2,500 14-15 year olds who are disadvantaged or at risk of disadvantage to help them participate and succeed in education or training and thereby improve their employability.

The programmes will be delivered by Adviza in the Thames Valley and Teens and Toddlers in the North West of England. This is an exciting opportunity to engage a wide range of social investors and work with social organisations who deliver effective programmes to raise the aspirations of young people.

The DWP Innovation Fund is part of a series of government measures to tackle youth unemployment. The DWP has identified a number of outcomes against which the contracts will be measured including improved behaviour, school attendance, educational qualifications and employment opportunities. Outcomes payments from the Innovation Fund will be paid over three and half years. Unlike typical social service delivery, the funding is provided at risk by social investors, including Bridges Ventures, Big Society Capital, Barrow Cadbury Trust and the Impetus Trust, whose financial return is aligned to the positive social impact of meeting pre-agreed educational, training and employment outcomes.

Social Finance, confirms the value of Jam Jar Accounts to UK consumers in a report for HM Treasury. The UK’s biggest providers of accounts with Jam Jar features, Secure Trust Bank and Think Banking, were today awarded the first ever Fairbanking Marks in recognition of their contribution to the financial wellbeing of UK consumers.