2022-08-31-accounts

Shaw Trust Annual Report and Accounts 2022 shaw trust

Contents

Message from our Chair 4 Message from our CEO 5 Our mission 6 Our behaviours and values 8 Child to career 12 Shaw Trust delivers across the UK 14 Homes2Inspire 16 Shaw Education Trust 20 Children and Young People’s Services 24 Optimus Education 28 Learning and Skills 32 Employability 36 Health and Wellbeing 40 Justice 44 Ixion Innovation 48 Our commitment to our colleagues 50 Shaw Trust people 52 Volunteering at Shaw Trust 58 The Shaw Trust Foundation 64 Shaw Trust Disability Power 100 66 Disability Advocacy 70

Our environmental impact 74 Our awards 76 UN Sustainable Development Goals 80 Trustees Report and Strategic report 83 Future Strategy 83 Operational Review 84 Financial Review 90 Principal Risks & Uncertainties 96 Legal Structure & Governance 98 Statement of Trustees Responsibilities 100 Independent Auditors Report 102 Financial Statements 106 Group Statement of Financial Activities 106 Balance Sheet 107 Group Statement of Cash Flow 109 Notes to the Financial Statements 112 Statutory & Admin details of the Charity 159 Accreditations 160

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Message from our Chair

Similarly, our Foundation has begun to incubate fledgling charities with the innovative energy to be at the forefront of the next generation of social change.

I am often asked what sets us apart from other welfare service providers of our size. My answer starts with a Board and CEO who totally embrace our purpose – improving the lives of people comes before profit. We walk this talk at every Board meeting where we begin with a discussion between Trustees and someone whom we have helped, often supported by a volunteer or a Shaw colleague.

As I step down as Chair, I look back on a decade during which Shaw has materially grown our social good and financial outcomes. If asked what I am most proud of from my time at the helm, my answer is seeing the reaction of we Trustees at those starter Board sessions, such as the:

Shaw Trust welcomes this endorsement of our long-held mantra that we have a business head and a charitable heart.

Our purpose is to improve the life chances for employment for people who face social and economic challenges or who may also be disabled or have complex needs.

• young residents from a home for children;

• confident shop manager whom we had rescued from the brink after his self-esteem had been bullied out of him at work;

Leafing through this Annual Impact Report you will encounter numerous examples of how we delivered for hundreds of thousands of people in our country.

• proud face of our support manager who had found a flat and employment for the decorated ex-serviceman whose redundancy had led to a failed attempt to deal drugs in order to make enough money to keep his home.

I hope that the following pages will convince you that Shaw Trust can teach others a thing or two about ‘purpose’.

Our approach to our employees, volunteers, commissioners, and partners is designed to deliver the best possible outcomes for the third of a million people whom we supported last year. But our impact went much wider. For example, to nationwide acclaim, we published the 8th Disability Powerlist 100 highlighting the accomplishments of people with physical or neurological impairments.

As we dab away the tears and open the Board papers (while contemplating “there for the grace of God go I”) no one is left in any doubt about Shaw Trust’s purpose.

Sir Ken Olisa Chair of Trustees

Message from our CEO

I know our Shaw Trust people are key to ensuring our participants get the support they need. In the last year we have endeavoured to support, grow, and develop our colleagues though internal programmes developing leadership skills, CEO Executive Shadow Board and opportunities for involvement in cost-of-living conversations – all alongside our nominated staff representative group. I remain proud of the commitment that our people show to our mission.

Underpinning all our work is an unwavering commitment to social value: we are driven to delivering more. Our Foundation has invested our financial surplus to deliver more impact – incubating selected small to medium enterprises (SMEs) that align with Shaw Trust’s mission and ensuring our policy and advocacy work gives us influence at the highest level of government while delivering on-the-ground services. To this end, we are one of four proud sponsors of SEUK’s Social Value 2032 project, and this year also saw another hugely successful Disability Power 100 awards. We will grow this impact and social value even further in 2022-2023.

A year ago, we were coming to terms with the impact of Covid 19. Today, the UK’s social and economic context continues to increase the disadvantages of vulnerable groups in society - food poverty, fuel poverty, and reduced relative incomes. As we hit the milestone of 40 years in operation, Shaw Trust’s mission is more vital than ever before.

Against this backdrop, Shaw Trust has been working tirelessly to support more than 330,000 people in 2021 – 22.

Finally, it would be remiss not to mention that after nine years of supporting Shaw Trust, Sir Kenneth Olisa OBE, has completed his maximum term as Chair. We are so grateful for his support and wise counsel.

We work hard to help people of all ages, from childhood to retirement, by delivering a diverse range of public services focused on care, education, work, and wellbeing. And our homes for children; our education learning and skills programmes; employability services; support for young people in the justice system; and health and mental wellbeing support – are all designed to meet the needs of local areas. We are proud that in the last year we have started developing long term strategic partnerships in areas such as Somerset’s Homes and Horizons, offering integrated child to career support though a 10year partnership.

In the next year, we will continue to take bold steps to ensure the needs of the people we support are met, making our vital contribution to a future where rewarding employment is accessible for all. I am honoured to lead Shaw Trust on this journey.

Chris Luck CB MBE MA MPhil CCMI FRSA Group Chief Executive

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Our mission

We will work with commissioners, employers, and other partners to co-create and deliver high quality employability programmes and complementary services for people with complex needs, challenging life circumstances or other barriers that impact on access to work.

Our vision

A future where good employment is accessible to all in society irrespective of life circumstances.

Our purpose

We exist to help people facing disadvantage enjoy the best chance in life, to find a way into fulfilling work and to build a strong sense of personal wellbeing.

Our commitment

To focus our experience, skills, advocacy, and passion to deliver the highest quality services for the people we support and to improve opportunities and access to work now and for the long term.

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Our behaviours and values

We believe that who we are and the values we hold directly improves the quality of our support. Our values guide and focus us every day.

We care about people: We support our staff, our volunteers and the people we work with to realise their potential.

“If it hadn’t been for the health and wellbeing service and the process that enabled my manager to reach out on my behalf, I, and my unborn child, may not have received the care and the attention that we needed to bring about such a positive outcome. In fact, I can honestly say we may not have even been here to tell this story.”

We make a difference: Making a lasting positive impact for the people we support is the reason we exist. We deliver high performance across our services, helping people to improve their lives.

“The Restart scheme at Shaw Trust has been an absolute godsend for me. The Restart scheme has built my self-confidence to the point that I now feel I can apply for jobs I wouldn’t have thought were within my reach.”

“The service has saved my life. Nine months ago, I had made several attempts on my own life. I came to Shaw Trust Live Well Kent & Medway, you listened, and I felt heard for the first time in a very long time, I had disassociated from the world, from my children and grandchildren and I didn’t want to live, I really did not want to live. But you, and I don’t know how you have done it, have given me my life back.”

We are inclusive: We value the ideas, views and strengths of everyone we work with and support. Everybody is different and everybody is equal.

“The LGBTQ+ network podcasts have made me feel so proud that I work at Shaw Trust. That colleagues feel safe to share their personal stories and how their life experiences have impacted on them.”

“I am a member of the Women’s Network and a member of the Race Equality Network here at Shaw Trust. I feel proud to work for an organisation that encourages me to bring myself to work and be my true authentic self. I’m able to educate others on my culture and heritage and learn from others about their culture and

heritage. The environment is solutions focussed and enabling, and the colleague networks are a safe place to discuss ideas or talk about concerns. I’m proud to be a woman of colour within Shaw Trust where the environment is inclusive and very enabling.”

“I’m part of the Neurodiversity Peer Support Group and I’m autistic. I feel proud to work for Shaw Trust and I feel comfortable to be 100% me, I have never felt able to do that anywhere before. That helps me to succeed and progress in my role because I’m not putting on a mask and am able to just focus on my role, my strengths, and the benefits of being autistic.”

We are collaborative: Working together is more effective and efficient. We believe that by working together with those we support and our partners we create better services and solutions.

“Our experience of Shaw Trust is they are clearly both a ‘listening’ and ‘doing’ organisation. We have developed a close and innovative partnership over the last year, to support our most vulnerable children in our care with complex needs. Shaw Trust has brought their expertise and resource to bear to develop innovative new homes and fostering services. They have taken the time to understand our needs and listen to our young people; the resulting provision is ground breaking. If you want to form true partnerships centred on the needs of children we would whole heartedly recommend working with the Shaw Trust Charity.” Daniel Moncrieff, Somerset County Council

We are honest: We are authentic, accountable and transparent in all we do.

“You have all clearly done a lot of work in getting the pay award sorted out, as well as the Cost of Living Award. The explanations were honest, and it really is appreciated. The help will allow us to sleep a little more easily now.”

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We’re proud to have supported 335,000 people during the year.

3,000+ Staff

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External accreditations

24,944 Kent mental health crisis phone calls answered

64,539 Unemployed people supported 3 Major awards

80,000+ School staff supported in their professional development

35 Ofsted registered Children’s Homes

120+ Disability Employment Charter signatories 4 Policy Diversity Interns

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Child Career

Child to career

Education, Learning and Skills Employment, Health and Wellbeing Children and Young People’s Services Shaw Education Trust

Careers IAG Apprenticeships Traineeships Justice

We help people by delivering a range of public services focused on care, education, work, and wellbeing.

SEND Primary Secondary

Health and wellbeing Health related employment support Mainstream employment support Self-employment support

Children’s Homes Fostering Risk of NEET IAG Supported living

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25 30

35 40 45 50+

0 5 10 15

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Yorkshire and the Humber8

North West1

South East5

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Shaw Trust delivers
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Shaw Education Trust Learning and Skills Justice Retail and Social Enterprise

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West Midlands2

Children’s services Learning and Skills Employability Justice Homes2Inspire Health and Wellbeing Shaw Education Trust Retail and Social Enterprise

Wales3 Children’s services Retail and Social Enterprise South West4 Children’s services Learning and Skills Justice Homes2Inspire Retail and Social Enterprise

Learning and Skills Children’s services Employability Learning and Skills Justice Homes2Inspire Homes2Inspire Retail and Social Enterprise Health and Wellbeing North East9 Retail and Social Enterprise Learning and Skills London6 Retail and Social Enterprise Children’s services East Midlands10 Learning and Skills Children’s services Employability Learning and Skills Justice Employability Health and Wellbeing Justice Retail and Social Enterprise Homes2Inspire East of En7 gland Shaw Education Trust Children’s services Retail and Social Enterprise Learning and Skills Scotland11 Employability Retail and Social Enterprise Justice Homes2Inspire Health and Wellbeing

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Homes2Inspire

Homes2Inspire works with some of the country’s most difficult to place children and young people with extremely complex behaviour, multiple needs, adverse childhood experiences and trauma, high levels of high-risk behaviour, suicide, self-harm, child exploitation, child criminal exploitation.

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Many of the children we support have been excluded from education and have had multiple placements (in some cases 30+), they may also be subject to Deprivation of Liberty Orders. All of them need our specialist care.

Homes2Inspire:

• 267 children and young people looked after.

• 35 Ofsted registered Children’s Homes looking after 129 children.

• One Independent Fostering Agency (FosteringtoInspire) graded ‘Good’ by Ofsted.

• Two large Leaving Care Services (flats) one of which has a CQC registered Well-Being Suite.

• A Strategic Partnership with Somerset Council to develop up to 10 registered Children’s Homes, 20 High Needs Foster Placements and a Therapeutic Education School.

Our community says:

“I used to be the top in the county for running away and now I don’t at all.” Resident

“I’m looking forward to being able to care for the elderly with respect and dignity, like staff have cared for me.”

Resident

• “We have to praise staff, they have kept her safe and continued to care for her despite her challenges, they have never given up on her, and many others would.”

Parent

• “They are supporting [child] to make progression that we didn’t think was possible. So many providers do not take this approach to risk and it’s refreshing to see.”

Social worker

“The progress made by children is truly phenomenal.” Staff member

About our Young People

• Between September 2021-July 2022, 165 young people lived in our homes.

• We have a total of 113 beds in our homes.

• 53% of our young people are male and 47% female.

• 24% of our young people come from an ethnic minority background.

• 38% of our young people have Education Health and Care Plans (EHC Plans).

• 50% of our young people attend a mainstream school.

• 45% of our post-16s have part-time jobs.

• 153 of our children and young people are in education or training.

Jamie and his brother were known to social care from 2006 because of domestic abuse concerns and poor home conditions. They were placed in their grandmother’s care when Jamie was 14.

However, Jamie’s relationship with his grandmother gradually broke down as he struggled to live within his grandmother’s boundaries. He came to live with us in 2018.

Jamie had ups and downs – ricocheting between periods of exceptional engagement, followed by long periods of becoming isolated and rejecting support from our team.

We persevered, helping Jamie build his confidence through sport. Sadly, Jamie lost his grandmother in 2020 and was profoundly affected, but he channelled his grief into raising more that £1,500 for dementia research by completing a sponsored run.

Jamie always aspired to join the Navy as soon as he turned 16 – but his application was declined. After being refused an appeal, Shaw Trust staff challenged this ruling and their support – and a statement from Jamie to support his appeal – saw him being admitted and he started his training in July.

Jamie has developed into a mature and positive role model for our other young people and an inspiration to others.

‘’I honestly can’t say how thankful I am to you and all the staff. I’m so happy to have achieved my dream after such a difficult start. Thank you, especially for just listening to me talk – it means a lot. I get to just be normal.” Jamie 2022

Homes and Horizons

Focussing on the needs of the children and young people who require our in-depth help and support this partnership will enable Shaw Trust and Somerset Council (SC) to:

• Take a long-term, joined-up approach to transforming the county’s children’s services with a service designed for the needs of the most vulnerable and high need children.

• Create a new way for the public and civil society to work together.

• Create additional social value in the county by reinvesting contract profits into innovative new services.

It will deliver:

• Ten residential children’s homes.

• 20 high needs fostering places.

• Therapeutic education.

The approach includes an innovation fund enabling Shaw Trust Foundation to work with SC and young people in Somerset to develop new approaches and pilot services to make young people’s transitions into adulthood easier.

The work to develop this strategic partnership with SC is a huge achievement and is a blueprint for innovative, collaborative, place-based and longitudinal work for the future. But it is also vital to remember what it will mean for the children and young people it supports:

“The visit to the furniture manufacturer only reinforced my belief in the philosophy and work of Homes2Inspire as being both pioneering and outstanding. The value they show their young people can been seen in both the relationships of staff and young people and the quality of homes they have. This is what changes a Children’s home into a home for children.”

Damien Erangey, Somerset Council

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Shaw Education Trust

Shaw Education Trust is a multi-academy trust sponsored by Shaw Trust. Founded to improve employment outcomes for disabled children it has grown and now operates 29 primary, secondary and specialist schools across 10 local authority areas.

It remains true to its founding principle ensuring individual’s opportunities are not limited by their background, or by their ability.

11,000+ students

29 Academies

45+ extra-curricular clubs

2,500 staff hours of support for schools provided by the customer services team 100%

of schools retained or improved their Ofsted grade

100%

of schools received judgements in line with SET’s internal evaluation 100% of our Directive Academy Order schools received ‘Good’ at next inspection 100%

residential specialist schools are good or outstanding

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Ofsted say:

“Staff undertake a range of courses provided by the Shaw Education Trust. Staff appreciate the investment that has been made in their development. As a result of this investment, staff have strong subject knowledge.”

“Leaders, academy councillors and trustees work well together. They take account of staff’s workload and the well-being of staff and pupils.”

“Senior leaders, including trustees and governors, lead this school very well. They are determined to ensure that pupils are provided with a lifeenhancing education.”

Our principals’ and teachers’ say:

“I take with me so much inspiration from being part of the Shaw Education Trust community and family. I am really grateful for you believing in our school all those years ago and supporting us all in our incredible journey.”

“As Headteacher, having colleagues who know our school inside out, but also care for our school community is invaluable. As a staff we became invincible. I am very thankful that I am part of such a wonderful trust.”

“I will be forever grateful for the support and opportunities I have been given which have allowed me to progress in my career. I have been at my school for 10 years, and the school is undoubtedly in the best place it has been during that time, since being taken over by Shaw Education Trust.”

Our Institute of Education: Key training statistics and our workforce development programmes

Our Institute of Education (IoE) is a key strand of our organisation and leads on our school improvement, talent management and CPD. The IoE has an excellent reputation for providing superb quality support through our vast network of highly experienced and successful system leaders. We have provided high quality, national awards, externally verified and certified training to teachers and leaders:

National Professional Qualifications: 352

142 Early Career Frameworks (ECTs and ECMs):

The Trust has a fully developed apprenticeship programme at all levels supporting 108 apprentices.

Our retention rate for apprenticeships is well above national at 84% .

Our talent management for teaching staff starts with the ITE programme and we have an Outstanding SCITT within SET (Keele and North Staffordshire Teacher Education).

46 subject and thematic hubs for teachers and leaders

71 professional advocates providing support and expertise across Shaw Education Trust

Last summer, he fronted a campaign – the Active Summer Challenge - for the Youth Sport Trust, even learning some British Sign Language to make it inclusive for all. He said: “Helping other people reach their goals and really changing a child’s life, not just physically but mentally, with the power of sport is massive. I’ve gained selfmanagement and a lot of confidence which has helped me with my Tourette’s Syndrome and ADHD to stay levelled with everyone around me and stay focused on my challenge ahead.”

Billy Ellerington wins the Beckwith CARE Young Changemaker Award

With an early diagnosis of ADHD, Tourette’s and associated learning difficulties, Billy found he faced many challenges growing up, including a permanent exclusion from mainstream secondary. He found himself in a specialist setting which in his own words 'changed his life' after discovering the power of sport. Billy has used his own experiences to educate and inspire others. He has delivered training for senior school leaders, coached and led sports/fitness sessions for students and recorded a podcast with Professor Barry Carpenter.

35 in-house training programmes for teaching assistants, teachers, aspiring leaders, middle and senior leaders.

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Children and Young People’s Services

Shaw Trust Children and Young People’s Services delivers services for those aged 5 years to 24, focusing on those aged 11 to 18.

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Our work covers careers guidance and wrap-around support in schools and with those not in education, employment or training (NEET), management information, supported internships, youth work, youth justice, coaching, self-employment and enterprise, and employability. In 2021/22, we worked with 98,000 children and young people.

Z left sixth form following issues with her peers, including a physical fight. This led to anxiety, low self-esteem, feeling alone, and not wanting to leave her bedroom. We supported her with:

• Seven specialist mentoring sessions using Cognitive Behavioural Therapy (CBT) approaches – to deal with her negative feelings and low mood, boosting her confidence and outlook of the world.

• Regular weekly mentoring sessions to work on her confidence, motivation, preparing her to find a part time job and apply for education.

• Completing the Money Wellbeing course, employability days and master classes.

Z has boosted her self-esteem, confidence, and self-belief and is now doing A levels that support her with her future career goals. She was very lonely when I first met her but now has friends and has become much more sociable.

“For the past few months my life has somewhat spiralled out of control to a point where I felt like I was thinking of ways I could leave this planet. Thankfully after seeing me in this state my father started going everywhere, so he could find me someone who could help me. I began attending CBT and this really challenged and changed my way of thought. One other thing my mentor taught me is that I am one in a million and I should act in this way. Before this programme, I had a weak mindset which led me to making poor decisions. I am proud of how far I’ve come and all my achievements. My mentor really understood me, and I was able to express all of my concerns to her big or little. To say CBT saved my mental health would be an understatement; it also lifted me up from a hole I’ve been digging myself for years. I am very grateful for the opportunity and hope that these new skills I have picked up will stay with me for a lifetime.” Young Person Z

Our Children and Young People’s Services work with an evaluation partner, University of Northampton, to independently evaluate the impact of our work including our resilience mentoring, cognitive behavioural coaching and health and wellbeing interventions.

