Better Futures Fund Round 1 Delivery Partner

The Better Futures Fund is a Social Outcomes Partnership fund to address child poverty. DCMS is seeking to select a grant recipient(s) (either a single organisation, with or without delivery partners, or as a joint application) who is able to deliver the objectives of Round 1 of the Better Futures Fund, consisting of £39.8m in funding. This funding can only be used for activity in England.

  • Opening date:
  • Closing date: (Midnight)

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Contents

Summary

  1. The £500 million Better Futures Fund (BFF) will support up to 200,000 children, young people and their families over the next 10 years. It will do this by bringing together government, local communities, charities, social enterprises, investors and philanthropists, to deliver place-based solutions to complex social problems. The funding will primarily be for the commissioning of Social Outcomes Partnerships (SOPs), with government payments tied to the achievement of measurable improvements in people’s lives, such as school attainment, improved youth employment, and reduced youth reoffending. 

  2. The fund will aim to raise up to an additional £500m in match funding for outcomes over the full duration of the programme, working with partners including local government commissioners and philanthropists. It will also bring in additional upfront funding from social investors creating total funding of up to £1 billion.

  3. The BFF will fund projects which support the government’s ambitions to tackle the structural and root causes of poverty for children, young people and their families - projects that reduce the short or longer term impacts of poverty on the life chances and outcomes for children. 

  4. The specific outcomes the fund will look to deliver are currently being determined. The specific metrics will be decided in local places, aligned to local needs, but will be guided by an overarching set of outcomes that align with evidence on tackling child poverty.

  5. DCMS is anticipating a two-stage roll out. For Round 1 (launching in summer 2026) we are seeking a proposal that will support the launch of a small number of locally-based outcomes-focused partnerships that are match-funded by external partners. These social outcomes partnerships will need to involve organisations with a proven track record of SOP delivery. The successful grant recipient(s) for Round 1 will receive just under c.£40 million of funding between summer 2026 to March 2036 to support Social Outcomes Partnership (SOP) provision in priority areas in England only.

  6. Subsequent rounds that will cover the remainder of the BFF’s funding will be from 2027 onwards, designed to significantly scale up the number of SOPs and widen participation across the market. These will be open to all applicants, whether or not they have experience of SOP delivery.

  7. DCMS is seeking to select a grant recipient(s) (either a single organisation, with or without delivery partners, or as a joint application) who is able to deliver the objectives of the Better Futures Fund Round 1. This competition guidance sets out the DCMS’s requirement for delivering Round 1 of the BFF only.

Eligibility

Grant recipient overview

1. DCMS is seeking a grant recipient(s) who can:

  • Demonstrate ability to deliver the objectives and expected outcomes of Round 1 of the BFF and to be strongly aligned with the overarching BFF objectives and outcomes.

  • Demonstrate a strong understanding of the SOP model, including administration, social outcomes partnership project management. 

  • Demonstrate knowledge of measures to alleviate child poverty, and an understanding of “what works” from prior SOP projects and funds.

  • Design and deliver a scheme that meets the Round 1 objectives and outcomes outlined within the set timescales. Encourage engagement and buy-in to BFF Round 1 at the local and national level with the ability to: 

    • Work across diverse areas in England, with the exact places yet to be determined. 

    • Demonstrate strong understanding of and relationships with key stakeholders in the SOPs delivery space, including social investors, delivery organisations and sector experts. Additionally demonstrate an understanding of how these relationships will be built and strengthened to ensure a successful Round 1 competition.

    • Demonstrate understanding of the local VCSE sector to reach a variety of organisations across England - including those who tend to be excluded from this level of partnership working. 

    • Deliver a cohesive and accessible communications plan to encourage applications to Round 1, build necessary sector expertise, share lessons from exemplar Round 1 projects with prospective future BFF projects, and encourage information sharing and networking between prospective Round 1 bidders and among successful Round 1 projects. Foster shared learning and peer support; bringing in existing best practice and expertise at the local level. 

  • Demonstrate a strong understanding of the challenges and risks to successful delivery of Round 1’s objectives and outcomes.

2. The successful grant recipient(s) will be required to: 

  • Demonstrate effective financial management, value for money and quality assurance.

  • Demonstrate they are able to manage a “payment by results” Social Outcome Partnership fund, including monitoring and analysis of outcomes and payments data.

  • Provide regular reporting and monitoring to DCMS on delivery progress and projects outcomes achievement.

  • Support DCMS’ evaluation of the fund in line with BFF objectives. This should involve:

    • cooperating with the independent evaluators appointed by DCMS.

