Britain’s public services are under severe strain. Demand is increasing, budgets are tight, and support is either fragmented or too often arrives only once problems have escalated. From rising numbers of children entering care to growing pressure on homelessness and health services, those who need help most are too often missing out on the support they need.
Government can deliver large-scale, generalist services well, but complex challenges like homelessness and poor health need joined-up, long-term support that can be tailored to individual needs. Traditional service siloes and ‘pay for input’ contracts limit flexibility, making it hard to personalise services or adapt based on learning.
There is growing recognition across government and stakeholders across the social sector that outcomes-based approaches can deliver better value and better results. That is why Better Society Capital champions Social Outcomes Partnerships (SOPs) as a way to improve public service delivery and shift the system from crisis response to prevention.
Social Outcomes Partnerships & BSC
Under this model, responsive, tailored and outcomes-focused partnerships known as Social Outcomes Partnerships (SOPs) bring together commissioners (typically, local and central government), social investors and delivery organisations. Socially motivated investors provide flexible working capital up front to local charities and social enterprises to deliver services, while also taking on the risk; Government only makes payments for measurable outcomes once they have been achieved by these services and teams.
This approach, developed over a decade ago, has proven its success time and again. Most recently, an independent evaluation by ATQ Consultants found that social outcomes partnerships in the UK have generated nearly £9 of public value for every £1 spent – delivering £507 million in fiscal value for taxpayers through direct savings and costs avoided by the public sector, while making a transformative impact on the lives of individuals and communities.
Since our inception, Better Society Capital has played a key role with partners in developing the UK social outcomes market. Our role has always been about helping the system work better for the people it is meant to serve. We have done this by investing in specialist fund managers working closely with aligned partners across the system, including government and commissioners, and by sharing insights and lessons from across the market.
Partnering with Government: Laying the foundations for the Better Futures Fund
The Better Futures Fund, government’s £500 million commitment to social outcomes, is expected to launch in Spring 2026 and support up to 200,000 vulnerable children, young people and their families by funding early interventions. It is the largest initiative of its kind globally and is designed to act as a central outcomes payer, working alongside local and departmental commissioners - but also foundations and businesses – with the prospect of enabling significant scale over time. At BSC, we were delighted to be part of the Social Impact Investment Advisory Group (SIIAG) that shaped this ambition.
For the Better Futures Fund to succeed, the market needs investment-ready projects, able partnership builders, experienced fund managers, committed investors and strong delivery pipelines. Building on existing experience and deepening capacity ahead of launch will be important to ensure capital can be deployed effectively once the Fund comes on stream.
An example of a SOP Fund: Bridges Outcomes Partnerships’ Better Outcomes Fund V
In 2025, Better Society Capital committed up to £20 million to Bridges’ Better Outcomes Fund V (BOF V), a fund dedicated to SOPs in the UK. It is designed to support social outcomes contracts and partnerships that strengthen public service delivery for individuals facing complex challenges. The fund has been established to support the delivery of outcomes-based programmes at scale, with the potential to support over 100,000 people and enable significant outcomes over its lifetime.
One example supported through investment from a Bridges fund is AllChild, an organisation delivering tailored support for disadvantaged children and young people in schools in West London. Through an outcomes partnership established with four West London boroughs, the programme was able to bring together multiple stakeholders and support channels from across the community around these individuals – improving outcomes across social, emotional and academic areas for more than 2,800 children and young people, as assessed through independently agreed outcome measures.
Better Society Capital’s participation in BOF V has been to support the development of market infrastructure and delivery pipelines that may be relevant to future government-backed outcomes initiatives like the Better Futures Fund.
Looking ahead
Public service reform is complex and there are no quick fixes. Outcomes-based approaches are not a silver bullet, but the evidence shows they can play a valuable role in improving services, preventing problems earlier and delivering better outcomes for individuals at better value for the public purse. Scaling these approaches responsibly requires careful design, experienced and aligned partners, and flexible capital that is willing to work across sectors and over the long term.
At Better Society Capital, we will continue to invest where we see strong potential for impact, support the development of a healthy social outcomes market, and work collaboratively with government, investors and delivery organisations. Through our investments focussed on SOPs, we aim to help strengthen the foundations for the next exciting phase of outcomes-based public service delivery, as government prepares to bring the Better Futures Fund into effect.
Interested in learning more about Social Outcomes Partnerships? Please get in touch.