Richard Todd, Associate Director richard.todd@socialfinance.org.uk
Social Finance is authorised and regulated by the Financial Conduct Authority FCA No: 497568

Social Finance works with government, social ventures and investors to unlock financial barriers and help drive social change.
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We create financial structures and implement programmes that bring stable and sustainable funding to organisations dealing with social issues
Change the way government seeks to tackle problems
Help build and support growth of strong, effective social enterprises
Expand the range of investors able to participate in social investment
DELIVER SUSTAINABLE
AND SCALABLE SOCIAL
CHANGE
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Since late 2012, Social Finance has been working with Shared Lives Plus to support a national expansion of Shared
Lives.
A proportion of this work was funded by the Cabinet Office Investment and Contract
Readiness Fund.
The aim of the work has been to develop a business case for expanding Shared Lives, and an investment model to enable expansion to be delivered.
An interim summary of this work was published in the report, “Investing in
Shared Lives”, highlighting the benefits of
Shared Lives and a proposed model for its expansion.
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Social investment approaches are built upon analysis of the underlying social problem:
1. What is the social need we are trying to meet?
Social investment in practice
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2. Are there interventions which meet this need?
3. Are there revenue streams that could support the intervention?
4. Would a new investing or contracting approach add value to service users, providers and commissioners?
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Social investment already funds services addressing a range of social issues with new provision. These include:
• Reducing the number of adolescents entering the care system
• Supporting entrenched rough sleepers to achieve a stable lifestyle
• Helping young people at risk of being not in education, training and employment to gain qualifications and enter work

The social care system needs to change radically if it is to meet funding challenges but also deliver better, more personalised care, built around individuals and their potential.
• This situation is particularly acute for adults with learning disabilities.
Evidence shows that community-based support enables greater independence, inclusion and choice, and that challenging behaviour lessens with the right support.
Which are the models that can support vulnerable adults, work with them to build their own capacity and unlock community resources?
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Shared Lives is a form of care where individuals in a community share their family and community life with someone in need of care support.
• Arrangements are built around both the needs of individuals and their potential to develop life-skills and self-confidence in a supportive family environment.
• Users of Shared Lives are empowered to take greater control over more fulfilling lives as part of their community.
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Current Shared Lives provision performs well on measures of quality, with twice as many Shared Lives schemes rated ‘Excellent’ than any other form of care 1 .
Today, Shared Lives arrangements represent just 2.2% of all adult residential and nursing care placements in England 2 .
Notes:
1 – The Adult Social Care Market and The Quality of Services. Care Quality Commission (2010)
2 – Adult Social Care Combined Activity Returns 2012-13. National Adult Social Care Information Centre (NASCIS)
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In addition, our analysis has shown that Shared Lives can provide a cost-effective means of delivering high quality, person-centred care.
Average annual savings per client in Shared Lives arrangements (£k) 1
30
7
15
10
5
25
20
0
Adults with learning disabilities Adults with mental health support needs
IN ADDITION TO PROVIDING HIGH-QUALITY CARE, A WELL-RUN SHARED LIVES
SERVICE COULD GENERATE SAVINGS FOR LOCAL COMMISSIONERS.
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Note: 1 – Based on a cost-benefit analysis carried out across three local authorities, comparing the local costs of Shared Lives arrangements with residential care and supported accommodation placements.

DETOUR – A SOCIAL INVESTMENT APPROACH: COLLATED SERVICE
INVOICING DATA SET
ILLUSTRATIVE DATA ONLY
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©Social Finance 2014

ILLUSTRATIVE DATA ONLY
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Service Type
All
Cash Individual Budget Payments
Day Care
Home Care
Korsakoff
Nursing Residential
4
Residential
4
Supported Accommodation
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No of clients
582
20
5
113
32
43
138
226
% of total
100%
3%
1%
19%
5%
7%
24%
39%
Spend/week
(£) % of total
193,368 100%
3,069
354
11,678
15,003
2%
0%
6%
8%
27,079 14%
62,123
74,062
32%
38%
Implied annual Average per person cost (£)
2 per week (£)
3
10,082,229 332
160,005
18,440
608,899
782,280
146
64
96
469
1,411,898 636
3,239,106
3,861,601
462
328
2500
2000
1500
1000
500
0
©Social Finance 2014
Residential care
Nursing care
Supported Accommodation
Other

In working with many local authorities and Shared Lives services across the country, a set of common barriers have emerged:
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Lack of up-front investment
Lack of capacity and expertise
Sustainable growth can be challenging
Contracting models that limit growth
Up-front investment is required in order to fund the recruitment of new staff members and carers, training and development
High-quality expansion can require modelspecific knowledge, such as how to best recruit and match carers with those requiring support
Shared Lives services require a strong management team to enable continued expansion – for instance in recruiting high quality staff
Many services still operate within a block contracting arrangement, which does not incentivise the creation of new arrangements
Local authorities have struggled to provide upfront funding to invest in services before savings are yielded
Few high quality independent providers of Shared Lives services exist, limiting options for local provision
Continued focus on performance is often lacking, limiting the scope for development
Schemes, even when external of local authorities, do not have financial capabilities support innovative contracts
A SOCIAL INVESTMENT MODEL SHOULD AIM TO OVERCOME THESE PROBLEMS IN SUCH A WAY SO
AS TO BE ABLE TO RESPOND TO GROWING NATIONAL INTEREST IN THE SHARED LIVES MODEL
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Enabling growth through work with commissioners
Local authorities committed to expansion of Shared
Lives
Incubation pathway
3-5 year incubation period
Growing Shared
Lives schemes
Schemes set up to thrive post-incubation
Mature Shared Lives schemes
• Advice to local authorities looking to expand Shared
Lives provision
• On-going advice and support to schemes
• Investment in growth
• Connection to network of incubated schemes to share learning
THE INCUBATOR WILL BRING BOTH PRACTICAL EXPERTISE AND INVESTMENT IN LOCAL
SERVICES TO GROW SHARED LIVES
©Social Finance 2014

We continue to work closely with multiple local authorities as they finalise their approach to expanding local schemes.
• Since launching the findings of our work, we have had interest from a number of local authorities looking to expand local provision, either through the spin-out of existing services or the development of new services.
• We have also had significant support from national stakeholders.
In order to respond to this momentum, and to have capital ready to support the first wave of scheme expansions, we are raising an initial £1m of social investment.
We have developed a pathway for local authorities to expand Shared Lives locally, and identify the most appropriate funding and contracting options.
• The first stage of this is a health-check on existing provision, the potential to expand services and a developing an outline pathway to expansion.
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