We at Social Finance are excited and inspired by Big Lottery’s launch of a new £40 million fund to support the SIB market in the UK. In partnership with the Cabinet Office’s £20 million Social Outcomes Fund, which was announced last November, the funds will be used to address the challenge of government silos – a challenge in the US market as well.
Specifically, the monies will be used in situations where savings resulting from the use of a SIB would be distributed across several public sector bodies, such that the costs would outweigh the benefits for each of the bodies individually. As our upcoming White Paper, due to be published in September, observes:
The problem, of course, is that social problems are not siloed but multifaceted, spanning sectors and levels of government and foundations alike. This means that responses to these problems must be equally multifaceted – but traditional divisions within the government do not support this hybrid approach.
By supplying funds that local, state, and federal government entities can use to pay for successful outcomes, the UK initiative is an important step in the development of the SIB market.
Any chance of the US following in their footsteps?