MP calls for £200m fund
A £200 million fund to support children from deprived backgrounds should be created using private investment, an MP has recommended.
In report commissioned by the government, Graham Allen, Labour MP for Nottingham North, said an early intervention fund could initially raise £27 million to pay for pilot schemes in 27 areas.
The projects would help children develop social and emotional skills and prepare them for school.
Social housing providers and other groups such as the police would act as guarantors on a portion of backers’ investment. Such guarantees would reduce the cost of capital, the report said.
The study, published last week, said central government and local bodies would pay into the fund once targets for delivery services had been achieved by the programmes. Councils and financial institutions should come up with locally based financing ideas including a collective bond issue, it added.
Mr Allen said a task group on early intervention - to be made up of representatives from government departments, the Cabinet Office, the Treasury, organisations providing services for young people and financial organisations - should report to the social justice cabinet committee of MPs to coordinate work on the subject.