5/28/2026 10:42:45 AM | 3 minute read

Better Futures Fund - deadline 12 June 2026

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Emma Watt

Senior Associate

Get in touch

Emma Watt

Senior Associate

Social enterprises, charities, and organisations working in the 'Impact Economy' should take note of the Better Futures Fund (BFF) Round 1 opportunity, which is currently open and closes at 11:59 pm on 12 June 2026.

Designed as a flagship outcomes-based funding programme, the BFF represents one of the UK Government’s most significant investments in tackling child poverty and improving life outcomes through innovative delivery models. Over its ten-year term, the BFF aims to raise funding from local government and philanthropists on top of the Government’s funding on a 1:1 match basis, creating a potential fund worth up to £1 billion.

The successful grant recipients for Round 1 will receive just under c.£40 million of funding between summer 2026 and March 2036 to support Social Outcomes Partnerships (SOP) provision in priority areas in England only.

Social Outcomes Partnerships

Unlike traditional grants, this is an outcomes-based commissioning model, requiring robust measurement, delivery capability, and partnership structures. Contracts require private funding from a third party, such as a social investor, to cover the upfront capital required for a provider to set up and deliver a service. The commissioning authority identifies outcomes they would like to change, e.g. homelessness, youth unemployment and long-term health issues. The service provider receives payments from investors based on the delivery required to achieve the specified outcomes. The social investor is repaid by the commissioner over time only if these outcomes are achieved.

SOPs can bring several benefits to public service delivery, including:

fostering broad stakeholder partnerships and collaboration that brings together a range of knowledge and expertise;
enabling new interventions or programmes to be tried and greater flexibility in the delivery of interventions;
enabling a focus on prevention and early intervention, which improves individual outcomes; and
the ability to access upfront funding enables local providers who have a clear understanding of social issues and target populations to deliver these services.

The Social Outcome Partnerships team (previously the Centre for Social Impact Bonds) delivered the Life Chances Fund (LCF) between 2016 and 2025, a £70 million outcomes fund delivering 29 projects across England. The team has also produced reports summarising, evaluating and evidencing the success of SOPs such as the Kirklees Better Outcomes Partnership.

Better Futures Funds - application stages

The Department for Culture, Media and Sport (DCMS) is seeking to select a grant recipient(s) (either a single organisation, with or without delivery partners, or as a joint application) who can deliver the objectives of the Better Futures Fund Round 1. Bidders will need to complete and submit the formal application form along with required supporting evidence to demonstrate they:

have a strong history of multi-stakeholder collaboration (e.g. local authorities, investors, charities) and working in SOPs;
have the delivery capability and can work at pace, ideally with ‘ready-to-go’ projects capable of rapid mobilisation;
can evidence of secured or credible match funding and demonstrate an ability to manage outcomes-based payment risk (with strong financial modelling over a ten-year term);
have clear, measurable outcomes aligned with tackling child poverty and disadvantage and defined metrics with credible evaluation methodology.

Round 1 is worth approximately £39.8 million over the period 2026-2036 and will be awarded to a single or a small number of delivery partner contracts rather than many small grants. Applicants should expect large-scale, consortium-based bids, rather than individual project grants.

Provided applicants make it through the first assessment stage by scoring two out of four marks against the ‘essential criteria’, they will be subjected to due diligence checks and invited to a clarification interview. DCMS will share priority questions for those invited to interview ahead of the interview. Scores will be finalised by a moderated panel based on application and interview responses to form a final score. The grant will be awarded to the organisation with the highest score. DCMS will aim to notify the successful applicant on 10 July 2026 (subject to change).

Preparing for submission and arrangements post-award

The Better Futures Fund represents a transformational funding opportunity for experienced, partnership-led social-purpose organisations. However, its scale, complexity, and outcomes-based structure demand a high level of commercial, financial, and legal expertise. With the deadline of 12 June 2026 fast approaching, organisations should prioritise:

strong consortium formation;
clear, measurable outcomes;
robust financial modelling;
early engagement with legal and commercial advisors.

Those that combine impact credibility with delivery readiness and sound governance will be best placed to secure funding in this highly competitive round. Once awarded, stakeholders will need to move quickly to ensure the right governance frameworks and risk-sharing agreements are in place.

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 with SOP delivery.

For more information and support, please get in touch.

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.

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