Above and beyond

The Gloucester team created Healthy Holidays to address the food poverty families accessing their services were experiencing during school holidays. This includes:

• Delivering a weekly family breakfast pack.

• A healthy one pot recipe card with all the ingredients for the families to make two hot meals.

• On-site activities (like circus skills, and dance) and cooking a healthy meal together.

Since October 2020 the team have provided 27,000 meals to those in need.

Our clients say:

“I would like to thank you for how you have supported us through our family journey. You have spent time nurturing our daughter back from being hardly able to leave the house and suffering terrible anxiety to being able to enjoy a relatively normal life.”

A parent

“My adviser has been fantastic and found me a job at an estate agency as a business administrator. He helped me build my confidence and I am so grateful.”

Young person

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Optimus Education

Optimus Education is one of the UK’s leading providers of inspiring school improvement services.

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Our impact

95% of schools undertaking the Wellbeing Award for Schools agreed it helped reduce mental health stigma.

The percentage of young people unsure about their future dropped from 48% to 20% after participating in an Optimus Education Skills event.

Our customers say:

“The Optimus team are friendly and professional and went out of their way to ensure the best possible outcomes. We can’t recommend Optimus Education highly enough and we hope to continue our partnership with them over the years to come.”

Co-Founder, Chameleon Personal Development Education

“Optimus Education gives us the peace of mind that comes with knowing our safeguarding compliance procedures are sound and up to date. Optimus Education is among a select group of truly indispensable education resources.” ACS International Schools

“The Leading Parent Partnership Award directly impacted pupil achievement at GCSE level and improved outcomes significantly. This improvement has been most evident for disadvantaged and SEND students.” Vice Principal, Saint Peter and Paul Catholic High School

Our Optimus Education colleagues say:

“I love supporting the many schools working with us. Working on our awards gives me a great insight into all the good things that they do.” Denise Thomas, Customer Service Manager

“I love how varied our portfolio is... It’s great that no matter what a school needs, we can always help them! ”

Josh Hadrill, Improvement Awards Manager

“There is always someone who’s able to help when you need.” Sarah Burne, Publications Lead

Lessness Heath School decided to focus on supporting and protecting mental health and wellbeing of the whole-school community – so worked with Optimus Education’s Wellbeing Award for Schools (WAS).

The WAS supports schools to make a mental health action plan that will improve the mental health provision for pupils and staff, created in partnership with the National Children’s Bureau.

Before the intervenion, the staff wellbeing audit showed they felt the huge demands of their role caused them to neglect their wellbeing – and that some were considering leaving the teaching profession. It also showed they didn’t know how to recognise or respond to mental health challenges.

By understanding the problem, Lessness Heath School gained a greater understanding of the importance of removing mental health stigma. They made many changes including creating a staff wellbeing notice board, appointing wellbeing ambassadors and delivering termly Continuing Professional Development with a focus on mental health and wellbeing.

5,000+ schools supported

80,000+ school staff supported in their professional development

1.7 million+ pupils reached

4,200+ hours of support for schools provided by the customer services team

An evaluation of the Wellbeing Award for Schools revealed that of 1,000+ schools enrolled on the award: 95% agreed the award had improved pupils’ behaviour

93% agreed it had improved staff wellbeing 93% agreed it had a large or medium impact on parent wellbeing

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Learning and Skills

Learning and Skills delivers apprenticeships, advanced learner loans, skills and employability to both unemployed and employed learners wanting to improve their skills.

We also support young people into traineeships, and support and develop learners with special educational needs through supported internships through youth education and skills.

This year:

We have supported 5045 learners, who have achieved 3222 qualifications

629 people have progressed to employment or further education

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Gavin found Shaw Trust via the job centre after being unemployed for a long time after an extended illness and recovery. He wanted to take some courses that interested him and grabbed his attention, including Level 1 Award Preparing to Work in Adult Social Care and Level 2 Certificate Mental Health Problems.

A Progression Officer supported Gavin with his CV, job applications, mock interviews and job searches; while his tutor who helped with the learning modules, feedback and guidance.

Gavin is now undertaking training for a new role in the Civil Service.

“My qualifications gave me a lot more confidence going back into work and the support I’ve had has made me feel more positive.

It’s only been a couple of years but you can start to lose touch with the jobs market but it helped me get back into work and I am now working with the civil service – it’s not quite what I expected but I am enjoying it and currently in the training part and then I will gradually be eased into the job role and put the learning into practice.

Sometimes things come by that you don’t expect and other ones you have to search a little bit for, but this one came by the job centre and here I am back in at 58 which I didn’t expect.”

Our learners say:

“I found this course really good - I got all the support I needed - I had the best tutor too!”

“I feel the course has helped me understand my strengths and it has given me a bit of my confidence back. Talking on camera to help other people who are not sure of whether to do the course made me realise I can push myself out of my comfort zone and survive.”

“The support was amazing. I feel very positive, and I am excited about starting my new job in the coming weeks. I am very thankful to Laura for her amazing input and pointing out some of my strengths. All of her suggestions I took her up on to see where it led and, in the end, it led me to my new job!”

Our clients say:

“An individual and personalised approach to functional skills and apprenticeship learning has supported our employees to develop. The apprenticeship learners are able to set their own pace, for example, provision has been made for those apprentices who want to work quicker on their apprenticeship to prevent them from becoming disengaged and bored.”

Regional Manager, STERIS

“This was a really well thought out and delivered training programme, which has clearly delivered exactly what we wanted it to, which is 100% start and completion rate. There are lots of job opportunities, so we are really pleased with it.” Employment Services Delivery Manager, London Borough of Camden

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Employability

Shaw Trust Employability is focused on supporting unemployed people with barriers to gaining employment.

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The people we work with have barriers to gaining employment including health, disability or other economic or social disadvantage. We offer wraparound support such as health and wellbeing support, training, information, advice and guidance (IAG) and mentoring.

In 2022 we supported 64,539 unemployed people with 30,838 of these either starting a new job or launching their own business.

Our main commissioners are the Department for Work and Pensions (DWP), the West London Alliance (WLA), and the Education and Skills Funding Agency (ESFA).

Our participants say:

“Support has been great - very helpful. Keep it going as the support could help so many people.” IPES – Digital Coaches participant

“My experience has been so positive, I am going to be able to use all of the techniques and advice I was given to succeed in life.” IPES - Talking Therapy participant

“I’m so thankful for IPES, it saved my life and gave me the ability to believe in myself. This is down to Antonia and Jaime, without them I honestly believe I would not be here today to write this.”

IPES participant

Going the extra mile

Our West London team has started a mini foodbank in the office with donations from local businesses to support participants impacted by the cost-of-living crisis.

Our advisors in the Birmingham Restart Hub use skills gained in their personal lives to engage and support participants. For example, Rob uses sign-language to ensure one of his participants Glodie gets the most out of the programme.

“Usually, I spend a lot of time typing on my phone to communicate with people. Being able to sign makes it so much quicker for me to explain what I mean. Rob also interprets what is happening in the office for me, so I feel more involved and understand what is going on around me.”

Glodie

Paul was supported by the Intensive Personalised Employment Support (IPES) programme. This DWP programme supports disabled people with complex needs. Here is his story:

Mark was supported through the Work and Health Programme.

Mark started his journey with the Work and Health programme in June 2021. He worked hard to improve his mental health, receiving intensive counselling and regular check-ins with the Shaw Trust Health and Wellbeing Team for further support.

After over three years of unemployment, Paul had lost his purpose – he felt lost, devalued, and that his age was stopping him getting into work. His mental health and wellbeing were impacted. He joined IPES to re-build his confidence.

Mark completed training including CV development, writing cover letters and applications, and mock interviews. In addition, he attended life coaching sessions around goal setting and completing tasks.

During the 14 months Paul was on IPES we focused on supporting Paul’s health and wellbeing with counselling, health at home interventions, strengthening support networks and occupational health support (resulting in a referral for much needed medical support). He now has a one-to-one care plan and is in much better health.

He engaged with our team extremely well and was able to identify employment opportunities with the NHS in his area of interest, Mark applied for a role, interviewed successfully and was offered the post.

After 14 months, Paul began to feel like himself again - emotionally and physically. He felt able to look for work again. Paul was successful, and now works as a Compliance Monitoring Manager - using skills and expertise he feared he’d never use again.

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Health and Wellbeing

Shaw Trust’s Community Health and Wellbeing approach enables people to cope better with challenges at home, in work and in communities.

13,884 330 Participants Occupational supported Therapists trained

4,944 374 Kent mental health Shaw Trust crisis phone calls colleagues/ answered stakeholders attended our autism 1,047 awareness sessions People trained in better mental health 521 and resilience Shaw Trust colleagues supported

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This year we:

We use the biopsychosocial model of support to enable better management of mental and physical health conditions.

Launched five new services:

• Shaw Trust Counselling service to employability participants.

• Shaw Trust Health Assessment service to Work and Health participants.

• Shaw Trust Training service to Work and Health participants.

The biopsychosocial model is an inter-disciplinary model that looks at the interconnection between biology, psychology, and socio-environmental factors. The model specifically examines how these aspects play a role in topics ranging from health and disease, to human development.

• Connect for Health service in Suffolk.

• Somerset Family Solutions service in Somerset.

Expanded existing services

• Kent Individual Placement and Support (IPS) service was expanded to include an additional team to support the increased demand.

Individual Placement and Support (IPS) supports people with severe mental health difficulties into employment. It involves intensive, individual support, a rapid job search followed by placement in paid employment, and time-unlimited in-work support for both the employee and the employer.

• Work to Recovery IPS service in Birmingham was expanded to include an additional team to support the increased demand.

• Our Shaw Trust clinical practitioners were expanded into our Children and Young People’s Services to work supporting young people with their mental health needs.

Key achievements

When Ben Brazil came to Live Well Kent he said he had no hope for his future. Anxiety meant he found it difficult to leave the house.

• IPS Grow Quality Kitemark awarded to Work to Recovery.

“We are so pleased with the delivery of the IPS Service and the changes Shaw Trust have implemented. The service has gone from a failing contract by the previous provider to one of best practice being recognised by NHS England and IPS Grow.”

Until he was 19, Ben had been a successful judo professional – travelling the world and taking part in tournaments. However, when he was 17 Ben developed Crohn’s disease. By 19, his deteriorating health meant giving up judo.

Birmingham and Solihull Integrated Care Board

This sent his life on a very different course.

Ben was referred to our counselling service. His confidence grew daily and he learned to accept himself. After completing the course, Ben applied to be a Shaw Trust volunteer - attending groups, sharing his journey, and helping people to believe in themselves again.

• 101/125 score on Kent and Medway IPS ’s first IPS fidelity review.

“Shaw Trust have an important contribution to make in shaping the Community Mental Health Team offer in Kent & Medway and it is good to know it is in safe hands as you explore new areas to use IPS. Please keep doing what you are doing…”

Ben has now achieved 8 City and Guilds certificates, he has become a business you are doing…” owner, a qualified mechanic, an MOT NHS England examiner and a fully qualified MOT • Live Well Kent won the Kent Housing award manager. for excellent partnership working.

“When I first came to Live Well Kent I wanted to take my own life. I had nothing “There really couldn’t have been a better and nobody to turn to. I had sessions with example of partnership so I’m glad to see the Julie and then I was introduced to the award rightfully came to Live Well Kent”. ‘Living in the Moment’ group. I learned so Kent County Council much in the group about myself; I learned to live in the moment and grab every • Silver Covid 19 Response Awards for our opportunity with both hands, I learned to Covid 19 Staff Health and Wellbeing Initiative. love myself and all that I am. I have been • Shortlisted for CIPD hugely prestigious given the tools to be able to deal with Peoples Management Awards for the everyday life. My life has changed Best health and well-being initiative public/ so much.” third sector.

“There really couldn’t have been a better example of partnership so I’m glad to see the award rightfully came to Live Well Kent”. Kent County Council

• Silver Covid 19 Response Awards for our Covid 19 Staff Health and Wellbeing Initiative.

Ben raises awareness around mental health and the services available to help by telling his story.

We nominated Ben for a Social Prescribing Award and he won the award for the most inspirational person 2022, sponsored by NHS England.

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Justice

Our work in the justice sector is designed to enable the people we support to contribute positively to society and break the cycle of offending and reoffending.

We work with adults and young people both within custody and in the community supporting them to affect positive change.

300 Young People Educated at Feltham

701

People Supported by CFO3

1500+

1500+ 690 Exams Passed by Jobs secured CFO3 Young People at Information, Advice Feltham and Guidance 1418 contracts delivered in People Supported by 16 prisons across the UK

1418 People Supported by CFO Activity Hubs

2434

360+

Community and social interventions 72 Interventions and services to reduce recidivism

Colleagues working in Justice

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Participants and colleagues took turns walking from John O’ Groats to Land’s End (812 miles) with everyone proudly wearing a poppy. After each person has finished their section of the walk, their poppy is added to the board to demonstrate participation.

Our Work

We deliver contracts for the Ministry of Justice, Youth Custodial Services and HMPPS/ CFO (part funded by the ESF) to improve social inclusion among ex-offenders through education, training, Information, Advice and Guidance (IAG) and employment support, both within prisons and upon release. We deliver in 48 custodial establishments and over 114 community locations across England, including seven dedicated CFO Activity Hubs in the West Midlands, East Midlands and East of England each offering a warm welcome, a hot drink and one-to-one with a support worker, group sessions and space for participants to work on their own with our staff available.

Not only did the initiative help improve fitness it led to improved participant engagement in other activities offered at the Hub.

Participants attending activities at our hubs say:

“Great day! So much to offer and what a difference you make. Really informative. Thank you.”

“What a fantastic hub, well organised, great staff, good vibe to it…very welcoming!”

Stoke CFO Activity Hub Supports the Poppy Appeal

”What a lovely space. Great, safe atmosphere and some wonderful, magical work taking place.”

One of our support workers at our Stoke CFO Activity Hub wanted to do something for the Poppy Appeal, as he is part of the Veteran’s Support Network, so decided to stay in for a walk in remembrance for those who have served for us.

Comments from Colleagues

“Throughout my time with Ixion and Shaw Trust, I have always felt that the company truly does put the participants at the centre of all that is done. The work I do gives me great satisfaction, knowing that what I do, genuinely makes a difference to people’s lives. I believe that progression within Shaw Trust is important to higher management, including the CEO and that staff are supported with this. I am proud to say that I work for Shaw Trust.”

“I find this role extremely rewarding. Every day is different, I am able to feel like I am making a difference to people’s lives, and this job challenges me and has given me invaluable skills such as creative problem solving. I work as part of a great team who are very supportive. Seeing the real life impacts our support has for our participants, and how it can change their lives for the better, is very fulfilling.”

“Being a community case manager offers me job satisfaction as I enjoy helping people grow and improving their quality of life. Shaw Trust has been very accommodating to my lifestyle as I have a young son. They have granted me flexible working hours which enables me to complete my job role more efficiently. My line manager is wonderful and always helps me where needed.“

“I love working for Shaw Trust and I feel that it’s refreshing to have a company that truly lives by its values and invests in its people. I feel very proud of my team and the positive effects we make on people’s lives, and I feel very passionate about the work we do and what value it brings not only to our participants but to society.”

“I joined in 2017 as a community case manager. Since then, I have progressed twice and have really grown in confidence. Joining Shaw Trust has allowed me to get involved with equality and diversity groups and has allowed me to get involved with areas I am passionate about outside of my day-to-day job. Having a management team that really believe in their staff and their purpose makes coming to work much easier.”

Feltham Education welcomes ministerial visit

One of the areas where we work supporting young people is at Feltham Young Offenders Institution (YOI). We provide the young peoples’ education, and like at any school or college, we employ teachers, prepare lessons and support the young people to take exams including GCSEs, vocational and educational qualifications. But we do it within the prison.

In March Victoria Atkins, Minister of State at the Ministry of Justice and Minister for Afghan Resettlement visited with Helga Swidenbank, Executive Director Youth Custody Service. Both commented positively on the significant improvements in safety, behaviour, engagement, and outcomes for learners at Feltham YOI since early 2020. These improvements have taken place despite the Covid-19 pandemic and were recognised in a recent visit by Ofsted.

Speaking about the visit, and the improvement over the last two years, Patrick Allen, our Head of Education at Feltham YOI said: “Meeting the Minister and Helga and receiving their feedback, where they recognised the hard work done by the Shaw Trust team at Feltham YOI was extremely satisfying. The whole team has come together in building effective partnerships with our HMPPS colleagues, thus enabling the successful implementation of a revised curriculum, a trauma informed approach to behaviour management and a shared learner centred vision of high expectations, which formed the foundations for the significant improvements.”

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Ixion Innovation

Ixion Innovation helps organisations develop world beating products, processes and services to tackle major societal, environmental and economic challenges.

This year, Ixion Innovation has:

Secured £ 12million+ grant funding

Seen a 5-10x success rate compared with the average applicant

Secured funding for several UK companies under the Horizon Europe funding programme (deemed almost impossible post-Brexit)

The nearly 20- strong team of scientists, engineers, technologists and business specialists focuses on securing innovation funding to help pay for ambitious projects. Ixion is renowned across Europe as one of the most successful grant acquisition organisations.

Our clients say:

“You have literally changed my life.” Jason Hill, Managing Director, Dynamiq

Ixion won over £2m of Innovate UK funding to allow Dynamiq to develop a new, high performance, affordable turbine powered helicopter. As a result of our work, they have secured 658 deposits for the aircraft (approximately £60 million).

“It is fantastic, the feedback, the score, the funding, It will enable us to take the next steps. It wouldn’t have been possible without the very skilled Ixion Innovation team.”

Arve Stavrum Tang, CEO, Cemit Digital

Ixion won €1.6m of funding from Eurostars for Cemit Digital, securing the number 1 ranked application across Europe.

“I would like to place on record that I have been very impressed by Ixion’s support and leadership throughout this process – Nice job!” Martin Coleman, CFO, Metrasens

Ixion won a major Innovate UK grant application for Metrasens to develop a novel security scanner that doesn’t need a person to empty their pockets.

Ixion secured a €1.8m grant and €6m of equity investment for Handiscover.

Handiscover focuses on solutions helping disabled people to navigate and travel. This project focused on the accessibility of hotel accommodation. Handiscover are trailblazers, using sophisticated technology to deliver fast, accurate, automated classification of hotel accommodation.

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Our commitment to our colleagues

CEO Shadow Programmes

Shaw Trust offers two CEO Shadow programmes, both offer colleagues an opportunity to learn directly from our Chief Executive Officer, Chris Luck.

CEO Executive Shadow Board

The Shaw Trust CEO’s Executive Shadow Board enables colleagues to get involved in the shaping of Shaw Trust and provide suggestions directly to the CEO and senior executives on strategic issues. The purpose is to diversify the perspectives our executives hear and bring a more diverse, non-executive and younger mindset with an alternative viewpoint to strategic issues being discussed by the Executive Board.

“It has given me an insight into how to challenge leaders effectively and changed how I consider and complete tasks within my role.”

CEO Shadow

Colleagues follow Chris in his work over a day or a few days. Accompanying him to meetings and observing what it means to be a CEO. Participants grow their insight and experience into how a large organisation operates at the group level, and have one-to-one meetings with the CEO.

Apprenticeships

Blending work experience and academic study, apprenticeships offer Shaw Trust colleagues progression opportunities including learning new skills, gaining experience, achieving qualifications and expanding their network.

