Social enterprises which improve the quality of health and social care for local communities can now apply for loans and grants from the Department of Health’s Social Enterprise Investment Fund, Care Services Minister Phil Hope announced today.
The Fund has helped more than 150 social enterprises by investing over £20 million since it was first launched in 2007. There is more than £70 million available for start-up and existing social enterprises over the next three years.
Social enterprises can apply for a range of financial help including loans, grants and equity-like investment products, along with tailored business support services that can be provided by the fund.
The fund is being managed by Futurebuilders England and Partnerships UK on behalf of the Department of Health. The two organisations will work closely with the Department of Health’s Social Enterprise Unit to support and assess applications to the fund.
For media enquiries only please contact the Department of Health newsdesk on 020 7210 5221.
For more information about Futurebuilders England, please contact Shaheena Sachedina or Peter Gilheany on 020 7403 2230 or at shaheena@forster.co.uk / peter@forster.co.uk.
For more information about Partnerships UK, please contact Elaine France on 020 7273 8056 or at elaine.france@partnershipsuk.org.uk.
Following the 2007 Comprehensive Spending Review, the Department of Health committed £100m of funding for the Social Enterprise Investment Fund until March 2011.
The Social Enterprise Investment Fund is managed on behalf of the Department of Health by Futurebuilders England Ltd, working in partnership with Partnerships UK.
The Fund is open to applications from new and existing social enterprises in England:
- Existing social enterprises looking to expand into health and social care.
- New social enterprises that want to provide services in health and social care.
- Groups of health and/or social care professionals (eg nurses, therapists), seeking to form a social enterprise to deliver their services.
The Fund will offer a range of financial solutions including loans, grants and innovative equity investment products, alongside tailored business support services.
Futurebuilders England is the largest social investor in the UK. Its aim is to substantially improve the financial and strategic capability of the Third Sector so that it can play an ever greater role in improving the lives of the people and communities it serves. For more information visit www.futurebuilders-england.org.uk.
Partnerships UK (PUK) has a unique public sector mission: to support and accelerate the delivery of infrastructure renewal, high quality public services and the efficient use of public assets through better and stronger partnerships between the public, third and private sectors.
PUK is working with around 20 Primary Care Trusts to provide assistance in separating provider and commissioner functions and support the implementation of new enterprise forms including social enterprise. For more information visit www.pukpublicservices.org.uk.
Social enterprises are businesses with primarily social objectives whose surpluses are principally reinvested in the business or community, rather than being driven by the need to maximise profit for shareholders and owners. There are a number of different forms of social enterprise such as community interest companies (CIC), charities, community benefit societies and co-operatives.
What is the Department of Health Social Enterprise Investment Fund (SEIF)?
The Social Enterprise Fund is a fund set up by the Department of Health to invest in and support social enterprises in the health and social care sectors. It helps new social enterprises start up and existing social enterprises grow and improve their services.
Why did the Department of Health set it up?
The Social Enterprise Investment Fund was set up in 2007 as part of the Government’s plans for stimulating expansion in the role of social enterprise in the provision of health and social care (outlined in the White Paper, Our health, our care, our say, 2006).
By enabling social enterprises to deliver health and social care services, the Social Enterprise Investment Fund aims to improve the quality of services for patients.
Social enterprises involve patients and staff in designing the services they provide and so they can often provide more innovative and responsive services that are better tailored to meet patients’ needs.
(In addition to the Fund, the Social Enterprise Unit at the Department of Health launched the Social Enterprise Pathfinder Programme in 2007, which is supporting 26 social enterprises to deliver health and social care services with total funding of £9m over two years.)
How much money is in the fund?
The Fund was set up with £100 million over a four year period. There is over £70 million remaining.
Who decides who gets the money?
An investment panel of experts from the Department of Health’s Social Enterprise Unit, Futurebuilders England and Partnerships UK will support and assess applications to the Fund.
How will the Fund help social enterprises?
The Fund will offer a range of financial solutions including loans, grants and innovative equity investment products, alongside tailored business support services. Not only will it be providing these organisations with money but also with advice and tools to help them succeed.
What kind of applications is the Social Enterprise Investment Fund looking for?
The Social Enterprise Investment Fund is looking for applications from new or existing social enterprises that are passionate about providing innovative health and social care services. It will encourage new ideas and better ways of delivering services. Essentially, it’s about improving the quality of services for patients. Using a broader range of organisations to provide more responsive services means a better deal for patients.
What is the role of Futurebuilders England?
Futurebuilders England will manage the Fund on behalf of the Department of Health.
What is the role of Partnerships UK?
PUK will be providing specialist support to NHS staff using the Right to Request, as individuals, groups of services or whole PCT Provider Arms, as well as GPs or other Allied Health Professionals (AHPs) to start-up as social enterprises, and who are seeking funding from the Social Enterprise Investment Fund.
Who managed the Fund before?
The Fund was previously managed by Community Health Partnerships.
Why was there a change in the management of the Fund?
