Karen Came APM Workcare The First New Zealand Social Bond: Te Tautoko Nga Tangata - Improved Health and Wellbeing through Sustained Employment Karen Came APM Workcare

Introduction to Social Bonds Social Bonds involve private and not-for-profit organisations partnering to fund and deliver services that improve social outcomes. If the service provider achieves agreed results, Government will pay for the contracted outcome and investors will get back their investment plus a return.   Social Bonds are now underway in several countries, as illustrated below (from a 2015 review by the Brookings Institute). 10/11/201810/11/2018

Social Bonds in New Zealand 10/11/201810/11/2018

This Bond: Improved Mental Health Through Employment Target group Job seekers with a Health Condition, Injury, or Disability benefit and with a diagnosed mental health condition in the following Auckland suburbs: Manukau, Manurewa, Clendon, Papakura, Pukekohe and Waiuku. Referral process Work and Income GP office Identified by service provider Self-referral Goal Outcomes Over 1000 entrants to the programme Over 43% success rate of placement (cf 10% with no assistance) Range of employment (full-time, part-time, or ‘other’) Ongoing support leads to sustained employment 10/11/201810/11/2018 Commercial in Confidence 4

Proportion of referrals who enter work and are off benefit Outcomes That Will be Achieved: Improved Mental Health Through Employment International outcome evidence Performance Criteria Evidence based-supported employment consistently outperforms any alternative (Bond et al, 2008; Waghorn et al, 2010) People placed this way: Earn more Keep the job longer Work more hours a week Experience improved health and well-being Receive less benefits and increase taxable earnings Comprising diverse communities Across 4 continents 20 randomised control trials Proportion of referrals who enter work and are off benefit Current (without assistance) 10% Current MSD intervention (Work to Wellness) 30% Baseline expectation for this bond 43% Commercial in Confidence

Bond Structure: Improved Mental Health Through Employment Investors Outcome agreement Special Purpose Vehicle Crown Target Group Monitoring and reporting Capital Payment Investment returns Payment for successful delivery Service Provider Commercial in Confidence

Progress to date Bond approved by government – December 2016 Capital raised: $1.5million – January 2017 Structure: 80% Class A senior debt 20% Class B subordinated debt Target return for investors for a 6 year term: 7% Class A 13% Class B Contracts agreed by all parties – February 2017 Bonds issued – March 2017 Service Delivery commenced – April 2017 Commercial in Confidence

How will we evaluate outcomes? Client data will be collected to measure: Enrolments/referrals Placements/enrolments Sustained outcomes/placements Clients will be assessed at commencement, during and on completion of services to determine quality of life An assessment that has been specifically developed for this programme which incorporates the WHO QoL (Quality of Life) assessment tool Currently seeking an interested party to conduct formal, objective research 10/11/201810/11/2018

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