& social investment
Teens and Toddlers Social Impact Bond

Education plays a fundamental role in the development of children, young people and adults. This influences the employment opportunities afforded to them in later life.

Despite the universal provision of education in the UK, significant differences remain in the attainment of pupils from more and less advantaged backgrounds. This ‘attainment gap’ exists before a child enters mainstream education and has been shown to increase as pupils progress through the education system. Additionally, there are significant variations in attainment across geographies, genders and ethnic groups. Taken together, this cements social immobility and long-term inequality.

Reducing these variations in attainment remains a key focus for government policy, with specific funding being allocated to provide additional support or expanded provision for students from disadvantaged backgrounds.

This has created potential income streams for charities and social enterprises to draw upon to expand their delivery of interventions aimed at improving outcomes for pupils who are most in need. This may be by:

  • directly providing services to students or into schools
  • delivering government payment-by-results contracts
  • operating cross subsidy models, generating income through commercial sales to fund education interventions

Different types of social investment can be used to support charities and social enterprises and offer opportunities across all levels of education provision, from pre-school to higher education to adult skills development.

Our eductation induction slides provide further information. 


Early Years

Growth capital to expand the provision of early years education in disadvantaged areas and for children from disadvantaged backgrounds
Third Space Learning


Risk capital to fund the development of new social enterprises offering targeting disadvantaged young people in schools
Factory Skatepark social enterprise

Youth Clubs

Asset finance that can be used to generate income to support a charity's work through cross subsidy models

Transition from School

Social Impact Bond to fund targeted interventions to support young people at risk of not entering further education, employment or training when they leave school 

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Our investments in education

Risk capital for social ventures using technology and innovation to support ageing well, educational attainment and sustainable communities.
Social Impact Bond to improve accommodation and work outcomes for a group of young, homeless people with complex circumstances.
Social Impact Bond to help young people improve their educational attainment and reduce youth unemployment.

Future investment ideas

Visit our future investment ideas page to see what new ideas we're working on.

Social Investment Insights

Research | 24 February 2015

This Social Investment Insights paper focuses on how social investment can be used to support education.

Waliur video