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
since 1974.
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.
