What is Social Investment and how will this impact on social service agencies?

Aotearoa New Zealand is on the brink of significant changes in the way social services are funded and delivered, thanks to the Government's new social investment approach. The social investment strategy aims to improve the lives of individuals and communities by making targeted investments in social services, focusing on long-term outcomes rather than short-term fixes. As social service organisations, it is crucial to understand how this new approach will impact our operations and how we can prepare to thrive under this new model.

Understanding the Social Investment Approach

The social investment approach centres on using data and evidence to inform funding decisions. By identifying which interventions work best for different populations, the Government hopes to allocate resources more effectively, reducing long-term social and economic costs. This approach requires a shift from traditional funding models, which often focus on outputs (e.g., the number of clients served) to outcomes (e.g., improvements in client well-being).

The Role of the Social Investment Agency

From 1 July, the Social Investment Agency will lead the development of social investment across the Government, focusing on understanding who needs investment, what works for them, and how to measure progress. The Social Investment Fund, set to begin investing in 2025, will work directly with community, non-governmental organisations (NGOs), and iwi providers to commission outcomes for vulnerable New Zealanders.

The agency will also develop the necessary tools to deliver social investment programmes and work with other agencies to apply this approach to existing supports. The creation of the Social Investment Board as a ministerial advisory committee will provide external guidance, while a group of Social Investment Ministers will help drive the approach across the system.

Potential Impacts on Social Service Organisations

The establishment of a standalone Social Investment Agency marks a significant development in driving the social investment approach. Minister Nicola Willis emphasised, despite substantial annual investments in social services, the desired outcomes for all New Zealanders have not been achieved. In the Government’s view, the lack of appropriate support for the most vulnerable is evident in various social challenges, including welfare dependency, declining school attendance, poorer health outcomes, and rising crime rates.

Two likely impacts on social service organisations include:

• Increased Accountability and Transparency: Social service organisations will need to demonstrate the effectiveness of their programmes through robust data collection and reporting. This shift towards evidence-based practice means that organisations must invest in developing their evaluation capabilities.

• Funding Based on Outcomes: Funding will increasingly be tied to the achievement of specific outcomes. Organisations that can prove their interventions lead to positive, long-term changes in clients' lives will be better positioned to secure funding.

Preparing for the Social Investment Approach

Whilst it is still not clear exactly how the social investment approach will be outworked in practice, there are some steps social service organisations can take to prepare:

• Develop Robust Evaluation Frameworks: Invest in developing comprehensive evaluation frameworks that can measure both short-term and long-term outcomes. This involves identifying key performance indicators (KPIs) and using data to track progress and make informed adjustments to programmes.

• Undertake Evaluation of Current Services: Organisations can build evidence of the effectiveness of their current service offerings through undertaking programme evaluations.

• Enhance Data Literacy: Build the capacity of your team to collect, analyse, and interpret data. This can involve training staff in data management and analysis tools, ensuring that your organisation can effectively use data to drive decision-making.

• Foster Partnerships: Strengthen relationships with other organisations and government agencies. Collaborative efforts can lead to shared resources and insights, enhancing the overall effectiveness of social services.

• Advocate for Flexible Funding Models: Engage with policymakers to advocate for funding models that recognise the complexities of social issues and allow for flexibility in service delivery. This can help ensure that funding mechanisms support innovative and effective interventions.

How Social Care Solutions Can Help

At Social Care Solutions, we understand the challenges that come with adapting to new funding models and the increased emphasis on outcomes. We offer a range of services to support your organisation in navigating this transition:

• Programme Evaluations: Our team can conduct thorough evaluations of your programmes to assess their effectiveness and provide evidence of your impact. We use a variety of methodologies to ensure comprehensive and accurate evaluations.

• Development of Evaluation Metrics: We can assist in the development of tailored evaluation metrics that align with your organisation's goals and the requirements of the social investment approach.

• Programme Design: We can assist in designing new programmes that are innovative and aligned with evidence-based practices. We can also support with developing and evaluating a pilot programme to build evidence for funding applications.

By working with Social Care Solutions, your organisation can be better prepared to meet the demands of the social investment approach, ensuring continued funding and the ability to make a meaningful impact in the lives of those you serve.

For more information on how Social Care Solutions can support your organisation, contact us today via admin@socialcaresolutions.co.nz