Nick Clegg announces £30m package to help improve the prospects of up to 20,000 vulnerable young people30th April 2014
The Deputy Prime Minister, Nick Clegg, has announced a £30 million investment package, in the form of Social Impact Bonds, to support vulnerable young people in improving their prospects and preventing them from falling into a situation where they are not in education, employment or training (NEET).
The funding will help them to develop crucial skills to improve their educational achievement and employability.
This investment is made up of two new cross-government programmes, which will specifically target 14 to 24-year-olds:
the Youth Engagement Fund aims to support up to 18,000 young people in over 100 schools in England to help them improve their skills and employability
the Fair Chance Fund aims to move over 2,000 homeless young people into sustainable accommodation, as well as employment, education or training over 3 years
Social Impact Bonds (SIBs) are viewed as an innovative way of solving complex social problems. SIBs are a payment by results system, which will see investors fund innovative interventions to prevent young people from becoming NEET, with government only paying if the initiatives are successful and positive outcomes are achieved. Organisations, charities and their investors will bid for a share of the £30 million pot of government funding, giving a boost to the best programmes.
Individuals who invest in accredited social impact bonds will be eligible for the social investment tax relief, announced in this year’s Budget.
The latest statistics show that 10,700 young people have been supported up to the end of October 2013, with over 8000 education and employment outcomes achieved, as a result of the ten SIBs already commissioned by government to support disadvantaged young people.