At present 6.7% of our workforce are undertaking qualifications. This is ahead of our target of 5% of our workforce.

“This change from mentoring to coaching has helped me develop my skills and expertise, so not only do I have the skills and knowledge from my career, but I’m also equipped now to tackle my new role thanks to this apprenticeship.” Adam Waite

Future Leaders Programme

The Shaw Trust Future Leaders Programme prepares our next generation of leaders with the skills, knowledge and experiences to move into senior leadership positions at the very top of our organisation. Ten colleagues from across our organisation made up the first cohort.

The programme is supported by speakers including the Rt. Hon. Sir David Lidington, KCB, CBE, former minister for the Cabinet Office and Lord High Chancellor and Air Marshal Edward Stringer CB, CBE, who served as DirectorGeneral of the Joint Force Development, Strategic Command.

“The Future Leaders programme supported me to hone the skills I will increasingly draw on in my career. I heard from some amazing speakers and ringfenced the time for learning that it is so hard to find within my busy day job. But most importantly, I made connections across Shaw Trust with other future leaders - and I know we will continue to support and champion one another during our careers.” Renata Graver

Policy Interns

This programme enables young people with diverse lived experiences who are often underrepresented and unable to influence government policy, to gain good work experiences and take an important first step on their career journeys.

“After experiencing the negative effects of longterm unemployment, and as a participant on the Work and Health Programme (WHP) I have first-hand experience of accessing employability support. Given the lack of inclusive and accessible employment opportunities, I was delighted that this internship highlights the importance and value of different lived experiences and what that can bring to an organisation.”

“My experience in the Policy team has cemented my passion and research interests in improving the employability prospects for disabled people and helping to create evidence-based policy interventions to advocate for a future that is inclusive and enables disabled people to secure, stay and progress in their careers.”

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Shaw Trust people

Our colleagues and volunteers are our greatest strength.

Each person at Shaw Trust helps us achieve our purpose, define our culture, uphold our values and deliver high-quality programmes. Our people link us to those we support and keep us true.

We empower people to achieve their full potential and we support, value and progress our workforce. Trusting our colleagues to enable young people and adults towards, and into, sustainable, rewarding and meaningful employment. Our colleagues share our vision providing advice, guidance and support to move families out of poverty. Here are the stories of some of our people.

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Clare Gray

I have worked in the disability sector for over 30 years and am Head of Shaw Trust Disability Advocacy. In this role, I inform policy on matters relating to disability and advocate for others to advance equality and future provisions for disabled people, targeted towards work, skills and employment.

I am actively involved in responding to governmental accessibility and inclusion consultations for adults and children and have a leading role in managing relationships and meeting government officials and specialists to represent the views of Shaw Trust participants.

Since 2019, I have grown the Disability Power 100 initiative, now in its seventh year profiling the most influential disabled people in the UK.

Jacqueline Ffrench-Martin

I am a Careers Adviser with Children and Families Services and I am on the Shaw Trust CEO Executive Shadow Board.

The CEO Executive Shadow Board has allowed me to be actively involved in understanding the organisation’s Strategic Directive 2030. I had the opportunity to lead my Shadow Board group; to prepare for and to present a Board paper, and have been mentored in chairing meetings with both a guest speaker and an observer.

As part of my development journey, the CEO Executive Shadow Board has been a very inspiring experience.

Anna Marasa

I am an Employment Advisor working for Forth Sector which is a part of Shaw Trust. I’ve been working in Employability for the last 20 Years (10 years at A4E, 3 years at Shaw Trust, 7 years at Forth Sector).

I carry a caseload of 20 clients delivering AllinEdinburgh Supported Employment. Since Brexit my caseload has been predominantly European and as I am multilingual, I provide support mainly for people coming from different European backgrounds.

I provide additional interpreting support to clients, employers, and other interested parties such as NHS, Welfare Rights Services, Edinburgh Council, Banks etc. A number of my clients have to face additional difficulties due to the new Home Office Legislation introducing Settled and Pre-Settled Status. I upskilled myself so that I could assist my clients to live, work and remain in the UK.

Mel Brown

I am an Enterprise Assistant/Job Coach and have been working at Shaw Trust since September 2015.

My role at Shaw Trust is to look after the plant nursery stock, provide job coaching for our supported employees, interns and learning disabled people – for example, creating instructions on planting, plant care, getting orders together, and training on how to make Christmas wreaths.

I help people to learn new skills, and grow their self-esteem, help them to improve their social skills, enabling them to integrate and feel part of a wider community by providing work experience opportunities.

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Maysa Tachmedova

I work as a Support Manager on the West London Alliance Work & Health Programme at Shaw Trust. In my role as a Support Manager, I work alongside my colleagues to provide support to participants on the programme and help to equip participants with skills and knowledge to achieve and retain employment. Before joining Shaw Trust, I worked as In-House Recruitment Manager for the Royal Hospital for Neurodisability in Putney, leading on resourcing and recruitment initiatives across the hospital.

I completed the CIPD Level 7 (Human Resources Management degree at University of West London in 2012). I have a Master’s degree in Business Administration (MBA) from University of Wales Institute, Cardiff.

I support participants who are looking for work. I conduct regular review meetings with the participants to review their progress and to set a plan of actions for the next two weeks. I enjoy interacting with people and building rapport with my participants, colleagues and other stakeholders within the business.

I love every part of my job and find it very rewarding to see my participants fulfil their potential and to see them looking forward to the future!

Shelby Rimmer

I am a Home Manager at Lilac House. I was part of the initial team to open the home. I had previously completed a psychology degree and was working in the customer service industry. I knew I wanted a career supporting young people and making a difference to the lives of others but at the time did not have any experience working in residential care homes.

Within my role as home manager, I am responsible for the day to day running and oversight of the home. My responsibilities include maintaining positive relationships with the local authority that places the children in our home and ensuring that objectives are being met for the young people in our care. I work hard to ensure I build and maintain positive relationships with the young people placed at Lilac House to ensure they feel welcomed, accepted and supported throughout their time with us.

Mike Olner

I am Head of Mobilisations and Closures, in the Shaw Trust Change Team. I’ve only been in my new role for a few months, previously I worked in operations for our Justice contracts. I joined Ixion as a regional manager in the Midlands, looking after our CFO3 contract, a voluntary programme preparing people to leave custody. After a few of years I was promoted into a Head of Operational Development for the contract, working across Ixion and Shaw Trust, a role I did for four years before my latest role.

All my roles at Shaw Trust have had similarities, they address social exclusion and support people into employment. I’ve also been involved in setting up contracts which has given me lots of transferrable skills, and this has helped me move roles.

For the last two years I was also Employee Voice chair, and that gave me opportunities to develop my skills and work with different people. It was central to my progression into my current role, as it gave me strategic opportunities. Employee Voice isn’t some sort of tick box at Shaw Trust, you have a seat at the table.

Shaw Trust also has so many learning courses on our in-house academy and I’ve always been keen to do as many of the courses, beyond the mandatory courses as possible – and encouraged my teams to do the same. I feel there is lots of opportunity for horizontal career progression at Shaw Trust if you put yourself forward.

Shamajul Motin (Sham)

I am a Service Manager for Shaw Trust managing the Borough of Havering and I have worked here for five years. Currently I run multiple projects including Careers Guidance Service for schools and colleges, a mentoring initiative for at-risk year 11s.

I love that we help young people make the first step to change: when you don’t have the best school / college life you are often forgotten, I feel the support we provide demonstrates there are companies who genuinely care.

Most recently I have seen three young people – now in their 30s – that I used to coach or mentor during my football days. To see them all grown up and to hear that they remember me and say I was a positive influence has really meant a lot to me. Moments like that reassure me that we are needed and vital to support the younger generation.

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Volunteering at Shaw Trust

At Shaw Trust, we are deeply grateful for the support of volunteers – whether that’s people who choose to donate their valuable time to Shaw Trust to further our mission, or our colleagues who volunteer at Shaw Trust and elsewhere.

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We have 718 volunteers giving their time to Shaw Trust and those we help – here are some of their stories.

Christine Roffey – Live Well Kent & Medway volunteer

Chris helps run ‘Living in the Moment’ workshops for Shaw Trust – Live Well Kent & Medway, volunteering with one of our partners, Julie Rogers who runs JR Counselling. Currently they are doing this virtually. Chris has been a volunteer for three years. She was recently shortlisted for ‘Most Inspiring Person’ in the international Social Prescribing Awards.

“Volunteering has really helped me build confidence in myself. I’ve found it truly amazing to be able to share my experience with others and show them things can change. Supporting and helping others gives me purpose and a real sense of achievement, it’s always such a privilege to be part of their journeys and the rewards are amazing.”

Paul Storey – Retail volunteer, Seaham

Paul has been volunteering at our Seaham Shaw Trust Shop for around six years and is a very dedicated and valued member of our team. Over the Easter weekend this year, Paul gave up his days off to run the tombola and thoroughly enjoyed raising a whopping £301.

He volunteers because he has free time to give, and he can’t think of any other way to spend that time apart from helping others and particularly those with disabilities. He has made many friends while volunteering and he just enjoys every moment of being at the shop.

“My brother is disabled and I have supported him all my life and so I have developed skills that help when working with disabled people. I enjoy helping people and training other volunteers on the day-to-day operations of the shop.”

Claire Street – peer support volunteer, Work and Health Programme

“My journey started in December 2019 as a participant on the Work and Health Programme. Through volunteering for Shaw Trust, I have grown in confidence by pushing myself out of my comfort zone. When I first started with Shaw Trust I wouldn’t stand up in front of people and talk to them. Now that I have so much more confidence within me I would definitely do it now. To be accepted and respected by the people I volunteer with is so positive, uplifting, inspirational and rewarding and I feel that I can smile every day knowing how much Shaw Trust has had a personal impact on me.”

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All our Shaw Trust people have up to two days they can use for volunteering each year. In 2021-2, 153 days were given by Shaw Trust staff. Here are some of their stories.

Mark Earl, Chief People Officer – Berrylands nature reserve volunteer

“Berrylands is my local nature reserve, and depends on volunteers to maintain and enhance the local environment. My children came along with me to help– raising their awareness of the importance of local nature reserves and how they rely on volunteers to maintain them. We helped to water the orchard trees, litter pick and remove invasive weeds. It was great to be able to lend a hand with maintaining our local nature reserve, I intend to carry on volunteering here.”

Serena Laidley, Shaw Trust Restart Programme – Commonwealth Games Volunteer

For Serena, volunteering for the Games was partly about belonging and community. “Two of my grandparents came from Jamaica. To be given an opportunity to contribute to Britain like they did, it was an honour. Being black, being British, being from Brum – these felt like my Commonwealth Games”.

Serena was part of the regional volunteering crew in Birmingham in 2021. Then in March 2022, she was invited to star in adverts. For the Games themselves, Serena led a team of volunteers to make sure guests in the NEC had what they needed. Facing challenges from train strikes to language barriers, Serena’s endless empathy and energy helped her to get through.

Jodie Stevens, Support Manager – Banham Zoo volunteer

“I have volunteered at Banham Zoo previously and decided that I wanted to do it again, this time with my colleagues Kristen Loveday, Rapid Response covering AM Kat Riley, Malgorzata Hernik too.

Upon arrival, we were greeted by the Volunteers Coordinator, Hayley Potter, who took us to meet Becky who we would be working with for two days. We were told we would be painting animal enclosures - the tigers’ enclosure on day 1, and the cheetahs’ enclosure on day 2.

It was a privilege to be where the big cats would socialise and sleep.

The work, although physically demanding, was thoroughly enjoyable, and we have already said that we would like to do it again next year. It was really good spending time with colleagues and getting to know each other.”

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The Shaw Trust Foundation

As a charity we add value to everything we do by investing back into the people and communities we support. The Shaw Trust Foundation is a visible and accountable rallying point for Shaw Trust’s charitable purpose and activity.

The Foundation receives the surplus revenue generated through our work across Shaw Trust. It uses this profit for a purpose to create change; incubating and growing projects and pilot programmes that support people from childhood to retirement to improve social outcomes.

The Foundation helps create greater impact and generate social value with like-minded organisations.

This year we have:

• Been thought leaders, engaging with government departments, Ministers and local authorities, responding to government consultations and convening stakeholders to develop real world solutions.

• Delivered the Disability Power 100.

• Employed four policy interns.

• Incubated two social enterprises - Dose of Nature and Disability Policy Centre.

• Sponsored the Somerset Council Children and Young People in Care Awards.

• Sponsored the Northamptonshire Children’s Trust Children and Young People in Care Awards.

• Supported individuals with charitable donations - an army uniform and equipment; a subscription for Sky TV (during the pandemic) for an ex-care leaver so he could watch sport to help his mental health and avoid isolation.

Incubator

The Shaw Trust Foundation Incubator model offers a package of support that can contain governance, bid writing, financial planning, policy and compliance, marketing and communications, HR and payroll, helping organisations to grow and increase their impact.

Dose of Nature, a charity promoting the mental health benefits of the natural world, was the first charity to be supported by the Shaw Trust Foundation’s incubator programme. This support has enabled Dose of Nature to win a funding bid to support 150 people in Surrey to improve their mental wellbeing through nature prescriptions, group therapy and workshops.

The new Dose of Nature programme will be available through GPs in Surrey, who will be able to prescribe the ten week course as an alternative to drug and other therapies. With a team of clinical psychologists providing support, Dose of Nature volunteers ensure participants spend time outdoors and are guided through the mental health benefits of being in nature and encouraged to visit nature independently.

• Funded a joint post with Shaw Trust Children’s Services to work with children in Northamptonshire Children’s Trust (evaluated by University of Northampton) to support children living in our children’s homes health and mental wellbeing, to improve education overall outcomes.

• Funded an additional Health and Wellbeing post in Northamptonshire to support care experienced young people supported by our Homes2Inspire and NEET (Not in Education, Employment or Training) teams.

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Shaw Trust Disability Power 100

We’re proud to celebrate Britain’s most influential disabled people and organisations.

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100

The annual Shaw Trust Disability Power 100 celebrates the most influential disabled people in the UK, nominated by the public and judged by an independent panel. Nationally and internationally recognised, it is the only campaign that shines a light on disabled people at the top of their game and in positions of influence across all sectors of society. It celebrates and recognises that having a disability or health condition is not a barrier to success or a limit on what you can pursue.

More than 20% of people have an impairment and too often society sees disability before capability, unintentionally excluding Disabled People, muting their impact and limiting inclusion. Disabled people navigate an inaccessible world, equipping them with unique perspectives, expertise and experience that is often overlooked.

Top 10

1. Rose Ayling-Ellis, Actor

2. Shani Dhanda, Social Entrepreneur, Disability Inclusion Specialist and Broadcaster

3. Victoria Jenkins, CEO and Founder, Unhidden

4. Anna Landre, The Partnership for Inclusive Disaster Strategies

5. Dr Halima Begum, Chief Executive, the Runnymede Trust

6. Ellie Simmonds, Paralympic Swimmer

What people said:

“You and all the wider Shaw Trust team should feel very proud, as this wonderful – and important - occasion in the UK’s disability calendar continues to go from strength to strength.”

Andrew Douglass, CEO Innovision

“To say I came away inspired is an understatement. It was a truly humbling and motivational event and there is no doubt that I’ll be singing the Disability Power 100’s praises to my colleagues.”

Alexander Trusty, Moody’s

“I just wanted to say a huge thank you for a fantastic event yesterday. It was fabulous meeting like-minded people, the venue was brilliantly located and we were very well looked after. The panel discussion was insightful and it was great to see the category winners and to hear from the very inspirational top 10.” Joanne Austin, HSBC Bank

• “A note of thanks to you all and your teams for making yesterday such a tremendous and very accessible event. It felt great to be a part of it - the scale of it was awesome - and being made so welcome. As I said on stage the Power List is a vital annual platform and the only one of its kind, long may it continue!”

• Andrew Miller, MBE

753 Disability Power 100 public nominations

18 Disability leaders as judges 9 Categories

2 Sponsors, Lloyds Banking Group and Indeed 100 Disability Power

Influencers selected 5 Rising Stars 3 Judges’ Choice 1

Parliamentary roundtable 1 Celebratory Event 225 Attendees

1. Kim Tserkezie, Actor, Presenter, Writer, Producer and CEO Scattered Pictures

2. Amy Francis-Smith, Architect, Inclusive Design and Access Consultant

3. Dr Elliott Spaeth, Lecturer in Academic and Digital Development

4. Andrew Miller MBE, Cultural Commentator, Broadcaster and Disability Champion

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Disability Advocacy

Shaw Trust’s Disability Advocacy influences positive change for disabled people in the communities we support and in the sectors in which we operate.

Shaw Trust has a bold ambition to drive the impact of Shaw Trust’s Disability Advocacy work, boosting our reputation and standing in this area, as well as to drive commercial opportunities.

We will:

Lead the agenda Convene stakeholders Conduct and contribute to research Engage with government, associate bodies, representative groups and advocacy agents

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Disability Employment Charter

All-Party Parliamentary Group (APPG) Roundtable

Shaw Trust Foundation is a founding member of the Disability Employment Charter, launched at the Disability Power 100 2021:

Our joint event with the Disability Policy Centre and APPG for Disability held at Portcullis House, Westminster in June positioned Shaw Trust as an influential voice around issues for disabled people while developing positive and successful new partnerships with leading sector voices:

• 120+ signatories.

• Independent and ITV News coverage.

• Institute of Directors endorsement.

• High-profile panellist speakers and attendees including Dr Lisa Cameron MP (Chair of APPG for Disability), and Marsha De Cordova MP.

• £18 million government funding for supported internships.

• Roundtable at the House of Commons attended by Chloe Smith MP in her capacity as Disability Minister, Dr Lisa Cameron MP and Jeremy Hunt MP.

• Panellists included Sophie Morgan (TV presenter and disability advocate), John Horan (barrister) and Andrew Miller MBE (cultural consultant and broadcaster).

“A welcome initiative.”

Chloe Smith MP, Minister for Disabled People

“We’re talking about power here… ‘power concedes nothing without a demand.’ It never has done, and it never will do. That is something we – as a disabled community and also our allies – should always be very, very mindful of.” Marsha de Cordova MP

Vicky Foxcroft MP, Shadow Minister for Disabled People, called on the government to implement the Charter in its entirety, and with immediate effect.

Read more about the discussions held at this event

Shaw Trust/PurpleSpace Bursary Scheme

Engagement

We have worked with senior Cabinet Office officials on Disability in Workplace Reporting and meeting with fellow founding signatories of the Disability Employment Charter to present academic research conducted by Disability@ Work and other leading bodies including the APPG for Disability and the Centre for Social Justice Disability Commission.

We launched the Disability Power 100 Bursary Scheme in partnership with PurpleSpace. It provides support and mentoring for individuals to set up disability peer networks in their own organisations and supports them to build purposeful networks/resource groups. Bursaries have been awarded to people within academia, the armed forces, NHS, police and banking sectors.

Shaw Trust was included in an elite list of 77 Business Disability Experts by Valuable 500, a global movement engaging 500 global CEOs of multinational businesses to commit to action on disability inclusion.

“Thank you so much for awarding the place on the Scheme this has just made my year. I am so excited and thankful.”

Jamie Shields, Lead Talent

Research - Shaw Trust contributed to:

Acquisition Specialist

• Inclusion in Business Banking & Credit - the Lending Standards Board.

• The Everyone Economy - the Chartered Management Institute.

• Lived expert advisory panel - NatWest.

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Our environmental impact

Shaw Trust is committed to sustainable development, recognising the environmental impact of our operations, and pledging to reduce our ecological footprint.

