Announcing the Better Futures Fund: A Ten-Year Commitment to Vulnerable Children
United Kingdom Introduces £500 Million Fund for Social Results, Aimed at Aiding Vulnerable Children
The UK government has unveiled a significant new initiative, the Better Futures Fund, designed to support and improve the lives of vulnerable children and families across the nation. This groundbreaking £500m (€576m) fund, the largest of its kind globally, is set to impact over 200,000 children and their families over the course of a decade.
The Aims of the Better Futures Fund
The Better Futures Fund has been established with the primary objectives of:
- Enhancing Education: Boosting school attendance and addressing behavioural issues to improve educational outcomes.
- Preventing Reoffending: Implementing early interventions to deter young people from entering or re-entering the criminal justice system.
- Mental Health Support: Providing essential mental health services to ensure young people receive the care they need.
- Safe Homes and Environments: Offering support systems to ensure vulnerable families have stable and secure living conditions.
- Youth Employment: Encouraging opportunities for young people to engage in meaningful employment and education.
Collaborative Approach
The Better Futures Fund brings together a diverse group of stakeholders, including national and local government, local communities, charities, social enterprises, investors, and philanthropists. Notable supporters of the fund include Save the Children UK, The King’s Trust, and Oxford University’s Blavatnik School of Government.
Social Outcomes Partnerships
The Better Futures Fund operates through social outcomes partnerships, where social investors fund projects that deliver specific social outcomes. If these outcomes are achieved, the government repays the investors with interest. This collaborative approach allows for the effective allocation of resources and the realization of the fund's objectives.
A Catalyst for Change
Stephen Muers, CEO of Better Society Capital (BSC), expressed his satisfaction with the Better Futures Fund, calling it a "great outcome" of talks between the government and social investors. Muers believes the fund is a clear demonstration of the UK government's commitment to seeking innovative ways of increasing social investment.
Expectations for the Future
While specific details about the Better Futures Fund are still forthcoming, it is anticipated that the fund will support projects in areas such as improving school attendance and behaviour, boosting mental health care for young people, and offering youth employment opportunities. The launch of the Better Futures Fund is expected to serve as a catalyst for further similar initiatives in the future.
[1] The Social Impact Advisory Group, consisting of government, socially-motivated investors, banks, civil society, and social investment experts, has played a crucial role in shaping the Better Futures Fund.
[2] A research commissioned by BSC, published in mid-2024, estimated that the use of social outcomes contracts to deliver public services in the UK had created nine times more in public value than they cost to provide.
[3] The Better Futures Fund is part of a wider government initiative known as Plan for Change, which aims to improve opportunities for children.
[4] The exact timeline for the signing of the first outcomes contracts supported by the Better Futures Fund remains uncertain.
- The Better Futures Fund, a ten-year commitment to vulnerable children, will focus on financial inclusion by implementing social outcomes partnerships, where investors fund projects that deliver specific social outcomes in areas such as education, mental health support, and youth employment.
- Development finance is a key aspect of the Better Futures Fund, as it aims to support businesses offering education-and-self-development opportunities, with the potential return being the social impact on youth and families.
- As part of the Plan for Change initiative, the Better Futures Fund will use blended finance strategies, bringing together various stakeholders like government, charities, social enterprises, investors, and philanthropists, to create a significant financial impact on the lives of over 200,000 children and their families.
