Decision details

14.1

The Executive Director, Children, Young People and Families submitted a report setting out how the Futureshapers project would work and recommending that, should the bid prove successful, the City Council adopts the role of local contributor and, as such, makes an invest to save financial contribution of £455, 254 for each year of the three year project (April 2015 to March 2018 inclusive) from youth budgets, making a total contribution of £1,365,762

14.2

RESOLVED: That Cabinet:-

(a)

endorses Sheffield City Council as the local contributor of the Futureshapers programme;

(b)

resolves that the Executive Director, Children, Young People and Families and the Executive Director, Resources agree the appropriate financial profile and payment mechanism to allow the council to makes an invest to save financial contribution of £455, 254 for each year of the three year project (April 2015 to March 2018 inclusive) from youth budgets, making a total contribution of £1,365,762;

(c)

delegates authority to the Executive Director, Children, Young People and Family Services in consultation with  the Executive Director, Resources and the Director of Legal and Governance to take all such necessary steps to ensure that SCC’s contribution is legally safeguarded including placing a charge on the ring-fenced bank account and negotiating and entering into a Memorandum of Understanding with Futureshapers and that the outcomes are properly and appropriately assessed prior to the outcomes payments being made; and

(d)

delegates authority to the Executive Director, Children, Young People and Family Services be authorised to recommend, in liason with the Cabinet Member for Children, Young People and Family Services, a suitable candidate to assist the Board of Futureshapers properly to manage public funds and services.

14.3

Reasons for Decision

14.3.1

The Futureshapers project will, if the bid is successful, make a significant contribution towards the achievement of SCC’s strategic outcomes for vulnerable and disadvantaged young people.  It will help over 1300 young people make a successful progression from school into the world of further education, training and employment, as well as building their resilience and confidence.

14.3.2

The Futureshapers project will, by bringing in new funding of over £3m initial investment from social investors and  over £4m from DWP for outcome payments, deliver considerable added value to the 25% investment the council makes for the payment of outcomes.  For the councils’ investment, 100% of the return will be achieved in delivery and overall outcomes payments.  This represents a high value use of council investment.

14.3.3

The successful delivery of the Futureshapers programme would result in lower demand for more intensive interventions with young people who are NEET.  This will enable the City Council to make further year on year savings over the next three years against targeted youth support budgets, in anticipation of further public sector savings, whilst maintaining an effective system of support for young people progressing from school into adulthood.

14.3.4

Futureshapers allows SCC to test the Social Impact Bond financial model, build a relationship with a network of potential social investors, and position Sheffield as a council and a city that can deliver significant improvement in outcomes using external investment in its services. As such, it is intended that this new investment model will allow SCC to build a sustainable funding model for targeted youth support at a time when the resources available to the council continue to diminish and it will provide the evidence base for continuing dialogue with government as to new risk and reward arrangements through which youth services can be made sustainable.

14.4

Alternatives Considered and Rejected

14.4.1

Sheffield City Council (SCC) is not eligible to submit a bid to the YEF, which is primarily aimed at charitable and private organisations acting as the contractor and delivery agent. 

14.4.2

SCC has not been approached by other bidders to the YEF, but is supporting this submission in partnership with Sheffield Futures, the city’s leading youth charity.

14.4.3

SCC could decline to act as the local commissioner to the bid, but to do so would be to deny the city the potential to access to £3m of external funding for targeted youth support. This would be inconsistent with its strategy of negotiating deals with government designed to secure sustainable financial arrangements that are capable of delivering better outcomes.

14.4.4

SCC has discussed with DWP the technical arrangements for the payment of the contribution to outcome payments, and has proposed alternative arrangements that give more financial oversight to the release of outcome payments.  DWP has made it clear that it is not in a position to change the financial rules set out in the programme prospectus, and that any change to the financial arrangements would invalidate the Sheffield bid.

14.5

Any Interest Declared or Dispensation Granted

None

14.6

Reason for Exemption if Public/Press Excluded During Consideration

None

14.7

Respective Director Responsible for Implementation

Jayne Ludlam, Executive Director, Children, Young People and Families

14.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Children, Young People and Family Support