Each time Beam supports someone into a job or home (an "outcome"), this generates cashable savings for various government departments including the Department for Work & Pensions, HMRC and local councils.
The overall cashable savings we generate are an aggregate of four types of outcomes listed in the table below, with allowances made for people living within and outside of London.
Saving per outcome
Assumptions & sources
We helped an individual at risk of homelessness, long-term unemployed and/or with low income into a stable job
The typical time that this cohort spends out of work is 12 months. By comparison, it takes only 3 months for people to find a job with Beam's support. This reduces their time spent out of work by 9 months, generating taxpayer savings of £1,738 per month from Council Tax and related sources. Therefore the saving per outcome is £15,644. For people outside of London there is a 10% reduction in this amount. Currently 92% of Beam's job seekers are within London.
We helped a household move out of temporary accomodation and into their own accomodation
London households typically spend 23 months in temporary accommodation (6 months out of London). Beam reduces the amount of time people spend in temporary accommodation by an average of 9.5 months in London. Helping someone into stable housing generates taxpayer savings of £1,277 per month from Universal Credit, other welfare benefits and Council spending on Temporary Accommodation. Therefore the saving per outcome is £12,134.
For people outside of London there is a 25% reduction in this amount.
We prevented a household at risk of homelessness from having to move out of their accommodation
London households typically spend 23 months in temporary accommodation (6 months out of London). Using Beam to get into a private rented tenancy at this stage avoids the use of temporary accommodation altogether. Helping someone into stable housing generates taxpayer savings of £1,277 per month from Universal Credit, other welfare benefits and Council spending on Temporary Accommodation. Therefore the saving per outcome is £29,378.
For people outside of London there is a 25% reduction in this amount
There are other ways in which Beam generates taxpayer savings. For example, we support people who are homeless or at risk of homelessness and who have either poor mental health, issues with substance misuse or are at risk of reoffending and going to prison. This represents savings for the NHS, Mental Health Services, Substance Misuse Services and Reoffending Provisions if they work with Beam. There are also additional Council Tax savings for anyone for who had a job at the time of working with Beam and moved into private rented sector accommodation through Beam.
We are currently seeking independent, expert verification of our cashable savings calculations and assumptions in order to improve the accuracy of our model. If you have any feedback or questions on our savings model, we welcome your feedback at [email protected].