This is just a quick note about a Pay for Success deal in New South Wales, Australia, that is working on moving children out of the foster system. The program recently announced that the investors will receive a 7.5% return on their investment during the first year of the program, after it moved 28 children back to their families’ homes. From Australia’s Tresury’s website on the program:
The $7 million bond will initially fund four centres and pay for the expansion of UnitingCare Burnside’s Newpin program which aims to break the destructive cycle of family relationships that lead to abuse and neglect.
By providing intensive support to improve parenting styles, behaviour and practices, the program helps parents to build positive parent-child relationships. Newpin safely restores children in care to their families and prevents entry into care.
The restoration rate of children who enter the program is the key performance indicator which produces the interest rate and the repayment obligations of the bond. The Newpin SBB targets a financial return of 10 to 12 percent per annum. This is dependent on the successful performance of the service and the outcomes it achieves. In its first year the Bond delivered a return of 7.5 per cent as result of UnitingCare Burnside successfully restoring 28 children in out-of-home care to their families and preventing children in 10 at-risk families from entering care.