YMCA Perth and District Jill McGrath Chief Executive YMCA Perth and District

Delivery via Social Impact Bond Outcomes-based contract in which public sector commissioners commit to pay for significant improvement in social outcomes for a defined population Private investment is used to pay for interventions Financial returns are made on the basis of improved social outcomes which are paid for by public bodies Defined population in the case of Living Balance are those 300 young people who are at risk of not moving into positive destinations on leaving school or at post 16 are not in education, employment or training. A group of 10 investor support the payment of interventions which are delivered by YMCA in Perth. 2

Delivery Structure for Living Balance Department for Work and Pensions Investors Intermediary Perth YMCA This represents the key organisations involved in the Living Balance project. DWP funded the Living Balance Project through Round one of their Innovation Fund Programme. Contract awarded in Feb 2012. Indigo is the organisation that I represent which is the contract holder and intermediary. Overall management of the contract Manage outcome claims to DWP Monitor project delivery and achievement of outcomes Resolution of performance issues Provide support to develop new social enterprises Manage investor relationships Ensure DWP obligations are being met Review and implement best practice Develop exit strategies Investors are a group of organisations that have provided funding for the project YMCA Perth work directly with young people mentoring, support, delivering qualifications and managing relationships with local partners that allows the Living Balance project to be delivered on a day to day basis. Local Partners 3

How Does Living Balance Work? A portfolio of investors have been created and they have jointly invested in Living Balance As each outcome is achieved e.g. improved attendance at school, qualification achieved etc. Intermediary claims a payment from DWP These payments will ensure continued delivery At the end of the programme, investors will be paid back their initial investment and interest (subject to outcomes being achieved) End of 2011/2012 a portfolio of 10 investors provided this for the YMCA Perth model. Each time YMCA Perth support a young person into sustained employment, help them achieve a qualification or support a young person to increase their attendance or behaviour Indigo claims a payment on behalf of the project to DWP. This is usually paid within 30 days based on the presentation of agreed evidence. These usually monthly payments ensure continued delivery of the programme. The outcomes of attendance etc 4

Living Balance Overview Long Term support Individual approach focussing on each young persons abilities, challenges and aspirations through 1:1 and group work From 1 hour per week to full time hours Development Awards – up to £250 Work placement opportunities & Employment Qualifications Continuity of support

300 young people aged 14-24yrs Referral Organisations Schools Jobcentre Plus Skills Development Scotland Social Work Drug & Alcohol Team Youth Justice Youth Services Homeless Units Mental Health Team Self Referral

What have our young people achieved? (18 Months) 117 Level 1/ SCQF 4 Qualification 64 Level 2/ SCQF 5 Qualification 6 Level 3/ SCQF 6 Qualification 49 Supported into work (approx 63/65 %) 46 Still in employment 18 Improved attendance at school 30 Improved behaviour at school

Key Benefits & Risks Stability Flexibility Longer term support Intermediary support Investment in social enterprises Partnership Investors get a return and achieve social good DWP obligations must be met Ensuring relevant information for claims for outcomes Outcome achievement - impacts on cashflow & investments Obligation to achieve outcomes based on innovation Wider environment Stability for YMCA to know that subject to gaining outcomes they have funding for 3 years. Not easy to get this through grants which are yearly and its labour intensive to maintain. The programme is flexible. It’s up to the delivery partner to decide what to deliver to gain outcomes. The length of the programme means that YMCA can deliver support over a much longer period of time rather than being constrained by annual funding contracts. The intermediary is on hand to support YMCA with any performance issues and compliance Allows for the development of long term partnerships with investors and employers at local level. When outcomes are met investor gain a return on their investment and the knowledge that they have achieved social good with their investment DWP obligations must be met and only claims supported by the correct supporting evidence can be claimed. DWP only pays out when outcomes are achieved and evidenced provided. Consequently there is a direct relationship between outcomes and cashflow and also return on investment for investors. The programme needs to offer innovative solutions Changes in government policies can impact on the programme – overlap with other welfare to work programmes Changes in the economy. Less jobs around there may be fewer placements for our young people or local job opportunities 8

Contact Details Jill McGrath Questions YMCA Perth & District 5 Charlotte Street Perth PH1 5LW jill@ymcaperth.com 01738 630 121 9