UK: Social enterprise saves public money

A partnership between a housing association and a social enterprise providing building services is saving the UK the Treasury and the wider economy over £500,000 a year in tax and National Insurance payments, concludes an independent report. LHA (Leicester Housing Association) and Newlife have been working in partnership since 2000 with the aim of improving incomes, life chances and employment prospects in local communities through training and job creation. The independent report carried out by the PEP consultancy, looked at the ‘social return on investment’ of the partnership contract measured over one year. It found that by equipping job-seekers with new skills in construction by working on live LHA housing projects, and getting them into paid work where they could contribute to the economy as tax-payers, the partnership saved the public purse £512,000 last year in social security and housing benefits. The report said: “The benefits of the partnership between LHA and Newlife can clearly be seen. Instead of being a cost on society, employees cease to claim the same level of benefits and start paying taxes. The financial benefit is not to Newlife but to the Treasury and the wider economy?if they start to spend it locally, the local economy starts to grow as opposed to decline.” It also found that “Newlife is effective at recruiting in areas of severe disadvantage where alternative employment and training opportunities are very limited.” The report also suggested that the partnership was yielding other social benefits such as raised self-esteem, better health and family relationships. Leicester-based Newlife works in construction and physical regeneration, seeking to ensure that its work also offers opportunities for local people and local businesses to benefit. Activities include work with schools and colleges, training and employment, and a commitment to local procurement. Its aims include the training of previously unemployed people to develop as construction workers, the constructing new buildings, refurbishing older ones, re-let repairs and delivering modernisation as part of the Decent Homes programme. www.lha.org.uk