There are nearly 1 million unemployed young people in the UK today. Young people who have been excluded from school or who have not achieved adequate GCSEs are more likely to not make the transition into work, training or further education than those who have not. Additionally, experiencing unemployment immediately after leaving statutory education is linked to a greater likelihood of becoming unemployed in later life and poorer health outcomes.
3SC Capitalise is a Social Impact Bond seeking to address two of the root causes of poor education attainment: poor literacy and low self-efficacy. The three year programme, in partnership with Dyslexia Action and Catch 22 charities, has worked with 720 young people aged between 14 and 16 years old in secondary schools in South Wales and identified as being at risk of not transitioning into work, training or further education.
Impact data, including improvements in attitude, attendance and behaviour as well as qualifications gained, is collected on a weekly basis by the project lead and communicated to the board on a monthly basis or periodically depending on the expected outcomes profile.
Investment into this SIB provides the risk and working capital for the programme to be delivered by the charities Dyslexia Action and Include, a subsidiary of Catch22. Repayment are made under a “payment-by-results” contract with the Department of Work and Pensions (DWP), funded out of long-term savings to the public purse of the reduced cost of youth unemployment. Social investors take on all of the financial risk, providing the required up-front funding in the knowledge that their returns will only be made if the intervention delivers improved outcomes for the young people at risk of not transitioning into work, training or further education.
The DWP’s Innovation Fund was launched in 2012 to support payment-by-results programmes that enable disadvantaged young people to participate and succeed in education and training. 3SC Capitalise is one of the 10 SIBs funded through in this programme. Big Society Capital’s investment into this SIB will help 3SC Capitalise prove its model of combined literacy and cognitive interventions.