ThinkForward’s cost benefit analysis explored the financial implications of outcomes achieved by young people supported by ThinkForward. Data was taken from ThinkForward’s London school and a cost benefit model developed by New Economy Manchester was applied. The study took a very conservative approach to assessing potential savings, for example only treating young people who had previously had two or more exclusions from school as being at risk of permanent exclusion in future.
The evaluation concluded that for every £1 spent there would be a resulting cost savings of £2.48. The biggest future savings are through the following average per participant savings over the course of their working lives:
• £768 to schools/local authorities due to young people being less likely to be permanently excluded
• £544 to Department for Work and Pensions through reduction in Jobseekers Allowance
• £410 to criminal justice system through reduction in crime-related costs due to lower likelihood of young people being involved with criminal activity
This evaluation was undertaken by an Executive Masters of Public Administration candidate in Global Public Policy and Management offered jointly by UCL in London and NYU in New York as their Capstone project. This was supervised by an expert in Cost Benefit Analysis at NYU.