Tomorrow's People evaluated the benefits of their services for disadvantaged young people across the country
Tomorrow's People works with those facing multiple barriers to employment and equips them with the skills and confidence they need to get and keep a job. The believed they needed to undertake an evaluation of their services for disadvantaged young people across the country.
Pro Bono Economics (PBE) matched Tomorrow’s People with experienced economists from the Bank of England. PBE provided expert oversight of the project to demonstrate that the value of Tomorrow's People's services has increased over time.
Cost-benefit analysis conducted by the Bank of England economists shows that their programmes demonstrate a benefit of £342 for every £100 spent from 2007 - 2011 and £415 for every £100 spent from 2011 - 2014. This is achieved through higher tax revenues; reduced benefits payments and the potential to reduce public spending on health and criminal justice services.
The total value to society over the 7 years consists of benefits saved £22.2 million, increased tax receipts £15.7 million and reduced spending on health and crime £24.9 million. The FTI Consulting report describes these as conservative estimates, which may underestimate the true economic impact of Tomorrow’s People employment programmes.
Mark Carney, Governor of the Bank of England:
"The work of Tomorrow’s People is vitally important. At an individual level, it helps young people realise their potential and avoid becoming ever-more-distant from the labour market. At a societal level, it helps to break the vicious cycle between high unemployment and high levels of crime and poor health. And at an economic level, it delivers tangible economic benefits, as demonstrated in the report.
The work of Tomorrow’s People is so valuable to young people and to wider society, and I am delighted that Bank of England economists have given their personal time and expertise to help demonstrate the effectiveness of this impressive charity.”
Martin Brookes, Chief Executive of Tomorrow’s People and PBE co-founder said:
“The report measures the impact of what Tomorrow’s People achieves in a way that is meaningful to our partners. Since the charity was founded in 1984 it has consistently opened itself up to external scrutiny. This latest report confirms that our work with young people has a major, positive impact on individuals, society and the economy, both through recession and during an improving economy. Our culture of analysis enables us to review our performance and maximise the effectiveness of our work.”
Julia Grant, Chief Executive of Pro Bono Economics, who has extensive knowledge of supporting charities and social enterprises in the youth employment space, said:
“Recent research has highlighted the human cost of young people who spend too long trying to find work without the right support to guide them into a useful job. Tomorrow’s People champions the real potential of these young people and I am delighted that with the support of our skilled volunteers at the Bank we have been able to provide hard evidence to highlight the enduring value of their work.”