Update on COVID-19 and the Aspire SIB
Aspire Social Impact Bond
Investor update, 30 March 2020
Above: Hutt St Centre staff and program participants gardening.
Dear investor,
The outbreak of coronavirus (COVID-19) is a rapidly evolving situation that Australia and the rest of the world is having to adapt and adjust to. COVID-19 risks putting more strain on a system already struggling to help everyone in need. The challenge is that life continues and it is now, more than ever, that the most vulnerable people in our communities need support to navigate the uncertain situation.
We are working with the Aspire SIB Joint Working Group on how best to support people as the situation unfolds. Hutt St Centre continues to provide support to people experiencing homelessness in Adelaide through the Aspire Program. Like all social service providers, they are having to deal with many challenges including adapting the way services are delivered to ensure the safety of staff and participants. This investor update outlines how the Aspire Program is responding to COVID-19, and the potential impact on the Aspire SIB.
COVID-19 Impact
Hutt St Centre has put in place multiple strategies for the Aspire Program in response to COVID-19. These include:
- Restrictions on client transport and home visits, which now require sign-off by a team leader.
- Aspire Navigators reducing face-to-face interactions with participants, and instead providing support using phone, email, text and video conferencing.
- Encouraging staff and participants to implement protective hygiene measures and to maintain social distancing practices.
- A rotating staff roster with half the team working on-site and half working from home each week to reduce the risk of the virus to spread throughout the team.
Hutt St Centre do not believe the virus will impact their ability to source new referrals or to access housing under the Housing First model. COVID-19 is likely to have a greater impact on non-Aspire services, such as providing day-to-day amenities and meals which are now being restricted to rough sleepers and are being provided as take-away meals only.
There is the potential for COVID-19 to impact on the Intervention Group’s utilisation of government services and, in turn, the measures used to calculate outcome payments under the Aspire SIB. This is because there may be an increase in hospital admissions for participants diagnosed with COVID-19, and an increase in emergency accommodation support as people who are rough sleeping are being accommodated in hotels and motels during the crisis.
The Joint Working Group is working through the implications of COVID-19 on outcomes measurement. The group will determine whether amendments are required to ensure utilisation of services for COVID-19 related reasons, does not unduly impact on outcome payments made to the Aspire SIB Trust or investor returns.
Counterfactual Review update
As outlined in the 2019 Annual Report, the Joint Working Group of the Aspire SIB has commenced a review of the counterfactual service utilisation rates (the assumed service utilisation rates of the Aspire participants in the absence of Aspire Program). We will provide an update on the outcome of this review in the coming months.
These are unprecedented circumstances and the situation is evolving rapidly. We will provide you with further updates as new information becomes available in the coming weeks and months.
Please feel free to contact us at aspiresib@socialventures.com.au if you have any further questions.
Elyse, Casey and Patrick
Impact Investing, Social Ventures Australia
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