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Final Evaluation Report Reveals Impact of The Skill Mill Social Impact Bond (SIB): A Transformative Approach to Reducing Youth Reoffending

The Skill Mill, a pioneering social enterprise dedicated to supporting young people with criminal convictions, has released the final evaluation of its four-year Social Impact Bond (SIB) programme. The report highlights significant achievements in reducing reoffending rates and supporting young people into employment while delivering meaningful environmental and community benefits.


Key Findings from the Final Evaluation

The independent evaluation, conducted by Professor Susan Baines, Russell Webster, Professor Chris Fox, and Harry Armitage at Manchester Metropolitan University’s Public Policy and Evaluation Unit, reveals that The Skill Mill’s innovative six-month work programme has:

● Achieved a 91.5% success rate for young people not re-offending during their time on the programme and 6 months following completion.

● Delivered tangible employment, skills and training benefits, with 91.3% of participants gaining a nationally recognised qualification.

● Enabled 100% of the target number of participants to complete the intensive six-month programme, despite significant challenges such as the COVID-19 pandemic.


The Skill Mill has supported 243 young people aged 16-18 across eight locations in England; Birmingham, Croydon, Durham, Leeds, Nottingham, Rochdale/Bury, Surrey, and West Sussex. Participants undertook paid work in environmental services, gaining practical skills, qualifications, and life skills that have empowered them to move towards crime-free lives.

Innovative Funding Model

The programme was financed through a Social Impact Bond, also known as a Social Outcomes Contract, supported by the government’s Life Chances Fund. This unique tripartite funding model required contributions from Youth Offending Services paying only for outcomes achieved, matched with payments for outcomes from the Life Chances Fund, and revenue generated by Skill Mill through commissioned work. Over the four years, The Skill Mill successfully generated 99.9% of the target revenue from outcomes payments and 83% of the ambitious total revenue target, an impressive outcome for a social justice intervention in the UK with over £35 million of costs avoided to the taxpayer. However, the programme also faced significant challenges, including the impact of COVID-19 and the complexities of operating a Social Impact Bond. These hurdles ultimately resulted in The Skill Mill covering a shortfall of approximately £181,000 from its reserves, underscoring the financial and operational pressures faced by social enterprises.


Transformational Impact on Young People

The report demonstrates the profound impact of The Skill Mill on young people participating, highlighting their increased self-confidence, improved work readiness, and ability to break the cycle of offending. Testimonials from young people reflect the programme’s value:


“Before I got this job, I was in a bad routine… now I can see changes in myself. I’m waking up earlier, and I’m really happy with that.”
“Skill Mill gives you a confidence boost. Six months ago, I wouldn’t have had the confidence to sit here and talk about my experiences.”
"Getting out of the house and being active is so much more motivating. Its great being paid and I really want to get a qualification. The CSCS card is really important for job possibilities’
" I feel like I’ve really grown out of getting into trouble” I’ve stopped getting involved with all that bother. I’ll come home and I’m tired and I’ll just go on my Xbox and go to bed early enough to get up in the morning. It’s got me into a work routine and made me much more motivated and productive, it’s really built my confidence and I feel much more confident about my next move’
Demonstrating the Power of Partnership

The success of the Skill Mill programme highlights the importance of partnerships between a social enterprise, central government, local authorities, the corporate sector, and social investors. By combining resources, expertise, and funding, these collaborations have unlocked significant social innovation and impact. The Life Chances Fund provided critical match funding, while social investors enabled upfront capital to launch and sustain the programme. Corporate partners contributed through commissioned work, helping young people gain real-world experience and practical skills. This partnership model highlights the potential of social investment to drive systemic change and improve outcomes for vulnerable communities.


Andy Peaden, Director of The Skill Mill, said: “This evaluation reaffirms the transformational impact of the Skill Mill programme. By providing real work opportunities, qualifications, and support, we’ve helped hundreds of young people rewrite their futures. We’re proud of what we’ve achieved and committed to building on this success to reach even more young people in need.”
Chris Fox, Professor of Evaluation and Policy Analysis at Manchester Metropolitan University, said: “Over the course of our evaluation the evaluation team has seen how The Skill Mill model demonstrates the power of combining work experience, mentorship, and a supportive environment to achieve meaningful outcomes. It’s a great example of how social enterprises can deliver real change, even in the face of adversity, and how a social outcomes contract, while not without complexity, can help turn a good idea into reality.”

Critical Recommendations for Future Success:

The final evaluation outlines three key recommendations to enhance the ongoing work of Skill Mill and similar programmes:

1. Introduce Aftercare Services: Develop robust post-programme support to help more young people transition into employment or further training.

2. Expand Sales Opportunities: Strengthen the central team to secure more commissioned work and ensure financial sustainability.

3. Leverage Data for Advocacy: Partner with the Ministry of Justice’s Justice Data Lab to access authoritative reoffending metrics, which can support future funding and programme expansion.


The full evaluation report can be read here.

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