Our 2030 strategic environment aims:

1 Become carbon neutral

2 Support biodiversity enhancement 3 Provide traineeships and volunteering opportunities for our participants

In 2020/21 we:

We aim to:

Significantly reduced our carbon intensity ratio from 2019/20 rates by:

• Contribute to reduced air pollution, specifically particulate emissions, through a Green Transport Programme, encouraging employees to consider their travel management plans, minimising the need to travel.

• 22% per employee (from 1.47 tCO2e to 1.14 tCO2e per employee).

• 36% per participant

  • (12.22 to 7.86 kgCO2e per participant).

• Develop a progressive waste management strategy promoting resource efficiency and circular economy solutions.

Switched our energy providers to Yu Energy and SSE Gas.

• Reduce the volumes of waste sent to landfill through waste minimisation, re-use, recycling and recovery verification policies and lifecycle auditing.

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Our awards

This year Shaw Trust was delighted to receive three major awards, and be highly commended or shortlisted in three others.

CIPD best equality, diversity and inclusion initiative — winner

The award recognises employers that are genuinely dedicated to creating an inclusive and diverse workplace.

The CIPD judges were impressed by our holistic approach, celebrating difference and using data to influence decision-making while working with a limited budget during a period of rapid growth.

Shaw Trust colleagues say:

“I believe bringing awareness of the lived experience of Black, Asian and Minority Ethnic staff and users and their experiences of inequality helps to make a better organisation.”

“I feel less isolated knowing there are people with lived experience that I can draw on for advice.”

Trustee board of the year at the Charity Times awards — winner

Our Trustees align with and support our mission and values, giving their time willingly and voluntarily.

We have recruited an increasingly diverse Trustee board in the last 12 months, going from 20% to 40% female, and from 20% to 36% ethnically diverse.

Our Trustees bring a wide variety of specialist skills to the table, from experience in children and family services, to education and disability advocacy. They attend each Employee Voice, our colleague representative group, hearing directly from colleagues; and visit our operational sites to meet with our colleagues and participants, gaining insights into our services.

“Shaw Trust is the first place I have worked where I feel comfortable to share that I am dyslexic.”

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Covid 19 response award for best staff support/wellbeing initiative during lockdown — silver

“[Shaw Trust’s] thoughtful, innovative and people-centred approach to support staff, volunteers and the wider community [evidences that Shaw Trust are] a values-driven charity, who care about their own staff and the individuals they support too.”

Judge

CIPD best learning and development initiative award – highly commended

Shaw Trust colleagues say:

“After the programme my desire to help change a young person’s life has intensified. The training was exceptional and really inspiring! It enabled me to further my skills in the mentoring area as well as gain valuable knowledge regarding mental health first aid. A life changing opportunity. Thank you.”

CIPD best health and wellbeing initiative – finalist

Shaw Trust colleagues say:

“The Health and Wellbeing team has been instrumental in painstakingly repairing the psychological fabric of our staff even in instances where that fabric has been ripped apart by personal trauma and tragedy. These successes would never have been possible were it not for their intervention.”

National Equality Standard (NES) - the UK’s leading Diversity, Equality and Inclusion standard – achieved

“I am delighted to say that Shaw Trust has met the level of proficiency required and have therefore been successful in achieving accreditation. It is noticeable that Shaw Trust has put substantial effort into Diversity and Inclusion activities over the last few years, and that this is beginning to have a positive impact on the organisation. A robust strategy driven by the board is driving progress.” Arun Batra OBE, CEO and co-founder of National Equality Standard.

Charity Times Charity of the Year and Supporting Leader of the Year – shortlisted

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Shaw Trust aligns with the UN Sustainable Development Goals

CYPS EDULS Employability Foundation Central Pillar

1. No Poverty

2. Zero Hunger

3. Good Health and Wellbeing

4. Quality Education

5. Gender Equality

6. Decent Work and Economic Growth

7. Industry, Innovation and Infrastructure

8. Reduced Inequalities

9. Sustainable Cities and Communities 12. Responsible Consumption and production

10. Climate Action 16. Peace, Justice and Strong Institutions

11. Partnerships for the Goals

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Trustees Report and Strategic report

Future Strategy

The Trust has agreed a 10-year strategy and objectives, outlining our ambition and commitment to deliver high quality services to the people we support and our commissioners.

Sir Kenneth Olisa steps down as chair, having steered Shaw Trust over the last nine years. Olly Benzecry has been appointed as the new Chair. He has been deeply involved with organisations helping to solve under-employment. Most recently, Olly was the chairman and managing director of Accenture UKI.

Our Vision 2030 Strategic Directive defines the short to medium term priorities which must be met to ensure that we have an organisation fit for the next decade. It lays out how we will deploy our skills and services to offer people centred tailored support and how we will work with commercial and charitable partners to meet our commissioners’ policy objectives.

The Trust continues to focus on maximising performance on its key contracts and as part of its strategic vision to significantly increase the number of individuals supported, is looking at growing activity in existing and new markets.

After a decade of austerity and the impact of Covid-19, the demand for The Shaw Trust’s services is increasing and will drive our plans to respond with increased capacity whilst retaining quality. We will retain employability as our principal specialisation, and we will grow our complementary services to support it in the following areas:

• Education, Learning and Skills.

• Children and Young People’s Services.

• Health and Wellbeing.

The Trust has recently re-organised its internal structure into specialised operational divisions, each with individual targets to grow and develop in their own markets, with the benefit of being able to draw upon the breadth of experience from across the Group in order to provide an enhanced range of services to commissioners and clients.

The Trust continues to deliver in line with its Strategy, with divestment of non-core assets and businesses substantially complete and with the clear objective of building up a strategic reserve, including funds with an investment manager.

Although the worst of the Covid-19 pandemic is behind us, ongoing impacts remain, and are assessed and mitigated where appropriate. Financial modelling and scenario analysis has indicated that the Trust has the resources to sustain a period of operational disruption and financial loss as a result of longer-term impacts from this crisis and the challenging economic headwinds.

Objectives and Activities

The objectives of the Trust are as follows:

To relieve any person who is in need because of any disability or because of any other disadvantage resulting from unemployment, youth, age, financial hardship, ill-health or because they are offenders, ex-offenders or are at risk of offending:

• The promotion of the health, equality and independence of disabled people; and

• The prevention and relief of poverty.

The Trust aims to further its objectives, in particular by providing education, training, rehabilitation, support, employment opportunities and personal development opportunities.

The Trust will be non-party in politics and nonsectarian in religion.

The strategic aims of the Trust are as follows:

• Maintain a balanced portfolio of services to ensure robustness and resilience across the Group and avoid dependency on a single commissioner or contract.

• Deliver an integrated, blended and seamless portfolio of services and programmes that are locally based and nationally scalable.

• Innovate and continuously improve our offer to include digital-by-design and digital-byexecution where and when appropriate.

• Continue our advocacy work through dialogue with commissioners and government to improve access to and quality of employment for all.

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In order to deliver our aims, we will:

• Grow our balanced portfolio to support the national need.

• Expand our employability programmes through the new DWP departmental framework as a partner of choice.

• Examine the requirement and portfolio fit for Early Years interventions.

• Maximise the potential of our Homes2Inspire children’s homes.

• Increase our children’s services engagement with Youth Offending Teams across the UK.

• Increase our children’s services support for looked after children, young offenders and young people who are at risk of becoming Not in Education, Employment or Training (NEET) by expanding our NEET offer.

• Expand our Health and Wellbeing services support using the ‘Live Well Kent’ model.

• Review and adjust the various Social Enterprises now within The Shaw Trust Group for strategic fit within our growth pathways and layered services.

• Establish The Shaw Trust Foundation and The Shaw Trust Policy Institute.

The Shaw Trust Foundation and Policy Institute give the charity a visible and accountable rallying point for the charitable purpose and activity in our organisation. The Foundation will actively fundraise to support our work and it will house The Shaw Trust Policy Institute, which will champion positive change for the people and communities we support, and the sectors we operate within.

The Foundation aims to create a better tomorrow for more people across the UK by establishing a grant giving programme to offer access to services and support not otherwise available. It will help us further our impact by maximising opportunities to generate social value with likeminded organisations. The Foundation will advance social justice through social value adding programmes, support initiatives that build community and improve individual lives, and champion those with barriers to progression in life, and will build a community

of volunteers and supporters to campaign for and support our charitable mission.

Operational Review

The Trust operates across a number of sectors to achieve its aims and objectives:

Children’s Homes and Fostering Services

Our children’s homes and fostering services are run out of Homes2Inspire Limited and Fostering to Inspire, we continued to grow and develop the services to meet the needs of our customers (Local Authorities) and thereby improve the outcomes for the children and young people we look after.

Our principal activities are the provision of residential care for looked after children within our Ofsted registered children’s homes, the majority of which are in the East Midlands. We currently have 35 Ofsted registered homes which can look after up to 129 children and young people.

We also have a contract to manage Trevone House: 19 flats delivering leaving care services by providing 24-hour support, advice and guidance for some of the most vulnerable young people in making the transition from care to independent living.

Our customers are Local Authorities who place children either through block contract arrangements, framework agreements or on a spot purchase basis.

The direction of travel for our key customers continues to be one of developing children’s homes within their own County boundaries for their exclusive use on a block contract, this meets their ‘sufficiency and efficiency’ strategy and more importantly enables the necessary ‘wrap around’ services, for example education and Child and Adolescent Mental Health Services to be accessible and available to children and young people.

During the year we agreed a strategic partnership with Somerset Council to develop up to 10 registered children’s homes, 20 high needs foster placements and other therapeutic services. Going forward we would like to continue to develop ‘Strategic Partnerships’ with Local Authorities to move away from Commissioner / Provider contract approach.

In partnership with key customers, we have looked at ways to develop our services to meet the complex needs of children and young people stepping down from Tier 4 mental health provision or from Local Authority secure accommodation on welfare grounds who require residential care. This provides care for those who are hardest to place due to ‘matching’ and require high levels of support and care.

To meet these challenges, we have continued to develop solo and dual placement homes linked to five-bed homes or 2x2-dual bed homes in close proximity to each other.

All homes have been inspected by Ofsted and 80% are ‘Good’ or ‘Outstanding’. Homes2Inspire has been recognised by Ofsted as being in the top 20 of all Care Home providers.

‘Fostering to Inspire’, our independent fostering agency, based in Wakefield received an Ofsted ‘Good’ on its first inspection and continues to grow incrementally year on year. The creative work being undertaken will enable further opportunities to provide an integrated service between fostering and residential care to be developed.

Over the last year we have opened a further seven homes and our growth plan continues in light of an increasing demand for our services. We have a further eight homes under development, some of which will be properties owned by the Local Authorities.

The coming year will continue to present ongoing challenges but also significant opportunities as we strive to meet the needs of our customers and commissioners by developing innovative solutions that provide value for money while authorities continue to review the services they deliver that provide positive outcomes for children and young people.

Education

Shaw Education Trust

Shaw Education Trust (SET) is a Multi Academy Trust, based in North-West England and the Midlands. As at 31 August 2022 SET operated 27 academies, one Specialist Independent College, two teaching schools and a SCITT. These cater for 12,111 pupils aged 2–25 across Staffordshire, Birmingham, Wigan, Wolverhampton, Bury, Stoke-on-Trent, Halton and Derby.

The total comprises 11 specialist provisions (including an Independent Specialist College, Newfriars which caters for young adult learners aged 16-25 years old); seven primary academies and nine secondary academies.

During the year a further two primary schools joined SET and were converted to academies. These are detailed in note 25.

The two mainstream primary schools which joined in the year were Moorhill Primary and Redhill Primary, both on 1 April 2022.

In addition, SET was awarded a Free School (Specialist) in Bury, which is due to open in September 2023.

We work our hardest to improve, accelerate and enable ambitious life goals for all young people. Our 2,000 staff help the pupils realise their potential and achieve their ambitions at academies in all key stages, from Foundation to Key Stage 5 in both special and mainstream education.

Although the impact of Covid-19 had been a major event and posed many challenges to SET, the impact had been well mitigated and has had no major detrimental impact on the finances of the Trust during the year.

Seven Ofsted inspection visits took place during the year, with academies inspected retaining or improving their Ofsted grade. At the year-end 89% of all academies were good or outstanding, including 90% of primary and 81% of secondary.

SETs business plan includes a detailed strategy for further growth from a mid-sized multi academy trust to a large and leading provider of education across several geographical footprints. To include free school applications and maintain school conversions. The priority remains to recruit schools from all sectors, secondary, primary as well as special schools who align with our vison, values and norms. We continue to drive school improvement using a multi-faceted and evolutionary approach with our longerterm priority focusing on reducing the learning disadvantaged gap.

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Children’s Services

Children and Young People’s Services delivers a balanced portfolio of contracts commissioned by local/combined authorities, devolved administrations and schools/colleges to deliver statutory services with a focus on interventions that support the most vulnerable into sustainable learning/work/self-employment.

Services run across the age range of 5 -24, with a focus on 11- to 18-year-olds. Contract base is concentrated in London, Gloucestershire, West Midlands, Yorkshire, and Wales. Contracts fall under 9 categories: careers guidance, NEET/ targeted support, management information, Supported internships, youth work, youth justice, coaching, self-employment/enterprise and employability.

Children and Young People’s Services delivered 215,000 interventions (face to face, virtual, one to one, small and large group during the period with 160,000 of these focused on young people from vulnerable groups.

100% of our 17 Targeted NEET contracts were placed in the top two DfE quintiles i.e., the top 60 performing Local Authorities in terms of their statutory duties related to participation in learning, numbers who are NEET or whose destination is unknown. Our London contracts remain the highest performing in terms of NEET and unknown and were all ranked in quintile 1.

There is a growing group of young people choosing employment over learning because of the cost of living and an increased number of post pandemic young people home educated or who disengaged prematurely from post 16 provision. We have collaborated with local authorities to create new solutions to support these young people and their families.

More than 200 schools, colleges, and alternative provision from across the Midlands, Yorkshire, Gloucestershire and London commissioned us to provide statutory and Gatsby Benchmark compliant careers guidance that is independent of the institution.

Our Supported Internship Programme for young people aged 16-24 in receipt of an Education Health Care Plan continued to grow with new sites at Transport for London and

Reading. 70% of our graduates have progressed into paid employment with a further 20% moving into education, training or voluntary work.

The GLA match funded programme Spark Change supported 1,771 16-24-year olds ‘entrenched and highly complex’ NEET in Brent, Bexley, Hackney, Harrow and Havering with 65% progressing into a positive outcome. The programme uses resilience mentoring, cognitive behavioural coaching and 13 weeks work placements for neurodiverse clients who are overrepresented in NEET groups.

We are contracted to run GLA funded resilience mentoring programmes for young carers, those known to youth justice, care experienced and those with SEND across 25 London boroughs. We have supported 2,500 young people for 15 months with 90% remaining in learning.

We continue to run a successful Youth Support Team across Gloucestershire with the focus on integrated management, delivery, and solutions for young people. Part of the contract includes running the only outsourced Youth Offending Service in England alongside the Youth Service, statutory NEET Team, Health, and packages of support for those young people who go missing from Local Authority care. To support families cope better with the cost of living crisis, we delivered hot meals and wrap around activities to 27,000 families in Gloucestershire through our Healthy Holidays programme.

We are commissioned by the Welsh Government to run the Big Ideas Wales programme which promotes entrepreneurship from Key Stage 1 to postgraduate and provides a small business set-up service for 16-24 year olds. This year, we have engaged 55,000 young people in entrepreneurship and supported over 300 to set up their own business.

Our growth plans for the next five years focus on contract renewals, increasing market share in existing sectors, building on existing and identifying new strategic partnerships with Local Authorities, and modelling new services and products with colleagues across The Shaw Trust Group to fulfil the Child to Career objectives.

Optimus

Optimus Education is an established provider of professional development support and school improvement information for schools, academies, and other educational institutions. We give teachers an opportunity for continuing professional development and offer careers and skills advice and guidance for young people.

We work with over 5,500 schools per year, in the UK and internationally across all phases of education. By doing so we support teachers to improve and maximise the life chances of 1.7m students and young people.

Conferences and events remained one of the largest revenue streams, which, despite being hit by the Covid-19 pandemic, showed a recovery during the year, and we continue with a hybrid mix of face-to-face as well as digital delivery. The Awards business continues to grow with over 1,100 schools signing up towards the Wellbeing Award, the school impact awards launching in 2022. Membership levels have remained in line with budget.

We continue to see organic growth in our key markets as well as through strategic partnerships both in the UK and overseas.

Learning and Skills

The Learning and Skills division continued the delivery of a range of skills and training. These included apprenticeships, traineeships, supported interns, adult learning programmes and Advanced Learner Loans, skills support for the employed and unemployed, Big Lottery which provides employment support and confidence building for vulnerable residents in Stoke. We deliver ex-offender rehabilitation and business start-up programmes for the unemployed as well as welfare to work.

Within the Innovation division, staff bid for and administered multimillion Euro grant funded bids from Horizon 2020 and Innovate UK instruments to support the development of services and products to improve society for the benefit of all residents. This involved supporting commercial clients in consortia across Europe to win innovation and research funding from the European Union and Innovate (EU) UK.

We supported 104,000 people to receive careers information, advice and guidance and helped

27,000 people of all different attainment levels to progress and gain qualifications through Apprenticeships, Higher Apprenticeships and Traineeships, and with qualifications to support those who want to progress within work, or those who want to enter work in addition to Advanced Learner Loans.

Of these, 85% of those learners progressed into a range of employment, education and Apprenticeship opportunities within the Construction, Leadership and Management, Education and Training, Health and Social Care, and Digital and IT sectors.

Revenue streams in the year were from Government Departments including: The Education Skills Funding Agency (EFSA); the European Social Fund (ESF); the Department for Work and Pensions (DWP); the Ministry of Justice (MoJ); the EU and Local Authorities; Horizon 2021 and Innovate UK along with the Big Lottery contracts.

Revenue in the year decreased from the prior year mainly through some of the Government funded contracts coming to an end during the financial year and the significant impact of Covid-19 through the trading year. The Trust has continued to establish a strong track record and reputation of high-quality delivery within Government Commissioners, key stakeholders, and employers.

The focus during the year has been to continue to invest in support services, embedding new technologies that offer efficient scaling to the business in a safe and compliant manner, delivering quality outcomes for our clients from our funding contracts, as well as developing key strategic alliances and collaborations to support business growth for the future.

The impact of the pandemic has resulted in an increased investment to further increase physical support. We have opened new face to face delivery sites to support the most vulnerable in Birmingham and London and have repurposed the North East site to support construction. We have strengthened digital delivery to include MS educator and have invested heavily in staff CPD to ensure staff are equipped to up to date skills post pandemic to enhance teaching, learning and assessment.

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An inability to claim all income due from contracts as clients were not able to fully undertake and complete their learning programmes was due to delays from external stakeholders in agreeing the solution to support clients on programmes. There was a continued lag from external stakeholders in agreeing a solution to support clients on programmes, and we worked with them to reengage as many learners as possible in the 2021/22 year once out of pandemic restrictions.

In addition to these factors the decision was taken to further invest in additional resource to support delivery of apprenticeships to those who may have required a break in learning due to the pandemic.

Further investment was put in place in 2022 to ensure that Learning and Skills remained a high-quality provider. We have recently been re-inspected under the new Education Inspection Framework (EIF) and gained “Good” provider status which is a huge achievement post pandemic and secures bids and contracts for the future.

