New youth work funding method to be trialled

The National Youth Agency, working in partnership with law firm Bates Wells Braithwaite (BWB) Impact and Sheffield City Council, has been awarded a total of £90,000 to pilot a social impact bond to provide neighbourhood outreach youth work for young people.

The initiative will support 11- to 14-year-olds to fulfil their potential and avoid behaviour that could put them at risk.

Social impact bonds are a payment-by-results system whereby initial investors are paid returns if certain social outcomes, such as reducing reoffending or gaining employment, are achieved.

The funding has been awarded through the Big Lottery Fund’s Commissioning Better Outcomes development fund.

Jon Boagey, deputy chief executive of the NYA, said youth work is needed now more than ever because of huge pressures on local authority budgets and services for young people.

“We’re determined to find new ways to fund youth work at a neighbourhood level,” he said.

“Our social impact bond aims to bring much needed long-term investment into youth work.  We want to create stable funding for delivery organisations, help public services to reduce costs and provide a return for social investors.”

Jim Clifford, partner and director of BWB Impact, added: "This is a really exciting project that has potential to offer a genuinely innovative youth work service on terms that make it attractive for local commissioners.

“It comes at a time when we see provision for vulnerable young people coming under threat across the country, and I believe that this has potential far beyond Sheffield."

The announcement follows the successful completion of a ThinkForward social impact bond, which was developed to tackle youth unemployment through £900,000 in capital.