Share

Tomorrow's People offers to pilot new social impact bond

Baroness Debbie Stedman-Scott, CEO, Tomorrow's People
News

Tomorrow's People offers to pilot new social impact bond

Finance | Tania Mason | 17 Jun 2011

An independent analysis of the economic value delivered by welfare-to-work charity Tomorrow’s People has estimated that for every pound spent by the charity, at least £2.40 worth of value is created for society.

The figure was arrived at by calculating the welfare benefits saved, the additional tax receipts created, and the estimated reductions in government expenditure on health and criminal justice services for all the people that the charity helped to find sustainable work over the last five years.

The charity’s chief executive Baroness Debbie Stedman-Scott said the pioneering project surely demonstrated to government that “we must be prime candidates to launch a new social impact bond”.

Launched today at the Bank of England, the report by FTI Consulting analysed the work of Tomorrow’s People’s two main employment programmes, Welfare to Work and Working It Out, from 2007 to 2011. It built on an earlier study by Oxford Economic Forecasting in 2004, which at the time suggested that the charity’s return on investment was 1.6:1. The latest findings suggest that the value of the charity’s work has increased during the economic downturn, and FTI emphasised that its new calculations are conservative – if various assumptions are relaxed, the value of the charity’s work rises to as much as £7.10 for every £1 invested.

FTI Consulting was introduced to the project by Pro Bono Economics, the charity founded in 2009 by New Philanthropy Capital chief executive Martin Brookes. Pro-Bono Economics matches volunteer economists with charities that want help to assess their impact.

Setting the pace

Speaking at the report launch this morning, Stedman-Scott said the analysis done by FTI would “set the pace” for impact measurement in the welfare-to-work sector. “This is what other organisations in our sector and others, are going to want to do,” she said.

She said Tomorrow’s People would now share the findings with the world, promote them to prospective investors and use them when tendering for contracts. “We hope it will encourage others to invest in us so we can scale up our business and make a bigger difference.”

Stedman-Scott admitted the project was a “stretching exercise” for the charity, and had highlighted the importance of gathering comprehensive data about service users.

"We accept completely the issues around data collection and the need for the sector to do it in a consistent way so that consistent judgements can be made.” But the robustness of the project meant the charity should now be an obvious choice to trial a new social impact bond, she said.

“We will be talking to government about this because we will need investors and we will need a commissioner, but my worry is that with the current fiscal position there is no more spare money around to do it.

“You must understand my anger that we are actually shutting down programmes because we have not been successful in the Work Programme, when we are overwhelmed by the need for our services. For every place on one of our programmes there are four people who want it.”

Sector equivalent of the G8 Summit

She told the Treasury representative in attendance to “go back to the Treasury and convince Mr Osborne to see us”.

“We need the equivalent of a G8 Summit, a social finance summit,” she told him. “I want to make sure that we, and I’m not just talking about Tomorrow’s People, but all those in our sector that deliver consistently, get a seat at the table.”

Click here to read about Baroness Stedman-Scott’s vision for a “social FTSE”.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Colin Lloyd, founding chair of FRSB, to step down after nine years

20 Apr 2015

Colin Lloyd, chair of the FRSB, will step down in June after three terms in the role, beginning at the...

£1m raised for charities by carrier bag charge in Scotland

20 Apr 2015

More than £1m has been raised for charities from the carrier bag charge since it was introduced six months...

Study finds that men donate more to charity when the fundraiser is an attractive female

17 Apr 2015

Men donate more to online fundraising pages where the fundraiser is an attractive female, and donate competitively...

Tory vice-chair attacks charitable housing association for paying its chief executive £420,000

21 Apr 2015

The Conservative Party’s vice-chair has urged the Charity Commission to take action against the Anchor...

National Gallery staff strike again over privatisation of services

21 Apr 2015

About 22 per cent of staff at the National Gallery are striking this week over the privatisation of 400...

Four Unicef staff killed in attack by al-Shabaab militants in Somalia

21 Apr 2015

Four Unicef staff members were killed and a further five were wounded yesterday when the vehicle they...

Oxfam trials tap-to-donate technology

17 Apr 2015

Oxfam GB is running a trial of near-field communication technology to allow supporters to both donate...

Ice Bucket Challenge effect brings down average online donation amount

15 Apr 2015

The average online donation fell by 8.6 per cent in 2014 to £63.69, according to a survey by fundraising...

Education charity UCAS broke electronic marketing rules, says Information Commissioner

9 Apr 2015

The Universities and Colleges Admissions Service broke electronic marketing rules because its admission...

Join the discussion

 Twitter button

@CSFinance