The arrangement with the incumbent was an interim solution while the legislative and financial framework was put in place. It was always the intention to invite tenders at the appropriate time so the department could engage with the emerging social investment market.
How is the success of the Social Enterprise Investment Fund measured?
The contractual arrangements include key performance indicators that will be measured.
The Department of Health will be commissioning a two-year evaluation of the SEIF, starting this year to provide evidence based learning to further develop the role of social enterprise in delivering services in health and social care.
How many social enterprises has the Fund helped so far?
The fund has invested in more than 200 social enterprises since 2007.
Why does the Government want social enterprises to get involved in the delivery of health and social care?
By enabling social enterprises to deliver health and social care services, the Social Enterprise Investment Fund aims to improve the quality of services for patients. Social enterprises involve patients and staff in designing the services they provide and so they can often provide more innovative and responsive services that are better tailored to meet patients’ needs.
How can social enterprises deliver health and social care?
Social enterprises are uniquely placed to involve patients, service-users and staff in designing the services they deliver, improving quality, and tailoring services to meet patients' needs. Because of this they often have a better understanding of what specific groups and communities need.
The Social Enterprise Investment Fund has already provides investment to a number of social enterprises. For example, a community-investment company, Disability Stockport, received funding to help provide a disability resource centre; the Uggerthorpe Healthy Living Centre in Sheffield received funding to expand the gym and create an exercise space; the Bristol Clubhouse received funding to help provide employment and training opportunities for people with severe and enduring mental health problems.
What organisations can apply?
The Fund is open to applications from new and existing social enterprises in England:
Existing social enterprises looking to expand into health and social care.
New social enterprises that want to provide services in health and social care.
Groups of health and/or social care professionals (eg nurses, therapists), seeking to form a social enterprise to deliver their services.
What’s a social enterprise?
Social enterprises are organisations that are run along business lines, but where any profits are reinvested into the community or into innovative service developments. There are a number of different forms of social enterprise such as community interest companies (CIC), charities, community benefit societies and co-operatives.
How does an organisation apply?
The application process for the Social Enterprise Investment Fund is quick, easy and straightforward.
If an organisation is interested in applying to the Social Enterprise Investment Fund, all they need to do is visit www.dh.gov.uk/seif or call 0191 269 2276. One of the investment team will discuss your organisation’s needs with you and talk you through the next steps.
How long does the process take?
The whole process will take up to six weeks.
Who decides if an application is successful?
Futurebuilders and Partnerships UK will work closely with the Department of Health’s Social Enterprise Unit, and an independent investment panel, to support and assess applications to the Fund.
What do organisations get if they are successful in their application?
The Fund will provide appropriate financial support, including loans, grants and innovative equity investment products, along with business support services. Both the financial and business support is specifically tailored to meet the needs of social enterprises that are delivering or aiming to deliver healthcare and social care services.
Who are Futurebuilders?
Futurebuilders England is the largest social investor in the UK. Their aim is to substantially improve the financial and strategic capability of the Third Sector so that it can play an ever greater role in improving the lives of the people and communities it serves.
Who are Partnerships UK?
Partnerships UK (PUK) has a unique public sector mission: to support and accelerate the delivery of infrastructure renewal, high quality public services and the efficient use of public assets through better and stronger partnerships between the public , third and private sectors.
PUK is working with around 20 Primary Care Trusts to provide assistance in separating provider and commissioner functions and support the implementation of new enterprise forms including social enterprise.
For more information visit www.pukpublicservices.org.uk.
Charity Bank and Triodos raised some concerns about the sustainability of Futurebuilders administering SEIF in the long-term. Are these concerns valid?
Sustainability is the essence of what Futurebuilders are all about – helping organisations to be far more sustainable longer-term, reducing their reliance on grant income.
Accountability is very important and Futurebuilders is always very clear about publishing where the money goes to.
Isn't the right to request too much of a burden for NHS frontline staff?
No - The Right to Request will be driven by local need and where frontline staff see the opportunity to improve local services. It is recognised that social enterprise might not always be the right solution and a quality assurance framework will be put in place within the PCTs to assess this. PCTs will also have a role in supporting the development of these social enterprises, and in addition business support provision will be put in place to support those staff that do decide to exercise the right to request.
Isn't the promotion of social enterprise just another way of bringing in privatisation through the back door?
No, absolutely not. Social enterprises share the same public sector ethos as the NHS; they re-invest surpluses into services and the community. They are run on business principles, in order to improve quality and efficiency.
In addition to improving services, social enterprises can contribute to the wider regeneration of communities. Public money spent commissioning social enterprise contractors often achieves social benefits beyond the service directly procured.
Is this another cost-cutting exercise at the expense of services and patients?
Absolutely not. Social enterprises and the third sector in general are important contributors to the commissioning and provision of high quality responsive services. We want to ensure that social enterprises are in a position to add value to current services and that commissioners, through a range of providers, offer choice and quality to patients, as well as value for money.