Employment

The employability division consists of a number of contracted services focused on supporting unemployed adults to secure sustainable good work. These contracts require the delivery of a range of services over varying lengths of time to overcome participants’ barriers to employment. The support offered within these contracts includes: diagnostic assessment of needs; careers advice; skills development; support to address barriers such as housing or debt; job matching and in-work support. For some contracts we also deliver integrated health and wellbeing support to overcome barriers preventing people entering or sustaining employment.

The Shaw Trust delivers its contracts through a mixture of direct service delivery and a diverse supply chain. Supply chain partners either work as an end-to-end provider within a set geographical area or as a specialist interventions provider. The supply chain compliments and expands our own services delivery.

We are the largest providers of the Department for Work and Pensions (DWP) Work and Health Programme (WHP) running two significant

contracts across Central England and East of England / Kent. We also run the devolved WHP in West London on behalf of the West London Alliance. With these contracts we hold a 30% market share of this programme. WHP is an employment support programme aimed at unemployed people with health conditions or disabilities to enter sustainable employment. WHP offers up to 15 months of support to gain employment and a further period of continued support once a participant has entered a job.

The WHP contracts delivered by The Shaw Trust saw 16,417 unemployed participants start on the programme in the year to August 2022. These participants were provided with a tailored support package to move them towards employment. In the same period, we helped 7,719 participants enter paid employment as a result of this support.

As part of the Government’s “Plan for Jobs” in response to the pandemic the DWP awarded The Shaw Trust an expansion to the Work and Health Programme with the introduction of “Job Entry: Targeted Support” (JETS). These are significant contract expansions in Central England, East of England / Kent and in West London.

The JETS programme helps people who have been unemployed and in receipt of benefits for at least 13 weeks to find sustained work. JETS provides advice, guidance and job search support via telephone and our digital delivery platform. In the financial year to August 2022 The Shaw Trust has seen 46,618 people start on the JETS scheme and we have already helped 22,161 people back into work. The JETS program will come to an end in mid-2023.

The Trust also delivers the Intensive Personalised Employment Support (IPES) contracts on behalf of DWP across Central England, East of England / Kent and the whole of London. These contracts offer targeted support to unemployed people with disabilities and complex needs. IPES offers one-to-one support from a dedicated advisor for up to 15 months to secure employment. Once in employment, participants continue to receive dedicated support for a further six months.

The level of individual support offered on this contract is significantly higher than other programmes due to the additional support needs of some participants. During the last

financial year, we have supported 1,178 new participants. Due to the success of this programme and the demand for the additional support, DWP agreed to increase the size of the programme by 25%.

As well as supporting unemployed people into jobs we also provide support to people wishing to become self-employed and start their own business. This service is provided through the New Enterprise Allowance scheme commissioned by the DWP. The Shaw Trust business advisors have supported over 5,000 people to become self-employed.

We continue to provide our Restart provision in Birmingham as one of Serco’s selected delivery partners. Restart is another element of the governments “Plan for Jobs” in response to the impact of the Covid-19 pandemic.

Community Health and Wellbeing

The Shaw Trust’s Community Health and Wellbeing division focuses on enabling the better management of mental and physical health conditions using the biopsychosocial model of support. This approach enables improvement in people’s wellbeing and in turn being better able to cope with the challenges they face at home, in work and in their communities. The expansion of the division has continued in 2021/22 with the increasing demand seen as a result of the Covid pandemic.

This year we supported 13,884 participants and trained 1,047 people through our Health and Wellbeing trainers in better mental health and resilience. We also supported 24,944 calls through our sub-contractor delivering a mental health crisis phone line in Kent.

During the year we launched five new services:

• Shaw Trust Counselling Service to employability participants.

• Shaw Trust Health Assessment service to Work and Health participants.

• Shaw Trust Training service to Work & Health participants.

• Connect for Health service in Suffolk.

• Somerset Family Solutions service in Somerset.

And achieved the following extensions:

• Kent Individual Placement and Support (IPS) service.

• Work to Recovery IPS service in Birmingham.

Justice

Work in the Justice sector is designed to enable the people we support to positively contribute to society and break the cycle of reoffending. Education, skills, employment, wellbeing and ongoing support, both within institutions and beyond the gate are all important elements of the rehabilitation process.

The Trust operates seven of the 18 CFO3 contracts for Her Majesty’s Prison and Probation Service. The programme is co-funded by the European Social Fund and is designed to improve social inclusion amongst offenders and exoffenders, who are considered the hardest to help in the justice system. We do this by helping them get ready for life after prison, turn their back on crime, train and find a job. Many of those we support have multiple and complex needs.

Through these we have helped over 7,011 new offenders, providing specific support, skills, and training to clients in prisons and the community, resulting in over 2,761 accreditations and more than 690 jobs.

In addition to the CFO3 programme, we also operate three CFO Activity Hubs contracts, providing seven dedicated offender facing Hubs, which the commissioner described as ‘the perfect translation of their vision for the programme’. The Hubs provide an opportunity for offenders to gain support and interact with role models and with peers, who are at a similar post-release stage, enabling them to develop plans and ultimately be supported into education, training and employment. Support is provided through a range of activities based around: Human and Citizenship (developing selfworth); Community and Social (improving skills and resilience) and Interventions and Services (reducing recidivism agenda). During the period, we have supported over 1,418 new offenders; 1,426 Human / Citizenship interventions have been delivered, 2,434 community and social interventions and 72 interventions and services to reduce recidivism.

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We continue to perform well on our Dynamic Purchasing System (DPS) Information Advice and Guidance (IAG) contracts adding more to our portfolio in the period, including a number in the High Security Estate. In addition, our HMYOI Feltham Education contract provides education, training, careers advice and resettlement support for males ranging from 15-18 years old, delivered on-site within Feltham Young Offenders Institution. An Ofsted revisit during the period reported ‘Good’ progress against actions, spoke positively of the education management team and stated that our provision at Feltham YOI is on the right trajectory. During the year we worked with more than 300 learners at Feltham, who collectively achieved more than 1,500 accredited qualifications with a high proportion of learners on long term sentences achieving GCSEs for the first time. Enrichment activities with a focus on personal development and social skills were delivered throughout the year, a highlight being a 90% participation rate in our range of Black History Month activities.

Retail and Enterprise

The Retail and Enterprise division comprises four distinct sections:

1. Enterprises: provide opportunities for adults with learning disabilities to work within nature and ecology parks across the UK; funded by Local Authorities. These include: Doncaster Industries; a plastic extrusion business, Palmer and Billing Garden Centres which provide real world work experience and vocational training for learning disabled adults, and Forth Sector Laundry: offering high profile charitable and employability services in Scotland for those with learning difficulties. Through these services we delivered support for over 300 vulnerable adults and young people.

2. Accessibility Services: works with companies to assess the accessibility of their online platforms, employing adults with a range of impairments, with the aim of improving digital access for people with disabilities, working with clients including the NHS, McDonalds and EasyJet.

3. The Disabled Living Foundation (DLF) provides impartial advice and guidance on aids and solutions for independent living

alongside training to the health and social care sector. We offer a programme of CPD accredited courses, suitable for those working with disabled and older people, to ensure that quality person centred care is delivered within best practice guidelines. The DLF is one of the founding members of the Trusted Assessor Framework. During the year we delivered training to over 151 organisations, hosted information on over 10,000 products and worked with over 1,000 suppliers via the Living Made Easy website.

1. Our network of 24 charity retail shops saw an increase in demand for second-hand fashion throughout 2021/22. This was not just down to the rising cost of living but was also driven by shoppers’ concerns about sustainability. In addition we supported all of the local communities that our shops are located in with volunteers able to support and upskill themselves and supported over 250 volunteers in the year.

Financial Review

The Shaw Trust consolidated financial statements for 2021/22 are presented in the following pages.

The pandemic had a significant impact on the operations of the Trust. Finances remained resilient throughout this period thanks to growth of several of our core contracts, a change in delivery methodology and careful management of liquidity.

Having adapted quickly to these challenges in 2020/21, the current year has seen a focus on return to more normal operational conditions and working practices in the Trust’s services and academies.

Through adopting new ways of working in response to the pandemic the Trust continued to deliver on its many different contracts. As a result of careful financial management and measured growth, the Trust finished the year in a strong financial position and on track with its clear strategy for the future.

The Trust continues to grow along its key operational businesses of Employability, Children’s Services and Education, Learning and

Skills, along with continued expansion of its Multi Academy Trust. Strategically this growth is important, enabling the Trust to expand in new and existing markets. It has also facilitated opportunities to optimise the cost base across the Group by maximising the opportunities to integrate property, systems, processes and people, particularly within the areas of central support services.

More recently the organisation has seen a period of integration and consolidation, identifying efficiencies in the business, focusing on its core activities and disposing of non-core assets.

The Trust is progressing in line with its 10-year strategy and growth plan, in anticipation of future opportunities within a rapidly shifting public sector marketplace.

Financial performance, both current and projected, is closely monitored against a key set of KPIs measuring operational performance, liquidity and solvency.

Although the worst of the Covid-19 pandemic is behind us the knock-on impacts remain. Economic conditions in the UK market remain challenging with significantly higher inflation than forecast, driven by energy and supply chain issues combined with an expectation of rising interest rates. These factors, exacerbated by global political uncertainty, are putting increasing pressure on household finances as well as impacting Government and Local Authority budgets.

The impact of cost of living during the year has been significant, putting pressure on contracts as well as creating challenges with recruitment. Extensive risk assessment and modelling has been undertaken to assess the impact of the economic headwinds, in particular inflation, on the Trust’s business plan and contingency planning and required mitigation actions taken.

Where possible we have sought to minimise our operating costs, by reducing office costs and overhead expenditure during and post the pandemic. The underlying business remains robust and the Trust has managed to deliver in line with its business plan during the year. We are confident that we will continue to manage the Trust through the ongoing impact of this crisis and the current economic challenges and that

sufficient financial and operational resources are available to operate through any further extended period of disruption.

The Shaw Trust continues to operate two of the Governments six flagship employability contracts, and a significant boost to income was provided with the award of the (DWP) Work and Health Programme – Job Entry: Targeted Support (JETS) contract variation in Autumn 2020, which has now been extended a further year.

Net Movement in Funds

The net movement of funds for the group is £118.6m as summarised below:

----- Start of picture text -----
£m
7.4
The Shaw Trust Group operations
(excluding Shaw Education Trust)
Deferred tax reversal (18.4)
Shaw Education Trust (0.8)
Goodwill amortisation and
(5.7)
impairment
Actuarial gains and Net finance
return on defined benefit pension 136.1
scheme
Net movement in funds 118.6
----- End of picture text -----

The net movement in funds for Shaw Education Trust includes the value of assets acquired at the date that new schools joined the Shaw Education Trust, amounting to £7.4m (further details are included in note 25 – Business Combinations).

Net Income and Expenditure

The increase in revenue generated reflects growth in existing and new contracts, particularly in the Employability division as well as an increase in the number of academies operating within Shaw Education Trust. The incoming resources from the activity of the Group increased by £32.5m to £296m. The majority of income was through contracts with

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central and local Government increasing with the full year impact of the JETS contract and expansion of children’s homes in Homes2Inspire (H2I). £106.7m of income was generated by Shaw Education Trust, of which the addition of academies during the year added £5.7m to income (prior year £19.4m).

The network of 24 shops generated income of £3.2m, a slight increase over the previous year, which was more impacted by the pandemic as shops were closed for extended periods of time in line with guidelines.

No Covid Government grant was claimed during the year, with prior year’s reliefs being £2.4m.

During 2021/22 our charitable expenditure totalled £313.1m, up from £234.9m in 2020/2021. The increase reflected growth in income and academies as described above. Expenditure included £5.7m of goodwill (2021: £7.1m) and additionally, the reversal of a deferred tax asset of £18.4m during the year, a direct result of the significant reduction in pension liability.

Operational performance for the Group prior to these one-off adjustments and actuarial movements on pensions, was a surplus of £6.6m, illustrating continued financial improvement with increased efficiency and contract performance.

Overall group net movement on funds has increased significantly, with the actuarial gains on defined pension schemes significantly increasing net reserves, showing a surplus of £118.6m during the year, an increase of £111.8m over the prior year (2021: net surplus of £6.8m).

Balance Sheet

Overall cash, deposits and investments were £55.6m at 31 August 2022, remaining stable to the prior year, and reflects Shaw Trust continuing its careful management of working capital and the build-up of a strategic reserve. In addition, a number of freehold properties were purchased and converted into children’s homes. During the year £5m of our cash deposits were placed with an investment manager to be held as a strategic reserve.

At the end of the financial year overall consolidated funds stood at £209.4m compared to £116.8m in the prior year. The significant

increase was largely due to a reduction in net pension liabilities, but also reflected a combination of a number of factors: transfer in of academies, the performance in the year, a revaluation reserve and goodwill amortisation. £191.5m of these reserves were restricted, being the net assets of Shaw Education Trust.

An increase of £11.8m in tangible fixed assets to £199.3m reflected additional schools acquired by SET and several properties purchased in Homes2Inspire and converted into children’s homes.

Working capital remained positive and in line with our key KPIs, at £25.8m at year end.

The significant decrease in longer-term liabilities predominantly relate to the decrease in pension provisions, and have decreased to £14.6m, largely due to changes in actuarial assumptions.

Within the cash flow, capital expenditure incurred of £10.1m (2021: £5.8m) was primarily in respect of the costs of building work and improvements undertaken at the Shaw Education Trust’s academies, largely funded by successful grant applications, and increases in assets for Homes2Inspire.

Investment powers, policy and performance

An investment manager firm; Brewin Dolphin was appointed during the year following a tender process. The Trust’s liquid assets are held as cash and readily realisable investments and cover a strategic reserve and sufficient cash for working capital purposes, and is in line with the reserves policy.

Our investment managers are selected on the basis of reputation and adherence to environment, social and governance issues. The investments are governed by investment policies which are reviewed by Trustees and the portfolio is designed to balance the objective of maximising investment returns against the risk and liquidity of the investments. Investment performance is monitored and reviewed against a number of set benchmarks by the Finance Committee.

The Trust’s long-term policy for its reserves is to balance the security of its funds available for investment with the need for liquidity to meet its obligations as they fall due, while obtaining the best yield that can be generated given the Trust’s risk appetite.

Reserves policy The Trust’s free reserves are held to manage the fnancial and operational risks to which the charity is exposed delivering its activities. The Trustees are jointly and severally responsible for ensuring the charity and legal entities are a going concern and in a fnancial position to provide reliable services for our benefciaries, to absorb unforeseen setbacks in the event of a signifcant fnancial downturn and to take advantage of opportunities that are in line with our charitable mission. The reserves policy is reviewed annually by the Trustees to take account of changes to the environment in which the Trust operates, and any other internal or external risk factors that might impact on the level of reserves required. The reserves policy is based on the level of free reserves. The Trustees have considered whether the defnition of free reserves, being the total unrestricted funds less any designated funds, revaluation reserves and pension scheme surpluses or defcits, is appropriate due to the signifcant pension defcit arising, predominantly from the acquisition of Prospects, although they are now in surplus, only SET remains in defcit. The conclusion of the Trustees was that there was not a signifcant risk that the pension liability would crystallise in the short to medium term, and that the Trust can meet the required projected further income without signifcantly impacting the ongoing business. In addition, due to the relative stability of income through the long-term nature of contracts undertaken, any reduction in contract revenues can be reasonably foreseen and actions taken before there is a signifcant impact on the Trust’s reserves. The Trust therefore continues to calculate its ‘free’ reserves without setting aside designated reserves to cover its pension liabilities.		As of 31 August 2022, the Trust had free reserves of £8.3m (31 August 2021: £17.5 per below table).	As of 31 August 2022, the Trust had free reserves of £8.3m (31 August 2021: £17.5 per below table).	As of 31 August 2022, the Trust had free reserves of £8.3m (31 August 2021: £17.5 per below table).
			At 31 Aug 2022 £m	At 31 Aug 2021 £m
		Total Reserves	209.4	89.7
		Less: Restricted funds	(191.5)	(129.4)
		Less: Intangible assets	(1.8)	(7.4)
		Less: Tangible assets	(10.9)	(5.8)
		Less: Designated funds	(2.7)	(2.2)
		Add: Long term liabilities and provisions	5.8	1.8
		Add: Pension liability (unrestricted element)	-	70.8
		Free Reserves	8.3	17.5
		A number of factors have impacted the level of free reserves during the year. A reversal of a deferred tax asset of £18m was a consequence of a signifcant decrease in pension liabilities. This was countered to some extent by a favourable fnancial performance in the year. In addition, some of the Trust’s free reserves were invested into freehold property to provide children’s homes. In addition to a suggested level of positive free reserves, the Trust’s policy stipulates a minimum level of cash holding requirement of £15m to meet the following scenarios, including: – A delay in collection of receipts. – Exceptional payments of costs. – A signifcant fnancial impact or loss of a major contract. The policy was adhered to during the year.

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Detailed review of the risk and stress testing has been undertaken to assess the risk of a significant contract loss and the mitigation steps available to management. The Trustees and Executive Team have considered the level of free reserves and minimum cash reserve requirement and consider it appropriate given the current resources and future activities of the Trust.

Pension Schemes

The principal pension scheme available to employees of Shaw Trust is a defined contribution scheme, administered by Standard Life. Contributions to the plan during the year totalled £1.53m (2021: £1.08m).

The Trust also participates in several active final salary pension schemes through its Multi Academy Trust subsidiary. The two principal pension schemes are the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and a number of Local Government Pension Schemes (LGPS) for nonteaching staff. Both are multi-employer defined benefit schemes.

In addition, the Group retains a funding obligation to several smaller final salary schemes, all of which are closed to new entrants. These are detailed in note 24 - Pension Commitments.

The final salary schemes remain subject to a formal triennial funding valuation, with the most recent completed being as at 31 March 2022. This showed a funding surplus of £9.6m, and in the majority of schemes future contributions were nil or had reduced.

Separate annual valuations of the schemes are carried out in accordance with ‘FRS 102: Employee Benefits’ in which different funding assumptions are applied. The FRS 102 valuation of the Trust’s pension schemes at 31 August 2022 showed an overall funding deficit of £14.6m (2020/21 £139.5m). The decrease reflects significant movements in actuarial assumptions, particularly discount rates since the prior year-end.

In accordance with FRS 102, the surplus on individual schemes is not recognised as an asset, on the basis that future economic benefits are not deemed available to the Group.

The Trust monitors the size of the pension deficit and feels that there is sufficient income and cash flow in future years to service the requirement of these schemes. In addition, a significant review of pension exposure and risk is ongoing and continued during the year.

Post year-end the Trust exercised its agreement to exit the London Pensions Fund Authority scheme at the point it became fully funded. This significant final salary scheme had been closed to new and existing members following a detailed review and consultation with members during 2020 and at the time a long-term repayment plan agreed with the provider. This transaction had no detriment to benefits for scheme members and significantly reduced the balance sheet risk and exposure to valuation fluctuations arising from future changes of actuarial assumptions.

Streamlined Energy and Carbon Reporting

Greenhouse Gas (GHG) Emissions

In line with the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard, The Shaw Trust Limited (SHA) continues to be engaged in a process aimed at reducing our energy and greenhouse gas emissions.

The Shaw Trust currently maintain both scope one and two emissions, which are generated from our premises (offices, accommodation, and schools), operational processes and transport, respectively. We maintain transport emissions from leased company cars and “grey fleet” (personal cars used for business purposes, where staff mileage has been reimbursed).

The Shaw Trust previously devised a strategy to reduce our carbon footprint by:

• Encouraging employees to purchase renewable technology cars i.e., hybrids.

• Purchasing energy efficient equipment where appropriate in our premises.

