Australia’s first social impact bond targeting homelessness has been effective in tackling the crisis according to researchers from Flinders University and University of Western Australia.
Social impact bonds (SIBs), which were pioneered in Australia by Social Ventures Australia, involve private investors financing the delivery of social service programs, with governments repaying the investors when positive outcomes are achieved.
The majority of 575 people in South Australia with a history of chronic homelessness have found stable housing and are well on the way to a better life after three years of intensive support under the ‘Aspire’ program.
“Some of the Aspire participants said no other program had worked for them, and they had lost all hope by the time they came to the program,” said Flinders University research fellow Dr Veronica Coram.
“However, the final report finds Aspire was a life-changer for many participants who avoided continued rough sleeping, jail or hospitalisation, and whose health and wellbeing would otherwise have declined further.”
SA Premier Peter Malinauskas said: “Aspire is clearly a successful program which has had a positive impact on so many lives, not just helping people in their moment of crisis but setting them up for the longer term.”
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Minister for Human Services Nat Cook said the results show the benefits of intensive wrap-around supports for people who have experienced lengthy or re-current homelessness, complex needs and multiple barriers to housing.
“These barriers can be incredibly difficult to overcome, and this report shows what really works in terms of helping people overcome those barriers,” she said.
Flinders University Professor of Social Impact Ian Goodwin-Smith said: “What Aspire shows is that if you stick with people experiencing chronic homelessness and work with them closely, you get great results for people and great results for the community.
“That’s what the evidence shows. That’s what the investment in Aspire has achieved – massive improvements in people’s lives and a significant return on investment in terms of savings to the public purse.”
Social Ventures Australia CEO Suzie Riddell said: “SVA’s vision is for an Australia where all people and communities can thrive and we’re delighted that the Aspire SIB has made a lasting difference to hundreds of people experiencing persistent homelessness in Adelaide,” says Ms Riddell.
“We design SIBs to generate very high quality evidence about whether a program works, as well as show how governments can save money across departments – including health, housing and justices – by investing in high-quality programs that can change lives.
“We know that this SIB and the evaluation will contribute to the growing evidence base for intensive ‘housing first’ approaches, with sustained wraparound support for people experiencing homelessness which can be used to create impact at an even greater scale.”
