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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Contact Details
Jill McGrath Questions YMCA Perth & District 5 Charlotte Street Perth PH1 5LW 9