• Replacing HVAC systems with energy-efficient equipment where possible.

• Adopting behavioural change measures where possible.

We continue to take this approach year on year. We have a longstanding commitment to tackling climate change. Our calculated carbon footprint for our current financial year is 6,692.02 tCO2e, whilst energy consumption was 33,555,959 kWh (33,555.96 MWh).

Methodology

We have reported all emission sources under the Companies Act 2006 (Strategic Report and Director’s Reports) Regulations 2013 as required. We have calculated and reported our emissions in line with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government’s GHG Conversion Factors for Company Reporting 2022 (reference “Introduction guidance”).

The reporting period is the financial year 2021/22, the same as that covered by the Annual Report and Financial Statements. The boundaries of the GHG inventory are defined using the operational control approach. In general, the emissions reported are the same as those which would be reported based on a financial control boundary.

2021 / 2022 Emissions

Scope 1 (natural gas) Tonnes CO2 equivalent (tCO2e) 4,819.92

Scope 1 (company vehicles) Tonnes CO2 equivalent (tCO2e) 192.58

Scope 2 (electricity) Tonnes CO2 equivalent (tCO2e) 1,303.71

Scope 3 (transport) Tonnes CO2 equivalent (tCO2e) 348.94

Scope 3 (electricity transmission and distribution) Tonnes CO2 equivalent (tCO2e) 26.87

Total 6,692.02 tCO2e

Scopes one, two and three carbon intensity metrics = 1.228 tCO2e based on our average number of employees (5,448) during the financial year.

Our emissions have reduced slightly since our last report, by 9%.

Efficiency Measures Taken

1. Replaced aging premises equipment with energy-efficient products.

2. Expanded video conferencing and online meetings (as opposed to face-to-face meetings).

3. Upgraded lighting portfolio to LEDs where possible.

Objectives for 2022 / 2023

1. Reduce our baseline electricity and gas consumption year on year.

2. Continual review of existing equipment and company policies.

3. Reviewing supply contracts to determine feasibility of renewable energy.

4. Prepare for our Energy Savings Opportunity Scheme (ESOS) phase 3 compliance.

5. Implementation of carbon reduction towards net zero.

6. Continue with our energy-savings programme.

The Trust will report on progress within our next set of financial accounts.

Statement on going concern

The Trust prepares a detailed annual budget and five-year business plan which indicates a positive cash position and operational profitability for the duration of the plan. This plan has been approved by the Trustees and the Trust’s principal lenders.

Management continues to closely monitor significant risks, and modelling of sensitivities have indicated the Trust has sufficient liquid resources to meet its obligations as they fall due.

The Trust has produced a comprehensive risk assessment framework and monitors and reports on this on a quarterly basis. It continues to drive for performance, carefully manages costs and looks for further opportunities to develop. It seeks to mitigate any ongoing risk by ensuring that it continues to be lean and fit for purpose,

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responds to the changing environments and markets in which it operates and continues to engage with commissioners and clients.

The Trustees have reviewed the charity’s forecasts, sensitivity analysis and projections and its reserves, and the systems of financial control and risk management. As a result of this review, the Trustees have a reasonable expectation that the charity can manage these risks and has adequate resources to continue in operation for the foreseeable future, being a period of at least 12 months from the approval of the financial statements. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Principal Risks and uncertainties

Risks and uncertainties are referred to in depth in the Risk Management Framework below.

Risk Management Framework

The Trust’s risk appetite is set annually by the Board of Trustees with the goal of aligning risk-taking with the statutory requirements, strategic business objectives and capital planning. The Board of Trustees and the Group Chief Executive Officer (CEO) have key roles in the implementation of the Trust’s risk appetite by steering the balanced portfolio, geographical operating areas and markets, and funding and liquidity management.

The purpose of the Risk Assurance Statement (RAS) is to state clearly the general principles for the Trust’s risk-taking, to raise risk awareness across the organisation, and to guide the staff regarding accepted and unacceptable behaviour. The RAS is implemented through the Trust’s operational policies and procedures, monitoring metrics, limit system and internal controls.

The Trust is subject to national supervision and prudential regulations, including contractual obligations.

The Trust’s risk management system and procedures are reviewed and refined on an ongoing basis in order to comply with what the Trust identifies as the relevant standards, recommendations and best practices in the sectors operated in. The objectives of the RAS are:

• To provide a clear articulation of the Trust’s risk-taking, risk mitigation and risk avoidance, and to define the risk-taking at the aggregate level.

• To create a foundation for effective communication of risk among internal and external stakeholders.

• To increase understanding of the Trust’s material risk exposures and raise risk awareness across the organisation.

• To positively impact the defined risk culture of the Trust.

• To support the Board of Trustees and the senior management in planning, formulating and executing strategic business decisions to achieve the long-term targets of the Trust.

• To provide means for the Board of Trustees and senior management to engage in discussions on risk-taking, risk management, and business strategy, and their interlinkages.

• To provide the tools for the Board of Trustees and senior management to continuously monitor and align the Trust’s actual risk profile with the risk appetite.

Trustees are responsible for setting the tone and influencing the culture of risk management within the Trust, including the attitude to risk. Through the Executive Team and Audit and Risk Committee, which consists of Trustees with a financial and risk management background, Trustees discharge their responsibilities toward risk management by:

– The adoption of a range of policies and procedures to enable effective risk management including a risk management policy, an anti-fraud policy, a whistleblowing policy and a register of interests’ policy.

• The maintenance of a corporate risk register, which is used to monitor the risk environment of the Trust and to inform audit plans.

– The establishment and maintenance of the ‘three lines of defence’ model of internal control:

• Line One : Management controls to prevent, detect and respond to exposure to risk. These include organisational structures that enable segregation of duties, the implementation of security protocols in respect of assets and information, pre-employment checks and ongoing training, supplemented by management supervision and checking arrangements.

• Line Two : Risk management through the development, implementation, testing and maintenance of an effective control and governance environment. In addition, an internal Commercial Assurance Team provides assurance in respect of the quality of service provision and compliance with legislation, standards and contractual requirements.

The Trust’s Line Two reports into senior management and the Trustee Board, through the Audit and Risk Committee; and

• Line Three: Internal Audit, currently performed by an outsourced provider. Reporting primarily to the Audit and Risk Committee, the internal auditors provide assurance over the effectiveness of corporate governance and the overall control environment including Line Two defences. All reports identify areas of strength and good practice along with areas for improvement. In the case of the latter the Audit and Risk Committee monitors a timebased log of improvement actions, agreed by the management and the auditors, to ensure that they are implemented.

The identification, evaluation and monitoring of significant risks is a continuous process. Emerging risks and changes to the risk profile are identified by the Executive Team and reported to the Audit and Risk Committee and main Trustee Board through a Corporate Risk Register.

The Trustee Board reviews new and existing risks, challenges risk ratings and assesses the effectiveness of mitigating actions and controls in the context of its risk appetite.

Principal Risks and Uncertainties

The assessment of risk is linked to The Shaw Trust strategy and the following have been identified as key strategic risks and the Trust is taking appropriate steps to monitor and mitigate them:

• Inadequate organisational and operational robustness and resilience undermined by inadequate plans, succession and supersession arrangements.

• Inadequate corporate financial robustness and resilience undermined by inadequate reserves.

• Scale, pace and complexity of growth overwhelming the Trust’s ability to deliver on strategic objectives or leading to failure.

• Strengthening environmental headwinds individually or in combination impinging on the ability of the Trust to operate profitably.

• Inability to generate sufficient cash or secure necessary growth capital to fund investment in market opportunities and our accelerating growth.

• Cyber Security and Data Protection.

• Failure to deliver carbon neutrality by 2030.

• Loss of market share or strengthened competition resulting in income loss and reduced financial viability.

• Safeguarding, including physical / mental or emotional harm caused to others.

• The inability to provide normal service delivery or deliver to the required educational, pastoral or financial standards.

• Governance Failure.

The Group’s financial risk management objectives and policies are to:

• Build and maintain a strong balance sheet so as to instil confidence of stakeholders and to sustain the future development of the business.

• Build and maintain a strategic reserve to enable the Trust to operate and continue its core activities.

• Invest surplus funds where applicable in order to return a yield consistent with the Group’s risk appetite and ensuring sufficient liquidity to meet obligations as they fall due.

The Trust completed a successful tender for an investment manager during the year and funds transferred.

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Liquidity risk is managed by carefully forecasting and monitoring the short-term and long-term cash flows and ensuring the Trust has sufficient reserves and liquid investments to cover foreseeable requirements.

Credit risk on amounts owed to the Trust by its customers is low, being mostly Government departments and Local Authorities. Credit risk also arises from cash deposits with banks, and only independently rated parties with a minimum rating of ‘A’ are accepted.

Interest rate cash flow control risks are mitigated as the Trust is able to place surplus funds on short term deposits.

The Group has to date financed the majority of its operations through its reserves and has not required significant external funding. Loan balances at 31 August 2022 of £1.3m included the external funding held in Forth Sector.

In addition, a £5m Revolving Credit Facility was agreed with National Westminster Bank during the year. As at the year end this had not yet been drawn down.

The Group had a small foreign exchange risk arising from investments in charities operating in Poland. However, this risk is not material and as such has not been hedged and the investment was disposed of during the year.

While the Group does have significant concentrations of debt due from the UK central and local Government, the risk is not considered to be significant because of the credit rating of the institutions.

Taking all this information together, the the Trustees therefore have a reasonable expectation that the organisation has sufficient resources to continue in operational existence for the foreseeable future and believe that there are no material uncertainties that call into doubt the ability of Shaw Trust and its subsidiaries to continue as a going concern.

Legal Structure and Governance

The company is legally constituted under its Memorandum and Articles of Association dated 3 August 1983 and amendments thereto.

Governance

The Trustees in office during the year, and at the date of signing these financial statements, are set out on page 112. The Trustee Board has overall responsibility for the governance of the Trust which it discharges through three main duties:

1. Ensuring there is a strategy in place; the main strategic goal is to help as many people as possible to adjust to and navigate the complex employability challenges that lie ahead. To achieve this main strategy, Trustees have agreed on different objectives which include organisational growth, maintaining a balanced portfolio of services and programmes that are locally based and nationally scalable, financial and operational stability, compliance and stakeholder’s relationships.

2. Monitoring the implementation of the strategy against agreed plans, ensuring adequate resource is available.

3. Ensuring the Trust complies with all necessary statutory and regulatory obligations.

As part of this, the Trustees ensure that there is a robust system of internal control and risk management, as well as an appropriate reporting and oversight structure to ensure that the senior executives to whom the Trustees have delegated the daily management of the Trust are performing to the standards expected.

The Board meets quarterly and, while the matters discussed at those meetings will vary, the general themes of discussions are:

• Strategy.

• Review of performance.

• Developments in the Trust’s external operating environment; and

• Major internal change programmes.

The following subcommittees of the Board of Trustees discharged specific aspects of their responsibilities:

The Audit and Risk Committee has a key responsibility for financial and corporate governance, including ensuring effective liaison with external audit, considering major findings of internal audit reports and matters of risk management, and receiving updates on the Trust’s strategic risk register.

The HR Committee is responsible for determining the Trust’s overall HR strategy and approving major changes to the Trust’s structure, employees’ terms and conditions and the pay and reward for the senior executives.

The Trust uses external consultants and comparison tools available to set the salary level for its key management.

Salary and benchmarks are reviewed regularly to make sure the Trust can attract and retain the best talent.

The Finance Committee is responsible for the Trust’s financial performance on behalf of the Board to ensure short and long-term viability and ensure finances are aligned with The Shaw Trust’s Strategic Directive.

The Commercial and Performance Committee is responsible for advising the Board in relation to business investment and opportunities for growth (both organic and inorganic) in accordance with the Trust’s strategy, and to oversee the operational performance of The Shaw Trust.

The Trustees have delegated the daily management of the Trust to the Group Chief Executive and the Executive Team. The current Chief Executive, Chris Luck CB MBE, was appointed in May 2019, and joined the Trust after a distinguished career in the armed forces.

The Trust manages its activities through three operational divisions and service delivery within each is managed by dedicated business unit teams.

Operational staff are supported by Finance, People and Performance, Business Development, Information Services and Communications teams.

As part of their succession planning, the Trustees have a system of Trustee evaluation to identify potential gaps in their individual skills and of the Board as a whole. Evaluation is carried out annually by the Trustees. Trustees are recruited in an open process, targeted towards any skills needs identified by the Trustee evaluation process, ensuring that we obtain the right balance of experience and expertise.

New Trustees can be co-opted by the members to fill a vacancy at any time during the period. Co-opted Trustees, if they wish to continue, seek re-election at the first Annual General Meeting after their appointment.

Every new Trustee receives a copy of The Trust’s Memorandum and Articles of Association; a summary of how it operates to achieve its charitable objects, with particular attention to its core areas of operations; a copy of the Trust’s latest reports and financial statements; a copy of the Code of Practice adopted by the Trustees; details of the Trust’s Executive Team and their respective roles, Terms of Reference and reporting lines; details of Board meetings; and the Board papers made available for meetings.

As well as induction, Trustees are able to undertake training in specific areas of the Trust’s operations through visits and presentations.

Disabled employees

The Group is committed to employment policies which follow best practice, based on equal opportunities for all employees, irrespective of age, religion, sex, race, colour, disability, sexuality or marital status. The Group gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. To this end, the Trust was delighted to be awarded Disability Confident Leader Status in 2018.

Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the Group.

If members of staff become disabled the Group continues employment, either in the same or an alternative position, with appropriate retraining being given if necessary.

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Employee involvement

The Group systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests.

Employee involvement in the Group is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the Group plays a major role in maintaining and growing its position.

The Group encourages the involvement of employees through a forum where employees are represented by elected colleagues on a regional basis who meet regularly with the Executive Team.

Directors’ indemnities

As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Company also purchased and maintained throughout the financial year Directors’ and Officers’ liability insurance in respect of itself and its Directors.

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of The Shaw Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulation.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the Trustees must not approve the financial

statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the Group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and then apply them consistently.

• Observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2015).

• Make judgments and estimates that are reasonable and prudent.

• State whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditors

In so far as the Trustees are aware:

• (a) There is no relevant audit information of which the charitable company’s auditor is unaware; and

• (b) The Trustees have taken all the steps that they ought to have taken as a Trustee in order to make them aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

Independent auditors

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission

Section 172(1) Statement

General confirmation of Trustees and Directors’ duties:

The Trust’s Board has a clear framework for determining the matters within its remit and has approved Terms of Reference for the matters delegated to its Committees. Certain financial and strategic thresholds have been determined to identify matters requiring Board consideration and approval.

S172(1) (A) “The likely consequences of any decision in the long term”

The Directors completely understand the importance of Charity and long-term impact of its decision on beneficiaries and communities. The Board has developed proper strategies and process to follow for any decision which can have long term impacts.

S172(1) (B) “The interests of the company’s employees”

The Directors recognise that The Shaw Trust Limited employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the Directors factor the implications of decisions

on employees and the wider workforce, where relevant and feasible.

S172(1) (C) “The need to foster the company’s business relationships with suppliers, customers and others”

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, governments and commissioners. The Shaw Trust Limited seeks the promotion and application of certain general principles in such relationships. The Trust supports the government strategy to support SMEs via doing business with them and paying promptly. The Trust recognises the importance of its supply chain partners to deliver its targets and achieve strategic goals. Certain rules and procedures have been developed to maintain the good relationship with them.

Moreover, the Directors receive information updates on a variety of topics that indicate and inform how these stakeholders have been engaged.

S172(1) (D) “The impact of the company’s operations on the community and the environment”

The Board receives information on these topics to both provide relevant information for specific Board decisions e.g., working from home, green energy and carbon footprint policies.

S172(1) (E) “The desirability of the company maintaining a reputation for high standards of business conduct”

The Board periodically reviews and approves clear frameworks to ensure that its high standards are maintained both within its businesses and the business relationships we maintain. This complements the ways the Board is informed and monitors compliance with relevant governance standards.

Sir Kenneth Olisa, Chairman 11 May 2023

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Independent Auditor’s Report to the Members and the Trustees of The Shaw Trust Limited

Opinion

We have audited the financial statements of The Shaw Trust Limited (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 August 2022 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheets, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• Give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 August 2022 and of the group’s income and expenditure, for the year then ended;

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

In our opinion based on the work undertaken in the course of our audit

• the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report Auditor’s responsibilities for the audit of

• included within the trustees’ report have been the financial statements

• prepared in accordance with applicable legal requirements. We have been appointed as auditor under

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

• Adequate and proper accounting records have not been kept; or

• The financial statements are not in agreement with the accounting records and returns; or

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

• Certain disclosures of trustees’ remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 30 the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error,

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and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Health and safety legislation, Taxation legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of contract income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit and the Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing contract income, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the

Charity Commission, OSCR, Companies House and ESFA, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Julia Poulter Senior Statutory Auditor

For and on behalf of Crowe U.K. LLP Statutory Auditor, London. Dated: 26 May 2023

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The Shaw Trust Limited Group consolidated Statement Of Financial Activities (incorporating income and expenditure account)

----- Start of picture text -----
Year ended Year ended
For the year ended Unrestricted Restricted 31 August 31 August
31 August 2022 Funds Funds 2022 2021
Note £’000 £’000 £’000 £’000
Income and endowments from:
Donations and Legacies 50 4,691 4,741 6,060
Charitable activities 184,360 97,916 282,276 232,782
Other Trading Activities 1a 2,379 777 3,156 2,904
Income on investments, interest 44 - 44 1
and dividends
Covid related grants 4 - 4 2,374
Other Income 5 - 5 1
Net assets taken on with mergers 25 - 5,736 5,736 19,381
and transfers
Incoming resources including share
186,842 109,120 295,962 263,503
of joint ventures
Less share of gross incoming -
(111) (111) (101)
resources of joint ventures
Group incoming resources 1 186,842 109,009 295,851 263,402
Expenditure on:
Raising funds 2 (2,325) - (2,325) (2,385)
Goodwill Impairment 7 - - - (568)
Charitable activities 2 (182,685) (109,743) (292,428) (238,296)
Total resources expended (185,010) (109,743) (294,753) (241,249)
Net income 1,832 (734) 1,098 22,153
Net losses on Fixed Asset
10 (208) - (208) -
investments
Transfers between funds 18 1,404 (1,404) - -
Net Income before tax 3,028 (2,138) 890 22,153
Taxation 21 (18,370) - (18,370) 6,348
Group net income (15,342) (2,138) (17,480) 28,501
Share of net outgoing resources of 9 - (10) (10) 6
joint ventures
Net income before other
(15,342) (2,148) (17,490) 28,507
recognised gains and losses
Loss on sale of subsidiaries (42) - (42) -
Actuarial gains (losses) on defined
benefit pension schemes 24 71,804 64,306 136,110 (21,700)
Net movement in funds 56,420 62,158 118,578 6,807
Revaluation reserve 1,113 - 1,113 -
Fund balances brought forward (39,629) 129,325 89,696 82,889
Fund balances carried forward 17,904 191,483 209,387 89,696
----- End of picture text -----

Group and Company Balance Sheets

(Company Reg. Number: 01744121)

