New Social Impact Bond could save taxpayers up to £22bn

 
Joseph Millis
Investment from big banks and other private firms in “Social Impact Bonds” could save taxpayers £22bn and rev­ol­utionise public services, a new report Capital Investment has said.

These bonds encourage social ent­erprises to come up with ideas to address soc­ial problems. The government ident­ifies the cost of the problems, and investors front the cash to solve them.

Tory London Assembly member James Cleverly, the report’s author, said: “A charity has a new proven idea to cut drug use and prevent the most vulnerable from becoming addicts. The government calculates the long-term costs of drug addiction on society. An investor who believes in the charity’s new … idea provides the needed funds, and the government agrees to give a portion of the savings to the investor, if the outcomes are met.

“If we could treat even half the UK’s drug users, we could save about £22bn over their lifetimes.”