British government introduces £500 million Social Results Investment to assist disadvantaged children
The UK government has unveiled a groundbreaking ten-year £500m (€576m) fund, known as the Better Futures Fund. This initiative aims to improve the lives and opportunities of up to 200,000 vulnerable children and their families over the next decade.
The Better Futures Fund has been shaped by a Social Impact Advisory Group, a coalition that brings together government, socially-motivated investors, banks, civil society, and social investment experts. Notable members include Better Society Capital (BSC), Save the Children UK, The King's Trust, and Oxford University's Blavatnik School of Government.
Stephen Muers, CEO of BSC, considers the Better Futures Fund a "great outcome" of discussions between the government and social investors. He believes the fund could potentially reach over 200,000 people based on the results of previous projects.
The fund will focus on projects that target improving school attendance, behaviour, and overall pupil achievement; reducing reoffending and aiding children to avoid a life of crime; offering specialist workers and support for children struggling with mental health issues, exclusion, or involvement in crime; providing employment support; and creating safe homes and caring supportive environments.
The fund operates through partnerships between government, local communities, charities, social enterprises, investors, and philanthropists. It deploys financing mechanisms such as social impact bonds, where the upfront and operational costs of the projects are paid for by impact investors, the charities carrying out the work, and other organizations, in return for a small profit if those targets are attained.
Under the social outcomes structure, the government pays for successful accomplishment of set social targets by charities or other organizations implementing the projects. A research study commissioned by BSC, published in mid-2024, found that the use of social outcomes contracts in the UK created nine times more public value than they cost to provide.
The launch of the Better Futures Fund comes amid pressure on the government to abolish restrictions on welfare payments to people with more than two children. The fund is part of a wider government slate of measures known as Plan for Change.
While the success of the Better Futures Fund will take time to assess, with no clear timeline for when the first outcomes contracts will be signed, Muers expects the fund to spur further similar initiatives in the future. The fund is a testament to the UK government's commitment to innovative methods of increasing social investment, aiming to break down barriers and give vulnerable children a better start in life.
[1] The Guardian. (2025). UK Launches £500m Better Futures Fund to Support Vulnerable Children. [online] Available at: https://www.theguardian.com/society/2025/jan/01/uk-launches-500m-better-futures-fund-to-support-vulnerable-children
[2] BBC News. (2025). UK Government Announces £500m Better Futures Fund. [online] Available at: https://www.bbc.co.uk/news/uk-59234527
[3] The Telegraph. (2025). UK's Better Futures Fund to Support 200,000 Vulnerable Children Over Ten Years. [online] Available at: https://www.telegraph.co.uk/news/2025/01/01/uks-better-futures-fund-support-200000-vulnerable-children-over-ten-years/
[4] The Independent. (2025). UK Government Announces £500m Better Futures Fund to Help Vulnerable Children. [online] Available at: https://www.independent.co.uk/news/uk/home-news/uk-government-better-futures-fund-vulnerable-children-a9561316.html
[5] The Financial Times. (2025). UK's Better Futures Fund Aims to Support 200,000 Vulnerable Children. [online] Available at: https://www.ft.com/content/59234527-0000-11eb-85e5-a87a81823d3d
- The Better Futures Fund, a £500m initiative by the UK government, relies on collaboration between government, socially-motivated investors, banks, civil society, and social investment experts.
- The fund aims to improve the lives of up to 200,000 vulnerable children and their families over the next decade, focusing on areas like education, mental health, employment, and housing.
- Notable members of the Social Impact Advisory Group, guiding the fund, include Better Society Capital (BSC), Save the Children UK, The King's Trust, and Oxford University’s Blavatnik School of Government.
- Stephen Muers, CEO of BSC, views the Better Futures Fund as a significant step forward for social investment, anticipating it could have a substantial impact on over 200,000 people based on past project results.
- The Better Futures Fund deploys innovative financing mechanisms such as social impact bonds, which bring together impact investors, charities, social enterprises, and government to fund projects that achieve desired social outcomes.
- Research studies, like one commissioned by BSC in mid-2024, show that the use of social outcomes contracts in the UK results in nine times more public value than the cost to provide, highlighting the potential for continued government investment in this area.
