2017 CO Life Chances Fund Children S Services Topic Guide Dec

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Children’s Services
Why Children’s Services?
There are currently approximately 70,000 children in care in
England. This number has been increasing steadily over the past
seven years and is now higher than at any point since 1985. The
long-term impact of the poor outcomes experienced by this group
of young people has a broader impact on society and the taxpayer. For example, residential care costs approximately three
times more than foster care and there is the potential for
significant cashable savings - in the region of £190,000 per child
per year - to be achieved by supporting successful transitions
from residential care to foster care.
¡ Outcomes for those who spend significant periods of their
childhoods in care, especially residential care, are poor in
terms of education, employment, and other areas. Among
children who have been in care for at least 12 months, 18%
of children in foster care and just 3% of those in residential
care achieve 5 GCSEs A*-C including English and Maths compared to 58% of their peers.
¡

Based on 2015 data, 45% of care leavers aged between 19
and 21 years old were not in education, employment or
training (NEET) compared to 13% of 18 year olds in the
general population. Children in care are also four times more
likely than their peers to be affected by mental health
challenges. Furthermore, 23% of the adult prison population
has spent time in care

¡

Social Impact Bonds (SIBs) in children’s services aim to
protect vulnerable young people from life-long disadvantage
by preventing entry into care, by reducing the amount of time
spent in care, or by supporting young people to transition
from residential care to stable, long-term foster placements.

What kinds of proposals is the
Life Chances Fund looking for?
Five children’s services SIBs have
already launched across the UK and
several more are currently in
development. The Life Chances
Fund is supportive of proposals that
seek to replicate existing models as
well as those that aim to explore
new approaches.

What is a social impact bond?
A SIB is a subset of outcomesbased contracts where a social
investor, seeking social as well as
financial returns, provides the upfront funding required to deliver the
service. The outcomes-based
contract will therefore involve a
commissioner (government), a
provider (usually a charity or a
social enterprise) and a social
investor.
.

Cohort

Interventions

SIBs require a clearly defined cohort for whom
outcomes are expected to be poor and which
can be easily identified and referred to a suitable
intervention. Local commissioners will be best
placed to determine which children they wish to
prioritise for a potential SIB. However, there are
two cohorts for which there is both a strong
theoretical case and an already emerging
evidence base that SIBs work well:

A range of different interventions exist to support
children in care and/or their families. A nonexhaustive list of available interventions is
provided below and we would encourage all
applicants to investigate the options in detail.
¡ Multidimensional Treatment Foster Care
(MTFC): an intensive foster care programme
for young people who have engaged in
serious, chronic antisocial behaviour, youth
offending and conduct problems.

1. Supporting the families of children
considered to be on the edge of care, due
to their behavioural or emotional issues,
to reduce the amount of time they spend
in care
2. Placing children previously in residential
care with foster parents and providing
additional support to those foster parents
to help make that placement sustainable
¡

¡

The children’s services theme of the Life
Chances Fund is intended to focus on
improving the life chances of young people
who are currently in care or on the edge of
care. In addition to the cohorts described
above, other potential areas of interest may
also include: supporting children who have
experienced multiple disruptions to foster
placements and providing support to foster
parents to help make the placement
sustainable; supporting unaccompanied
asylum seekers under the age of 16 to find
stable foster placements; or providing
additional support to foster parents of
children with disabilities to help ensure more
sustainable placements.
SIBs that aim to support care leavers (and
other young people who have had frequent
contact with children’s social care) aged 16
and over as they transition from the social
care system to adulthood would not be
considered as part of this theme, as there is
a parallel application process through DfE’s
Children’s Social Care Innovation
Programme to obtain funding for this cohort.

¡

Multi-Systemic Therapy (MST): an
intensive family and community based
intervention that targets the multiple causes
of serious conduct problems and offending in
young people, aiming to increase the skills of
parents and caregivers and to change the
behaviour of the young person.

¡

Functional Family Therapy (FFT): a family
therapy intervention for young people with a
strong history of offending (or violent,
behavioural problems), focusing on family
behavioural therapy that includes parent
training and communication training.

¡

Community Trust Early Intervention
Programme: a holistic intervention to reduce
the risk of anti-social behaviour and improve
life chances of children from dysfunctional
families who may have acute needs and
issues including neglect and low attainment

¡

Positive Parenting Programme: a parenting
programme that gives parents simple and
practical strategies to help them confidently
manage their children’s behaviour, prevent
problems developing and build strong,
healthy relationships

¡

Conflict Resolution Uncut: an intervention
for boys to increase awareness of
alternatives to resolving conflict through
violent means and prevent pathways into
offending

¡

Respect Young People’s Programme: an
intervention for families experiencing or
propagating aggressive behaviour to prevent
progression to offending

¡

LifeSkills Training: an intervention to
prevent substance abuse and youth violence
in a personal and social skills setting

Live SIBs in UK Children’s Services
Please go to the Centre for SIBs website for more detailed case studies on some of these projects.
Essex County Council is funding MST over five years for 380 young people on the edge of care,
working with them and their families to reduce the amount of time they spend in care. Outcome
payments are capped at £7m, and the SIB should generate £10.3m net savings for the council.
Manchester City Council is funding MTFC-A over five years (eight years including the roll-off period) to
help at least 95 young people with emotional and behavioural problems in residential care to transition
to stable family placements. The maximum outcome payment per child is set at £148,600 per child. This
compares to a cost of £546,000 for an average looked-after young person who enters residential care
and remains there for 182 weeks (3.5 years) at approx. £3,000 per week.
Birmingham City Council is funding Core Assets’ Residential Migration Model over four years (up to
seven years including the roll-off period) to help up to 115 young people who have spent at least 20
weeks in residential care transition to family placements. Payments for maintaining stable family
placements are set at £1,190 per week and a bullet payment is made at graduation after 52 weeks for
the completion of the placement of £29,050.
Evidence-Based Social Investment (EBSI) is supporting multiple local authorities to commission
services, including MST and MFTC, to divert children and young people from residential care, support
them to remain with their families, or to help them to live in family-based placements such as fostering.
It’s All About Me (IAAM) is a SIB developed by voluntary adoption agencies and operating as a
network under which they are funded to find and support adoptive families for harder-to-place
children. It was targeted to be able to deliver families for up to 650 children over ten years. The total
outcome payment per child of £54,000 represents around half the amount it would cost to keep a child
in care over the same two year period.



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