Youth Engagement Fund

Description

On 30 April 2014 a package of measures to help address youth unemployment and homelessness were announced. These included a new Youth Engagement Fund of over £16m over three years to tackle the attainment gap and reduce the number of young people who become NEET (not in education, employment or training) using social impact bonds (SIBs). The new Youth Engagement Fund will build on the existing DWP Innovation Fund to bring together evidence of effective practice alongside external social investment to fund innovative preventative interventions that will improve outcomes for young people. The Fund will test the extent to which a payment by results approach involving social investors can drive improved outcomes for young people. It will also engage local stakeholders through local financial contributions to projects; support the development of the social investment market by building the capacity of social enterprises and charities; and contribute to the evidence base for the increased use of social impact bonds. The Youth Engagement Fund will pay for positive education and employment outcomes achieved by projects that support disadvantaged young people between the ages of 14 and 17 across areas of England, excluding those geographical areas covered by the Round 2 Innovation Fund Contracts. Vulnerable young people are a diverse group with a variety of different needs. A range of factors are associated with a greater risk of becoming NEET, including low attainment, truancy, exclusion, teenage parenthood and having a learning difficulty and/or disability. It is expected that Youth Engagement Fund bids will focus on the most disadvantaged young people rather than those who spend a short time NEET whilst in transition between other activities. Youth Engagement Fund proposals were sought from Social Investment Partnerships comprising one or more Investor, one or more Delivery Body and one or more Local Contributor. In some cases, an Intermediary may also be involved. Youth Engagement Fund proposals demonstrate engagement with local stakeholders and three of the four contracts awarded include a financial contribution from at least one other source. The Fund will pay the Investors or Intermediaries solely on basis of outcomes achieved. The Delivery Bodies will receive funding from the Investors or Intermediaries to cover their full delivery costs so they do not have to take the outcome risk. Four Youth Engagement Fund Contracts were awarded on 4th February 2015.