In the Financial Times, GSG Impact President Sir Ronald Cohen sets out how outcomes-based public spending and social outcomes partnerships can improve lives and deliver better value for taxpayers.

Why social outcomes partnerships matter

Europe faces rising deficits and debt from defence, health, social welfare, and the energy transition. With budgets constrained, Sir Ronald proposes impact investment through social outcomes partnerships, channelling private capital to social issues, and paying investors only when improved outcomes are achieved.

Proof that social outcomes partnerships work

The UK’s first Social Impact Bond (SIB) in 2010 tied reduced reoffending to investor returns and lowered risk and cost to the Treasury. Since then, hundreds of SIBs/DIBs across multiple sectors and countries have emerged, with evidence that outcomes contracts can deliver services at a lower cost while generating fiscal and social returns.

Momentum in the UK

The government’s Better Futures Fund will bring together central government, local authorities, and philanthropy to support outcomes for vulnerable children and young people – with the potential to scale outcomes-based commissioning across areas such as homelessness, employment, and skills.

“There is a way forward: impact investment through social outcomes partnerships.” Sir Ronald Cohen, Co-founder and President of GSG Impact