----- Start of picture text -----
as at 31 August 2022 Group Company
2022 2021 2022 2021
Note £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 7 1,756 7,435 240 446
Tangible assets 8 199,326 187,570 4,405 3,466
Investments in subsidiaries 9 - - 21,355 19,355
Investments in financial securities 10 4,823 - 4,823 -
Investments in joint ventures -
investment at cost
Gross assets - 93 - -
Gross liabilities - (41) - -
Net assets 9 - 52 - -
Total fixed assets 205,905 195,057 30,823 23,267
Current assets
Stocks 12 397 426 365 292
Debtors: Due within one year 13 44,369 33,926 36,966 24,618
Debtors: Due over one year 13b 388 18,768 300 300
Cash at bank and in hand 15 50,853 55,031 8,857 10,616
Total current assets 96,007 108,151 46,488 35,826
Creditors - amounts falling due within
16 (71,553) (71,519) (43,747) (32,514)
one year
Net current assets 24,454 36,632 2,741 3,312
Total assets less current liabilities 230,359 231,689 33,564 26,579
Creditors - amounts falling due 16b (1,034) (1,293) - -
after one year
Provision for liabilities and charges 17 (5,347) (1,231) (4,356) (522)
Net assets before pension liability 223,978 229,165 29,208 26,057
Pension liability 24 (14,591) (139,469) - -
Net assets after pension liability 209,387 89,696 29,208 26,057
----- End of picture text -----

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Group statement of cash flows

Group and Company Balance Sheets (continued)

for the year ended 31 August 2022

as at 31 August 2022

as at 31 August 2022
Note	Group Company 2022 £’000 2021 £’000 2022 £’000 2021 £’000
Funds
Designated funds 18	2,666 2,171 2,461 1,966
Revaluation reserve 18	1,113 - - -
General funds 18	14,125 28,959 24,297 20,323
Total unrestricted funds excluding pension liability	17,904 31,130 26,758 22,289
Pension liability	- (70,759) - -
Total unrestricted funds 18	17,904 (39,629) 26,758 22,289
Restricted funds 19	191,483 129,325 2,450 3,768
Total Funds 20	209,387 89,696 29,208 26,057

The Group statement of cashflows, basis of preparation, principal accounting policies and the notes to the financial accounts below are an integral part of these financial statements. The financial statements were approved by the Board of Directors on 11 May 2023 and were signed on its behalf by:

Sir Kenneth Olisa, Chairman

----- Start of picture text -----
Year ended Year ended Year ended Year ended
31 August 31 August 31 August 31 August
2022 2022 2021 2021
Note £’000 £’000 £’000 £’000
Net cash inflow from operating
A 13,228 28,213
activities
Taxation - -
Net cash generated operating
13,228 28,213
activities
Cash flow from investing activities
Capital expenditure and financial
investment
Purchase of tangible assets (10,068) (5,589)
Purchase of intangible assets (306) (219)
Cash inflow on conversion
of academies and business 445 1,460
combinations
-
Net purchase of investments (5,000)
Investment Income (31)
Cash from disposal of fixed assets - 185
Investment income received 44 1
Net cash outflow from capital
expenditure and financial (14,915) (4,162)
investment
Total Net cash (expended) /
(1,687) 24,051
generated from investing activities
Cash flow from financing activities
Interest and charges paid (236) (1,324)
Repayment of loans (2,255) (1,193)
Net cash used in financing activities (2,491) (2,517)
Net (decrease) / increase in cash
B (4,178) 21,534
and cash equivalents
Cash and cash equivalents at
the beginning of the period at 1 55,031 33,497
September 2021
Cash and cash equivalents at
C 50,853 55,031
31 August 2022
----- End of picture text -----

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a) Reconciliation of net (outgoing) / incoming resources before other recognised gains to net cash inflow from operating activities

----- Start of picture text -----
Year ended 31 Year ended 31
August 2022 August 2021
£’000 £’000
Net incoming resources before other recognised gains (17,490) 28,507
Donation of net assets arising on acquisition (5,736) (19,381)
Pensions - adjustment to net incoming resources 9,119 1,188
Investment income received (44) (1)
Bank charges and interest paid 236 1,324
Depreciation and fixed asset write offs 6,761 6,575
Amortisation of goodwill 6,053 6,797
Impairment of goodwill - 568
Net loss on write off / disposal of tangible fixed assets - 58
Net loss on write off / disposal of intangible fixed assets - 21
Intangible assets transfers (68) (310)
Tangible assets transfers 68 308
Net loss on disposal of investments 166 -
Decrease in stock 29 122
Increase / (decrease) in debtors 7,936 (9,520)
Decrease / (increase) in value of joint ventures 52 (5)
(Decrease) / Increase in creditors (6,515) 8,195
Increase in deferred income 8,545 4,660
Increase / (decrease) in provisions for liabilities and charges 4,116 (893)
Net cash inflow from operating activities 13,228 28,213
----- End of picture text -----

b) Reconciliation of net cash flow to movement in net funds

	1 September 2021 Cash Flow 31 August 2022 £’000 £’000 £’000
Cash pledged as security for guarantee	250 - 250
Unrestricted cash at bank and in hand	54,781 (4,178) 50,603
Total cash at bank and in hand	55,031 (4,178) 50,853

c) Cash and cash equivalents

	Group	Company	Company
2022	2021	2022	2021
£’000 Cash and cash equivalents consist of: Cash at bank and in hand 50,853	£’000 55,031	£’000 8,857	£’000 10,616
Total cash at bank and in hand 50,853	55,031	8,857	10,616

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Basis of preparation

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain tangible fixed assets and fixed asset investments.

Basis of consolidation

The consolidated financial statements include the activities of the Trust and its joint ventures and subsidiary undertakings (note 9) made up to 31 August 2022. Intra-Group transactions and profits are eliminated on consolidation. The results, assets and liabilities of the subsidiary undertakings are combined with those of the Trust in the results of the Group on a line by line basis.

Joint ventures are accounted for under the equity method of accounting.

FRS 102 Exemptions

FRS 102 allows a qualifying entity, certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the Company’s Trustees.

The Company has taken advantage of the following exemptions:

• a) From preparing a company statement of cash flows, on the basis that it is a qualifying entity and the consolidated group statement of cash flows, included in these financial statements, includes the company cash flows; and

• b) From preparing a company Statement of Financial Activities (SOFA), on the basis that it is a qualifying entity and the consolidated SOFA, included in these financial statements, includes the company SOFA.

Functional currency

The Group financial statements are presented in pound sterling and rounded to thousands. The company’s functional and presentation currency is the pound sterling.

Principal accounting policies

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounting in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 and the Companies Act 2006.

Incoming Resources

All incoming resources are recognised in the Statement of Financial Activities when there is an entitlement to the funds, the receipt is probable, and the amount can be measured reliably.

Contract income

Where the outcome of a transaction involving the rendering of services via contracts can be estimated reliably, the revenue is recognised by reference to the stage of completion at the end of the reporting period. This is reviewed and, when necessary, revised based on the estimates of revenue and costs as the contract progresses.

Stage of completion is determined using the method that measures most reliably the work performed and assumes use of the straight-line basis unless there is evidence that some other method better represents the stage of completion.

Deferred income

Where income is received for a specific period and that period straddles the Trust’s year end, the appropriate portion of income is deferred and carried forward to the following year, or where income is received in advance of the services being delivered.

Donations and other voluntary income

All donations are included in the Statement of Financial Activities and accounted for according to the date of receipt.

Other voluntary income is recognised when there is entitlement to the funds, any performance conditions attached to the item of income has been met, and where it is probable that the income will be received, and the amount can be measured reliably.

Where assets and liabilities are received on the transfer of an existing academy into the academy trust, the transferred net assets are measured at fair value and recognised in the balance sheet at the point when the risks and rewards of ownership pass to the academy trust. An equal amount of income is recognised for the transfer of an existing academy into the academy trust within donations and capital grant income to the net assets acquired.

Sales and trading activities

Income from the Retail trading division (charity shops) and sales made as part of the Trust’s other trading operations are recognised on point of sale for both donated and purchased goods.

Donated services from volunteers

Donated services from our volunteers are not included within the financial statements.

The services of volunteers are critical to the Trust, particularly in relation to the operation of our retail shops. These ventures would not be able to continue without the support and time given by our network of volunteers.

Donated goods for resale

The charity receives donated goods for resale in its network of charity shops. Income is recognised at point of sale as the Trustees consider it to be impractical to recognise such gifts on receipt due to the large number of small value items received.

Grants / fees

All revenue grants receivable from the Government agencies and Local Authorities relating to the period are included in the Statement of Financial Activities. All grants that relate to specific capital expenditure are disclosed as income in the year in which they are receivable and disclosed as restricted funds.

Resources expended

All expenditure is included on an accruals basis and is recognised when:

• There is a legal or constructive obligation to pay at the reporting date as a result of a past event.

• It is more likely than not that a transfer of economic benefit, often cash, will be required in settlement; and

• When the amount of the obligation can be measured or estimated reliably.

Costs have been attributed to one of the functional categories of resources expended in the Statement of Financial Activities:

• a) Costs of raising funds are costs incurred in seeking voluntary contributions, operating charity shops and investment management costs.

• b) Charitable activity expenditure relates to the costs of running and supporting the Trust’s various charitable activities for furthering its charitable aims for the benefit of its beneficiaries; and

• c) ‘Other’ relates to costs incurred that are neither related to raising funds nor part of the Trust’s expenditure on its charitable activities.

Apportionment of costs

Costs have been allocated directly to a business heading wherever possible using relevant cost drivers for each support cost department. Support costs that have not been directly allocated to a business heading in this way have been attributed to a business heading based on the results of an activity-based costing exercise undertaken for the organisation as a whole.

Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term.

Irrecoverable VAT

Any irrecoverable VAT is charged to the Statement of Financial Activities or capitalised as part of the cost of the related asset, where appropriate.

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Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation.

Land and buildings transferred as part of the Academies Programme to Shaw Education Trust are reflected within freehold or long leasehold fixed assets at the point of transfer. They are recorded at valuation at the point of transfer and are depreciated from that date.

Where freehold land and buildings are purchased for use by specific services, the difference between the cost and estimated residual value is depreciated on a straight-line basis over the service contract’s life.

Long leasehold properties are amortised over the remaining life of the lease. Short leasehold improvements and charity shop fixed assets are depreciated over a period up to the first break clause on individual leases, or over five years if sooner. Assets under construction are not depreciated until they are completed and brought into use.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual values, on a straight-line basis over their expected useful economic life as follows:

• Freehold buildings 2% (or over the lifetime of the contract if more appropriate).

• Long leasehold buildings 2% (or length of lease if shorter than 50 years).

• Fixtures and fittings 20% (or more if first break clause of lease is within five years).

• Equipment and vehicles 20%.

• Computer equipment 25%; and

• Plant and machinery in Forth Sector 6.75%.

Assets costing less than £3,000 are not capitalised.

Intangible fixed assets – goodwill and computer software

Goodwill represents the excess of the cost of a business combination over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisition of subsidiaries is included

in Intangible Assets. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life.

During 2017/18 The Shaw Trust Limited acquired Ixion Holdings (Contracts) Limited and Prospects Group 2011 Limited and the intangible fixed assets include goodwill arising on the purchase.

In determining the period of amortisation, management considered the length of the current contracts, the performance of the business and the likelihood of securing additional future business and concluded that five years was a reasonable time over which to amortise the goodwill arising on these acquisitions.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cashgenerating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit, and then to the other assets of the unit prorata on the basis of the carrying amount of each asset in the unit.

Computer software 25% (or over the lifetime of the contract if more appropriate).

Donated fixed assets

All donated fixed assets are included in the financial statements at a reasonable estimate of their market value at the date of receipt.

Investments in financial securities

Fixed asset investments are investments held in listed companies, government and corporate bonds and other investments. These investments are stated at mid-price market value at the period-end.

Unrealised gains / (losses) are derived from the movement in market value during the year and are recorded in the Statement of Financial Activities.

Investments are carried at ‘fair value’ and therefore stated at market value as at the balance sheet date. Changes in fair value are recognised in the income and expenditure section of the Statement of Financial Activities.

Investments in subsidiaries jointly controlled entities and associates

These investments are held at cost less impairment.

Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Current asset investments

Current asset investments comprise cash held on term deposits with qualifying financial institutions.

Basic financial instruments

The Group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of Financial Instruments.

Financial Assets: Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities: Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Stocks

Stocks are valued at the lower of cost and net realisable value. Where necessary, provision is made for obsolete, slow-moving and defective stocks.

Designated funds

Reserves which relate to specific fixed assets or contracts are held as designated funds.

Revaluation reserve

The difference between the market value and the historic cost of revalued, unrestricted, fixed assets, including available for sale investments, is accounted for within the revaluation reserve, along with the difference between the market value and historical cost of fixed asset investments.

Unrestricted funds

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the objectives of the Trust.

Restricted funds

These are funds where the purpose for which they can be used has been specifically restricted by the donor, contractual agreement, or the law.

The amounts in the funds represent the monies still remaining for future expenditure or funds represented by fixed assets.

Provisions

Provisions are recognised when the Trust has a legal or constructive financial obligation that can be reliably estimated and for which there is an expectation that payment will be made.

Pension costs

The Trust operates insured defined contribution pensions for eligible employees. All applicable pension costs are charged in the Statement of Financial Activities as incurred.

In addition to the core The Shaw Trust Limited defined contribution pension scheme, the Trust operates a number of defined benefit pension arrangements, which are detailed in note 24 to the Financial Statements.

The actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

The amounts charged to net income / (expenditure) are the current service costs and the costs of scheme introductions, benefit changes, settlements, and curtailments.

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They are included as part of staff costs as incurred. Net interest on the net defined benefit liability / asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations.

The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

The costs to the Trust of funding the schemes are accounted for in accordance with FRS 102. The contributions paid by the Trust to the defined contribution schemes are charged as resources expended in the year in which they are payable, in accordance with the rules on accounting for defined contribution pension schemes as set out in FRS 102.

Related party transactions

All related party transactions are disclosed in note 26.

Foreign exchange transactions

Foreign currency transactions are recorded at the spot rate at the transaction date. The assets and liabilities of the Trust’s joint ventures and subsidiaries are translated into sterling at the rates ruling at the balance sheet date. The revenue and expenses of those companies are translated into sterling at the average rate during the year and gains or losses arising on translation are dealt with through the Statement of Financial Activities.

Tax and deferred tax

Current tax arising in non-charitable subsidiaries is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is calculated using the tax rates and law that have been enacted or substantively enacted by the reporting date that are expected to ally to the reversal of the timing difference.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Statement on going concern

The charity continues to adopt the going concern basis in preparing its financial statements.

The Trust prepares a detailed annual budget and five-year business plan which indicates a positive cash position and operational profitability for the duration of the plan. This plan has been approved by the Trustees and the Trust’s principal lenders.

Having reviewed the charity’s and group’s forecasts and its current reserves, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operation for the foreseeable future.

Key accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carry amounts of assets and liabilities within the next financial year are addressed below.

• a) Impairment of intangible assets and goodwill (note 7)

The Group considers whether intangible assets and goodwill are impaired. Where an indication of impairment is identified, the estimation of recoverable value requires estimation of the recoverable value of the CGU. This requires estimation of the future cash flows from the

CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows. Where it indicates that the net present value of the CGU is lower than its value shown in the financial statements an impairment is taken. In the year ended 31 August 2020 this amounted to an additional write-down in goodwill of £15.9m. An adjustment was required in the year ended 31 August 2022 and amounted to £568k.

b) Provisions (note 17)

Provision is made for dilapidations, asset retirement obligations and contingencies. These provisions require management’s best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, timing of the cash flows and discount rates used to establish net present value of the obligations require management judgement.

c) Defined benefit pension scheme (note 24)

The Group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including life expectancy, salary increases, asset valuation and the corporate bond discount rate. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a) Critical judgements in applying the Group’s accounting policies

Assessing whether the Group controls SET requires judgement. SET is a wholly owned subsidiary of The Shaw Trust Limited, who is also the sponsor company. Through the SET Articles of Association, The Shaw Trust Limited can appoint members and Trustees to the Shaw Education Trust Board, thereby giving control to the decision making and authority for the work of the Academy Trust. The Group considers

that these powers demonstrate that the Group controls SET.

In addition, Trustees have assessed the value of goodwill in the balance sheet and assessed the need for an impairment review. There is a significant judgement to establish the individual Cash Generating Unit (CGUs) for the purpose of impairment and to establish a methodology for the allocation of Goodwill to each CGU.

In the case of the Prospects Group, we determined the CGUs to be the individual trading businesses as the cash flows, assets and liabilities of these businesses are separately identifiable.

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117

Notes to the financial statements

1. Total incoming resources / material funders (continued)

The Trustees consider material funders to be those contributing over 10% of income.

General information

The Shaw Trust Limited (the “Company”) is domiciled in England and Wales with registration number 01744121. The address of its registered office is Black Country House, Rounds Green Road, Oldbury, B69 2DG.

The principal activity of the Company during the period is to co-create and deliver high quality employability programmes and complementary services for people with complex needs, challenging life circumstances or other barriers that impact on access to work.

1. Total incoming resources / material funders

The total income of the Trust, including income derived from international joint ventures, comprises:

----- Start of picture text -----
Year ended Year ended
Unrestricted Restricted 31 August Unrestricted Restricted 31 August
funds funds 2022 funds funds 2021
£’000 £’000 £’000 £’000 £’000 £’000
Donation of net
- -
assets arising on 5,736 5,736 19,381 19,381
mergers
Donations and
50 4,691 4,741 148 5,912 6,060
Legacies
Other Trading
2,379 777 3,156 2,083 821 2,904
Activities (note 1a)
Income on
investments,
44 - 44 1 - 1
interests and
dividends
Covid related
4 - 4 829 1,545 2,374
grants
Other Income 5 - 5 1 - 1
Incoming
resources from 2,482 11,204 13,686 3,062 27,659 30,721
generated funds
Contract delivery,
social enterprises
184,360 97,916 282,276 156,775 76,007 232,782
and other
charitable activities
Joint Venture –
- -
(111) (111) (101) (101)
Intergracja
Total 186,842 109,009 295,851 159,837 103,565 263,402
----- End of picture text -----

Material funders are The Department of Work and Pensions (DWP) from which a total of £79.1 million (2021: £57.3 million) was earned. Shaw Education Trust received £64.0 million (2021: £57.4 million) general annual grant from the Department for Education.

The fair value of net assets acquired from business combinations are treated as a donation (see note 25).

The results of The Shaw Trust Limited, as required to be disclosed by paragraph 397 of the Charity SORP, are:

----- Start of picture text -----
Year ended Year ended
31 August 2022 31 August 2021
£’000 £’000
Total income 109,211 80,260
Net outgoing / (incoming) resources (3,150) (6,578)
----- End of picture text -----

1a. Other Trading Activities

1a. Other Trading Activities
Income from charitable activities	Year ended 31 August 2022 £’000 3,156	Year ended 31 August 2021 £’000 2,904
Total income	3,156	2,904

2. Analysis of total resources expended

----- Start of picture text -----
Year ended 31 Year ended 31
August 2022 August 2021
£’000 £’000
Raw Materials and Consumables 17,206 12,629
Staff Costs – salaries, NI and pensions 188,955 155,055
Staff Costs – travel and pension charges 14,015 4,907
Other Operating Costs 61,527 53,394
Depreciation 6,761 6,575
Amortisation and Impairment of Goodwill 6,053 7,365
Finance Charges 236 1,324
Total 294,753 241,249
----- End of picture text -----

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119

----- Start of picture text -----
2021
Support 2021 Support
Activities costs not Activities costs not
undertaken directly undertaken directly
directly allocated 2022 Total directly allocated 2021 Total
£’000 £’000 £’000 £’000 £’000 £’000
Raising Funds
Fundraising 3 - 3 77 - 77
- -
Charity shops 2,309 2,309 2,308 2,308
Investment
management 13 - 13 - - -
fees
Total cost of
- -
2,325 2,325 2,385 2,385
Raising Funds
Charitable
Activities
Impairment of - - - 568 - 568
goodwill
Contract
delivery, social
enterprises and 288,782 2,249 291,031 234,660 2,250 236,910
other charitable
activities
Usage of - -
1,397 1,397 1,386 1,386
fundraising funds
Total Cost of
Charitable 290,179 2,249 292,428 236,614 2,250 238,864
Activities
Total Resources
292,504 2,249 294,753 238,999 2,250 241,249
Expended
----- End of picture text -----

Support costs not directly allocated comprise the following:

	Year ended 31	Year ended 31
Support costs	August 2022	August 2021
	£’000	£’000
Management 681 Corporate Governance 316 Finance 345 Information Technology 597 Human Resources 271 Communications and Marketing 39 Support costs not directly allocated 2,249		810 279 306 590 237 28 2,250

3. Finance costs

3. Finance costs
Year ended 31	Year ended
August 2022	31 August 2021
£’000	£’000
Bank charges, interest and other fnance costs (note 2) 236 Net fnance cost on defned beneft pension scheme (note 24) 2,319 Total 2,555	1,324 1,929 3,253

These charges have been reported in the Statement of Financial Activities under Charitable Activities.

