Triodos Bank and Greater Merseyside Connexions Partnership (GMCP) have won a £4.5m payment-by-results contract to help support young people in Merseyside who may be unemployed or at risk of unemployment.
The cash comes from the Department for Work and Pensions (DWP) Innovation Fund.
The partner organisations are working together to deliver an innovative, three-year programme called “New Horizons” targeted at some of the most vulnerable young people in the Merseyside area. The programme aims to improve educational, training and ultimately employment outcomes for 3,900 young people, many of whom will be young offenders, have learning disabilities, or be in or leaving care.
The programme will use a blend of interventions including one-to-one coaching aimed at improving ‘mental toughness’ and resilience in individuals so that they can self-sustain their own development and progression into suitable employment.
The Innovation Fund is a newly launched DWP initiative aimed at encouraging social service delivery organisations, financial intermediaries and private sector investors to work together to design and finance programmes which can help improve employment outcomes for the most vulnerable young people in society. The DWP acts as main contractor and guarantor of a payment-by-results contract. Unlike typical social service delivery, the funding is provided at risk by private sector social investors, who only achieve a financial return if pre-agreed educational, training and employment outcomes are met.
Triodos Bank’s corporate finance team acted as lead adviser on the deal and in partnership with GMCP raised £2m of funding for the programme in the form of a social impact bond from a syndicate of leading UK social investors, including the Big Society Investment Fund.
GMCP, who are a long-standing social delivery organisation in Merseyside, designed the New Horizons concept and will be in charge of delivering the programme on the ground in partnership with a small group of other local service providers. Triodos will retain a role in the financial management of the three-year scheme on behalf of investors.
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