Key fund invests in social impact bond to tackle youth homelessness
KEY Fund has invested £150k into a new
Social Impact Bond to help tackle youth homelessness across the North West.
The investment will enable regional charity Local Solutions to engage in a
pay by results contract. Local Solutions has delivered innovative and life
changing services to vulnerable people in North West England and North Wales
The charity has a strong portfolio of accommodation services. It also runs Domestic Abuse Services, Domiciliary Care, Welfare Rights Advice, BullyBusters, Carers Support and a Water sports centre. In 2014, they were awarded the Freedom of the City of Liverpool in recognition of its outstanding contribution to the City.
Key Fund's investment has allowed Local Solutions to enter a pay-by-results contract with the Cabinet Office and Department for Communities and Local Government's £15 million Fair Chance Fund.
This fund has allowed Local Solutions in collaboration with Oakmere Community College to launch their new initiative called AIMS (accommodation, intense mentoring and skills).
The AIMS programme will provide support services for vulnerable, homeless young people aged between 18 to 24 in Liverpool and Knowsley who are not in education, training or employment and who have had difficulties in getting a hostel place. AIMS can be accessed via the local accommodation gateway, Mainstay, and or via the local Housing Options services.
The Fair Chance Fund programme began at the start of the year and will help up to 2,000 homeless young people over 3 years. Government will track progress and pay social investors if the programmes succeed in rehousing the young people, bringing them back into education to gain qualifications, or getting them to work or volunteer.
Sam Tarff, CEO of Key Fund, said:- "This is part of a real shift in the way some of our public services are paid for with the government only paying when outcomes are achieved, encouraging Social Investors such as the Key Fund to provide the initial up-front risk investment to allow charities and Social Enterprises to get on with their fantastic work. This transfer of risk allows for more innovation, driving a focus on really making an impact on beneficiaries."
Steve Hawkins, CEO at Local Solutions, said:- "We are delighted to have been selected as one of the providers for the innovative Fair Chance Fund and welcome this important new resource that will provide support to those young people who might otherwise be left out. We look forward to strengthening established links with Liverpool and Knowsley Councils through the delivery of our new exciting AIMS programme."
Julie Mousley-Dean, Principal and CEO of Oakmere Community College, said:- "Local Solutions and Oakmere Community College have a very strong record of helping vulnerable young people to make the most of their potential. The new AIMS programme will enable us to reach out and support even more young people for an even longer period of time."
The deal was brokered by the not for profit organisation Social Finance, which works with government, the social sector and the financial community. Jonathan Flory, Director at Social Finance said:- "The Fair Chance Fund is an excellent opportunity for homeless charities to break free of the traditional constraints and provide individual and tailored support for young people who lead complex and difficult lives."
With the announcement of the Fair Chance Fund Social Impact Bonds, there are currently 23 Social Impact Bonds in operation in the UK, with more to be announced in the coming days.