Finance Nicola Willis has announced a new standalone ‘Social Investment Agency’ following a pre-Budget speech in Hutt Valley.
It will replace the current Social Wellbeing Agency which is part of the Public Service Commission.
The new agency, which will be effective from July 1, has been allocated $50.5 million to support its “expanded functions and role”.
“Despite the Government currently investing more than $70 billion every year into social services, we are not seeing the outcomes we want for all New Zealanders,” Willis said after a speech to the Hutt Valley Chamber of Commerce this morning.
“We can see the lack of appropriate support for our most vulnerable reflected in rises in welfare dependency, declining school attendance and achievement, poorer health outcomes, rising rates of youth and violent crime, rising gang membership, ongoing dependence on statutory services such as Oranga Tamariki and Police, as well as increasing rates of inequality,” Willis said.
“I believe we can, and we must, do better. So we’re taking a different approach.
“As a new standalone central agency effective from 1 July, the Social Investment Agency will lead the development of social investment across Government, helping us understand who we need to invest in, what works for those people and how we measure progress.
“The Social Investment Agency will be tasked with developing the tools needed to deliver social investment programmes and will work with other agencies to apply the social investment approach to existing supports.”
The new agency will be tasked with:
- Setting the standards for social investment practice to ensure there is consistency across government agencies and contracted providers.
- Advising on and facilitating the creation of the necessary data and evidence infrastructure for social investment.
- Working with other agencies to apply the social investment approach.
- Leading an ongoing review of social sector spending to measure outcomes.
Social Investment Fund, Social Investment Board
Willis also announced the establishment of a Social Investment Fund and Social Investment Board to complement the agency.
“[The fund will be] managed by the Social Investment Agency, to directly commission outcomes for vulnerable New Zealanders, and to work with community, non-government-organisations (NGOs) and iwi providers,” she explained. “The fund will begin investing in 2025 but I am announcing it now as it will be a new way for government to invest and will take time to design.
“I am also establishing a Social Investment Board as a ministerial advisory committee to provide external challenge and guidance as we undertake the shift towards social investment, and a group of Social Investment Ministers to work with me on powering up the social investment approach across the system,” Willis said.
The board will be made up of “real-world experts”, she added.