The COVID-19 pandemic has made it even more important that countries pay more attention to the issue of helping vulnerable individuals and in particular addressing homelessness. The pandemic has made it harder for some people to find or keep their homes, it has left people with more debt and increased the risks of eviction and homelessness.

Many countries are looking for new financing solutions to help resolve the temporary accommodation problem.

Social Outcomes Contracting is an innovative financing mechanism and social services procurement method that is responding to old and new social challenges. It is based on outcome rather than output. It provides the option of combining public and private resources to support social projects.

The service provider’s compensation is linked to a measurable social impact rather than to the completion of a set of tasks.

To help countries develop outcome-based approaches, the Advisory Hub hosts The Advisory Platform for Social Outcomes Contracting. Launched in 2019, the SOC Advisory Platform supports the use of Social Outcomes Contracting to resolve social issues and inspire innovation.

In July 2020, the Advisory Hub agreed to help Madrid implement innovative financing and procurement tools to help tackle the homelessness problem in Spain’s capital.

Bank experts, mobilised by the Hub, will provide Madrid with a comprehensive feasibility study on the launch of a Social Impact Bond. These bonds provide innovative financing that helps vulnerable groups become self-sufficient, enabling them to leave their temporary accommodation more quickly–freeing up space for others in need. As the procurement of service providers will be carried out via Social Outcomes Contracting, Madrid is only required to pay for the services if the results are achieved.

Thanks to the advisory services provided by the SOC Advisory Platform, Madrid can create real change for people in need.