    • receiving and monitoring the feedback and reporting from participating stakeholders in local areas / their beneficiaries.

    • reviewing delivery and adopting lessons learned internally.

Eligibility, Criteria, and Due Diligence 

Please see the competition guidance for information on eligibility, essential criteria and due diligence requirements.

Objectives

BFF Objectives 

1. Over its 10 year lifetime the BFF will deliver the following objectives:

  • Deliver positive outcomes for up to 200,000 children, young people and families living in relative poverty.

  • The fund will aim to raise funding from local government and philanthropists on top of the government’s funding on a 1:1 match basis, whilst also leveraging in millions of upfront funding from social investors to support organisations to deliver. This would create potential funding of up to £1 billion.

  • Grow and diversify the market for SOPs.

  • Develop the evidence base on SOPs and Child Poverty.

2. It is an ambitious programme and a key delivery component of the Government's efforts to tackle Child Poverty. The fund will aim to deliver positive outcomes for individuals, as well as wider benefits for public service reform. 

3. Funding the launch of locally-led SOPs is a key objective of the BFF funding. SOPs of this type have been well supported to date via grant funding that provides ‘top-up’ match funding with local project budgets to pay for locally commissioned outcome based contracts (versus fee for service or output based contracts). Specific outcomes (with metrics) are decided in local places, aligned with local needs, but guided by the overarching set of outcomes that align with evidence on tackling wide-ranging social issues, like child poverty.

4. The BFF will be an equal contributor to outcome payments with the match outcomes payments made by the local commissioner and in some cases philanthropists. The fund aims to provide an incentive for local commissioners to develop SOPs, particularly when savings fall to other parts of the public sector. Pilot central top-up funds, such as the Life Chances Fund, made average contributions of 35% towards local budgets. In BFF the contribution will be an average of 50%.

5. DCMS is seeking to award a grant which the successful applicant(s) will need to align with the BFF’s Objectives. The BFF’s overarching target social outcomes will be communicated in due course.  

Round 1 Objectives and Outcomes

6. The grant recipient(s) should seek to deliver the following objectives for Round 1 of the BFF:

  • Deliver a successful Round 1 application process, programme and programme closure, achieving Round 1 outcomes, set out below.

  • Demonstrate the efficacy of the SOPs mechanism to tackle child poverty to projects who may bid for funding in future rounds of the BFF.

  • Inform DCMS’ policy design and delivery of future rounds of the BFF.

 7. The grant recipient(s) should seek to achieve the following Round 1 outcomes;

  • Deliver measurable positive outcomes for children, young people and families living in relative poverty, for example, by supporting SOP projects which seek to improve outcomes for children, young people and families living in relative poverty.

  • Improve locally led expertise across England in delivering SOPs, for example by;

    • Supporting projects with demonstrable prior experience in delivering a SOP.

    • Targeting support towards projects delivering through the SOP model.

  • Improve the evidence base and wider understanding of what works in delivering a SOP between central and local government, VCSEs and Social Investors, for example by;

    • Capturing evidence on outcomes delivered by projects including for each individual participant.

    • Ensuring that learnings from Round 1 projects are shared transparently and proactively across Round 1 projects and prospective future BFF projects.

    • Ensuring that learnings from Round 1 directly informs DCMS’s design of future rounds of the BFF.

    • Capturing learning and case study material from Round 1 projects.

    • Contributing to the independent evaluation and post event assurance of the BFF including through cleaning data and sharing it with the evaluator.

Dates

Application dates

The timeline below is indicative and subject to change:

  • Competition opens for applications: 30 April 2026

  • Deadline for clarification questions: 08 May 2026

  • Publication of clarification questions: 15 May 2026

  • Deadline of the application: 11:59pm 12 June 2026

  • Application Assessment: 15 June - 26 June 2026

  • Notification of shortlist to interview: 26 June 2026

  • Interviews: 29 June - 10 July 2026

  • Notification of recommendation for approval: 10 July 2026

  • Final confirmation of appointment: 24 July 2026

**Any clarification questions should be directed to betterfutures@dcms.gov.uk.**Work will need to start immediately in July 2026 to support DCMS. We expect the grant agreement will be finalised with the successful applicant(s) in July 2026, although the exact timing will be dependent on a number of factors. Delivery is expected to take place from July 2026 to March 2036, with all spending to be completed within this time period.

How to apply

Please see the competition guidance for detail.

Supporting information

Please see the competition guidance for detail.