4. Net incoming resources

----- Start of picture text -----
Year ended 31 Year ended 31
August 2022 August 2021
The net incoming resources are stated after charging: £’000 £’000
Depreciation charge for the year on tangible owned assets 6,761 6,575
Amortisation charge for the year on intangible owned assets 6,053 6,797
Goodwill impairment charge - 568
Auditors’ remuneration: audit services
- Parent Company and consolidated financial services 73 70
- Audit of the company’s subsidiaries 132 128
Auditors’ remuneration: other services
- -
- services relating to taxation
- all other services 15 -
Operating leases:
- others 132 146
- property 1,887 1,443
Net loss on write off / disposal of fixed assets - 79
----- End of picture text -----

5. Employees

The average monthly number of persons employed by the Group during the year was:

	Year ended 31	Year ended 31
	August 2022	August 2021
Charitable Retail	Average Headcount purposes 5,375 55	Average Headcount 4,707 66
Total	5,430	4,773

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121

Employee costs for the above persons during the year were:

Employee costs for the above persons during the year were:
	Year ended 31	Year ended 31
	August 2022	August 2021
	£’000	£’000
Wages and salaries Social security costs Other pension costs (note 24)	151,054 14,665 23,236	125,687 11,571 17,797
Total	188,955	155,055

Included in the above figures is a figure of £427k (2020-21: £353k) for redundancies, of which £150k was accrued as at the year end.

6. Trustees’ and senior executives’ remuneration

• a) During 2022 and 2021, no Trustee received any emoluments from the Trust. Incidental travelling costs of £759 (2021: £nil) were reimbursed or paid on behalf of four (2021: Nil) Trustees by the Trust.

• b) The ‘Directorships’ outlined on page 94 of these financial statements in respect of senior executives are nominal titles and accordingly no disclosure of ‘Directors’ emoluments are included in these financial statements.

• c) Included within the support costs is the amount of £10,651 (2021: £9,055) in respect of indemnity insurance which protects the Trust, up to an agreed limit, against loss arising from defaults of or neglect by its Trustees and officers.

• d) The Key Management Personnel of the Group comprise the Trustees and the Executive Team as listed on page 163. The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the Group was £1,908,563 (2021: £1,734,045) for the year.

The total emoluments of employees earning more than £60,000 fall within the following bandings:

2022	2021	2022	2021
		Total	Total
		Emoluments	Emoluments
Total	Total	excl. severance	excl. severance
Emoluments	Emoluments	payments	payments
Number £60,001 - £70,000 66 £70,001 - £80,000 39 £80,001 - £90,000 11 £90,001 - £100,000 12 £100,001 - £110,000 9 £110,001 - £120,000 4 £120,001 - £130,000 0 £130,000 - £140,000 1 £140,001 - £150,000 2 £170,001 - £180,000 - £180,001 - £190,000 1 £220,001 - £230,000 1 £250,001 - £260,000 - £290,001 - £300,000 2	Number 56 31 11 13 8 2 1 1 3 3 - - 1 -	Number 66 39 11 12 9 4 0 1 3 - 1 1 - 1	Number 57 30 11 13 9 2 1 - 4 2 - - 1 -
148	130	148	130

7. Intangible Assets

Group	Goodwill	Computer software	Total
	£’000	£’000	£’000
Cost At 1 September 2021 Additions Reclassifcations At 31 August 2022 Accumulated Amortisation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022	53,517 - - 53,517 (46,637) (5,708) (52,345) 1,172	8,540 306 68 8,914 (7,985) (345) (8,330) 584	62,057 306 68 62,431 (54,622) (6,053) (60,675) 1,756
At 1 September 2021	6,880	555	7,435

The total pension contributions in respect of the above staff, all of which were made to defined contribution schemes, were £1,422,383 (2021: £1,453,613).

Total emoluments of employees include, where applicable, salary, bonuses, benefits-in-kind, car allowance, payments in lieu of notice and redundancy. Total payments in lieu of notice and redundancy accruing to those employees who earned more than £60,000 during the year was £150,000 (2021: £137,871).

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123

The goodwill arose on the acquisition of 100% interest in Ixion Holdings (Contracts) Limited and Prospects Group 2011 Limited on 30 May 2017 and 30 November 2017 respectively (see note 26).

The Prospects Group was acquired for £17.4m. Net liabilities at acquisition were £30.7m resulting in a goodwill balance on acquisition of £48.1m being recognised in the Group financial statement on consolidation. This is being amortised over five years such that the remaining goodwill balance at 31 August 2022 was £1.2m.

Ixion Group was acquired for £2m. Net assets at acquisition were £2.2m resulting in a goodwill balance on acquisition of £0.2m being recognised in the Group financial statement on consolidation. This is being amortised over five years such that the remaining goodwill balance at 31 August 2022 was £6k.

Amortisation will occur in line with The Shaw Trust Limited accounting policies commencing on the date of acquisition with adjustments to reflect ongoing valuations of the investments.

----- Start of picture text -----
Computer
Company software Total
£’000 £’000
Cost
At 1 September 2021 7,225 7,225
Reclassifications intangible fixed assets 68 68
At 31 August 2022 7,293 7,293
Accumulated Amortisation
At 1 September 2021 (6,779) (6,779)
Charge for the year (274) (274)
At 31 August 2022 (7,053) (7,053)
Net book value
At 31 August 2022 240 240
At 1 September 2021 446 446
----- End of picture text -----

8. Tangible Assets

----- Start of picture text -----
Freehold Long Equipment
land and leasehold Assets under and Fixtures and
Group buildings property construction vehicles fittings Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 September 2021 41,392 160,622 1,233 4,352 10,021 217,620
Acquisitions of - - - -
7,404 7,404
academies
Additions - 3,081 4,484 120 2,383 10,068
- - - -
Disposals (7) (7)
Transfers - - - (6) 6 -
Revaluations 1,121 - - - - 1,121
Reclassifications 2,227 975 (3,673) (27) 430 (68)
At 31 August 2022 44,740 172,082 2,044 4,439 12,833 236,138
Accumulated depreciation
-
At 1 September 2021 (4,535) (14,476) (4,013) (7,026) (30,050)
-
Charge for the year (639) (4,898) (70) (1,610) (7,217)
Effect of re-life of 68 377 - (3) 14 456
assets
Disposals - - - - 7 7
Transfers - - - 5 (5) -
Charge on revalued - - - -
(8) (8)
assets
Reclassifications - - - 10 (10) -
-
At 31 August 2022 (5,114) (18,997) (4,071) (8,630) (36,812)
At 31 August 2022 39,626 153,085 2,044 368 4,203 199,326
At 1 September 2021 36,857 146,146 1,233 339 2,995 187,570
----- End of picture text -----

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125

----- Start of picture text -----
Freehold Long Equipment
land and leasehold Assets under and Fixtures and
Company buildings property construction vehicles fittings Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 September 2021 - 3,152 79 543 6,346 10,120
Additions - - - - 1,454 1,454
- - - -
Disposals (7) (7)
Transfers - - - - 30 30
- - - -
Tangible fixed assets (68) (68)
At 31 August 2022 - 3,152 11 543 7,823 11,529
Accumulated depreciation
- -
At 1 September 2021 (1,488) (534) (4,632) (6,654)
- -
Charge for the year (49) (2) (774) (825)
Effect of re-life of - 378 - (7) - 371
assets
Disposals - - - - 7 7
Transfers - - - - (23) (23)
- -
At 31 August 2022 (1,159) (543) (5,422) (7,124)
Net book value
At 31 August 2022 - 1,993 11 - 2,401 4,405
At 1 September 2021 - 1,664 79 9 1,714 3,466
----- End of picture text -----

9. Investments in Subsidiary Undertakings and Joint Ventures

Company interests in group undertakings

----- Start of picture text -----
2022
£’000
At 1 September 2021 19,355
Additions 2,000
At 31 August 2022 21,355
Amortisation
-
At 1 September 2021
-
Impairment
-
At 31 August 2022
Net book value
At 31 August 2022 21,355
At 1 September 2021 19,355
----- End of picture text -----

Land and buildings transferred to Shaw Education Trust (SET) as part of the Academies Programme are reflected within freehold or long leasehold fixed assets at the point of transfer.

The land and buildings transferred as part of the Academies Programme are subject to the provisions of the individual academy funding agreements and the master funding agreement.

These provisions may include preventing the company from selling the land and buildings. Upon termination of a funding agreement, whether as a result of the Secretary of State for Education or SET serving notice, the assets relating to that agreement will return to the Secretary of State.

The value of the land and buildings to which these academy agreements apply is £183,947,000. (2021: £177,809,000).

The value of the transferred assets has been recognised in the Statement of Financial Activities as net assets taken on with mergers and transfers.

Reclassifications relate to software assets formerly shown as tangible assets.

Balances disclosed in the prior year financial statements, have been shown as transfers to better reflect the nature of the balances.

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The Trust has the following wholly owned subsidiaries and joint ventures. All subsidiaries, other than those that are dormant, are included in the consolidated financial statements.

----- Start of picture text -----
Company Charity Country of Percentage Nature of
Name of subsidiary
Number Number incorporation of control business
Shaw Trust
England and
International 5859747 100% Dormant
Wales
Partnerships Limited
Disabled Living England and
1837993 100% Dormant
Foundation Wales
Careers England and
1647371 100% Dormant
Development Group Wales
Shaw Trust Services England and
3176328 100% Dormant
Limited Wales
Shaw Trust England and
2521307 100% Dormant
Enterprises Limited Wales
Shaw Southern
ABN 41 075 242 027 Australia 100% Dormant
Australia Limited
Forth Sector SC124791 SC016414 Scotland 100% Charity
Company
Prospects Group England and
7708678 100% Limited by
2011 Limited Wales
Shares
Company
Ixion Holdings England and
6886337 100% Limited by
(Contracts) Limited Wales
Guarantee
Shaw Education Exempt England and
9067175 100% Charity
Trust Charity Wales
England and Limited by
ST07033535 Limited 7033535 100%
Wales Guarantee
----- End of picture text -----

The registered address for all of the above subsidiaries (with the exception of The Shaw Education Trust and Forth Sector) is Black Country House, Rounds Green Road, Oldbury, B69 2DG.

The registered address for The Shaw Education Trust is: Kidsgrove Secondary School, Gloucester Road, Kidsgrove, Stoke-on-Trent ST7 4DL.

The registered address for Forth Sector is: Duddingston Yards, Duddingston Park South, Edinburgh, Lothian, EH15 3NT.

The Trust made a further investment in Ixion Holdings (Contracts) Limited in the year, recapitalising its investment with an injection of 2,000,000 shares.

			Gross	Net surplus / (defcit) of
			incoming	income over
The Shaw Trust share of:	Total assets	Total liabilities	resources	expenditure
2022	£’000	£’000	£’000	£’000
Forth Sector Limited Ixion Holdings (Contracts) Limited Prospect Services Homes2Inspire Limited Shaw Education Trust Total 2021 Forth Sector Limited Ixion Holdings (Contracts) Limited Prospects Services Homes2Inspire Limited Shaw Education Trust	3,010 8,009 29,489 12,747 214,757 268,012 £’000 3,075 8,346 54,803 7,138 202,330	(3,226) (6,370) (7,031) (17,762) (25,700) (60,089) £’000 (3,241) (7,848) (91,663) (14,241) (76,797)	1,066 13,733 39,055 23,643 106,655 184,152 £’000 1,117 12,120 33,496 20,477 113,415	(49) (859) 59,318 (1,009) 63,524 120,925 £’000 (79) (952) 4,298 (221) 6,840
Total	275,692	(193,790)	180,625	9,886

Only the material subsidiaries results have been disclosed. Prospects Services and Homes2Inspire Limited are part of the Prospects Group.

Joint Ventures

Joint Ventures
		Country of	Percentage	Nature of
Name of joint venture	Company Number	incorporation	of control	business
The Integracja Foundation	KRS: 0000144578	Poland	50%	Charity
STAR Skills Limited	10086962	England and Wales	50%	Private Limited Company

The registered address for The Integracja Foundation is: ul. Andersa 13, 00-159 Warszawa, Poland. This investment was disposed of as at 31 August 2022.

The registered address for STAR Skills Limited is: Black Country House, Rounds Green Road, Oldbury, West Midlands, B69 2DG. STAR Skills Limited is a dormant company.

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129

	Intergracja	Foundation	Total
The Shaw Trust Limited share of:	2022	2021	2022	2021
	£’000	£’000	£’000	£’000
Total assets Total liabilities Net assets Gross incoming resources Net surplus / (defcit) of income over expenditure	- - - 111 (10)	93 (41) 52 101 6	93 (41) 52 101 (10)	93 (41) 52 101 6

The investments in the joint ventures are stated at the net of the Group’s interest in the gross assets and gross liabilities of the joint ventures.

10. Investments in financial securities

As a part of the Trust’s investment policy, a portion of funds available for investment is held in a broad range of UK and overseas listed equities, Government and corporate bonds and alternative investments, in order to generate capital growth without exposure to undue risk. These funds were held for the medium-term and as a result, and in accordance with accounting guidance, these investments were classified as fixed assets.

The movement on the value of the investments during the year is as follows:

----- Start of picture text -----
Group and company 2022 2021
£’000 £’000
- -
At 1 September 2021
Additions to investments at cost 5,000 -
Dividends received 31 -
Interest received 10 -
-
Management charges paid (10)
Net loss on revaluation (208) -
-
At 31 August 2022 4,823
Value of investments
Group and company 2022 2021
£’000 £’000
Investments listed on a UK recognised stock exchange, or valued -
1,123
by reference to one
Investments listed on a non-UK recognised stock exchange, or -
2,262
valued by reference to one
UK Government and Corporate Bonds 607 -
Other investments 597 -
Cash and settlements pending 234 -
-
At 31 August 2022 4,823
----- End of picture text -----

11. Palmer Gardens

The Shaw Trust Limited is the corporate Trustee of Palmer Gardens, which is a charitable trust, first registered as a charity on 25 March 1977 under number 273092. Under a Scheme dated 21 August 2008 a uniting direction was passed combining The Shaw Trust Limited and Palmer Gardens for accounting purposes. Consequently, the trading results, assets and liabilities of Palmer Gardens are accounted for within the restricted funds of The Shaw Trust Limited. The financial results of Palmer Gardens are shown below.

As at 31 August 2022, Palmer Gardens has a Revenue Fund of £Nil (2021: £Nil) and a Capital Fund of £449,000 (2021: £579,000). The income and expenditure account for the Revenue Fund is set out below:

----- Start of picture text -----
Revenue Fund 2022 2021
£'000 £'000
Turnover 402 821
Cost of sales (340) (292)
Gross Profit 62 529
Selling and distribution (350) (251)
Administration (86) (60)
Finance (10) (12)
Operating (deficit) / surplus (384) 206
Support costs (28) (32)
Depreciation (4) (1)
Net (deficit) / surplus (416) 173
- -
Palmer Gardens Revenue Fund brought forward
Transfer from capital fund 4 1
Donation from / (to) The Shaw Trust Limited to Palmer Gardens 412 (174)
- -
Balance of restricted revenue reserve (see note 19)
----- End of picture text -----

The assets and liabilities for the Capital Fund are set out below:

Capital Fund	2022	2021
	£’000	£’000
Fixed assets Palmer Gardens Analysis of net assets: Current assets – stock Current liabilities - creditors The Shaw Trust Limited Net current assets Total assets less current liabilities Funds Restricted capital funds	449 125 (125) - 449 449	579 123 (123) - 579 579
Total (see note 19)	449	579

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131

12. Stocks

12. Stocks
		Group	Company
Finished goods	2022	2021	2022	2021
	£’000	£’000	£’000	£’000
Plants, shrubs, nursery and books Shop stock Other	369 3 25	350 41 35	337 3 25	216 41 35
Total	397	426	365	292

13. Debtors

Amounts falling due within one year:

13. Debtors Amounts falling due within one year:
	Group	Company
2022	2021	2022	2021
£’000	£’000	£’000	£’000
Amounts falling due within one year: Trade debtors 15,597 Amounts due from group undertakings - Loans to group undertakings - Deferred tax asset 84 Other debtors 723 Prepayments and accrued income 27,965 Total 44,369	20,350 - - 85 291 13,200 33,926	5,070 16,045 100 - 118 15,633 36,966	9,737 8,620 100 - 59 6,102 24,618

Balances within Prepayments and Accrued Income have risen substantially primarily due to different timing of invoicing.

13b. Debtors greater than one year

13b. Debtors greater than one year
	Group	Company
2022	2021	2022	2021
£’000	£’000	£’000	£’000
Deferred tax asset 388 Loans to group undertakings - Total debtors greater than one year 388	18,768 - 18,768	- 300 300	- 300 300

14. Deferred Taxation

----- Start of picture text -----
2022 2021
£’000 £’000
Accelerated capital allowances 346 411
Short term timing differences - trading 126 18,442
472 18,853
Analysed as:
Amount due within one year 84 85
Amount due after more than one year 388 18,768
472 18,853
Movement in year
Opening balance 18,853 12,492
Changes in deferred tax (18,381) 6,361
Closing balance 472 18,853
----- End of picture text -----

The amount of the net reversal of deferred tax expected to occur next year relating to the reversal of existing timing differences on tangible fixed assets and the origination of new timing differences on intangible fixed assets is £nil.

The Group have no unrecognised deferred tax assets (2021: £nil).

15. Cash at bank and in hand

					Group	Group	Company	Company
					2022	2021	2022	2021
					£’000	£’000	£’000	£’000
Cash	at	bank	and	in	hand 50,853	55,031	8,857	10,616

Cash at bank and in hand includes £250,000 that has been pledged as security against a guarantee provided by the Trust’s bankers to Doncaster Borough Council in respect of the Trust’s obligations to the South Yorkshire Pension Scheme.

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16. Creditors - amounts falling due within one year

16. Creditors - amounts falling due within one year
	Group	Company
2022	2021	2022	2021
£’000	£’000	£’000	£’000
Trade creditors 4,661 Taxation and social security 8,000 Other creditors 8,333 Loans 251 Accruals 12,307 Deferred income 38,001 Total 71,553	5,714 15,402 7,122 2,247 11,578 29,456 71,519	1,571 4,118 6,829 - 4,396 26,833 43,747	1,640 4,093 4,227 2,000 3,493 17,061 32,514

16b. Creditors - amounts falling due after one year

16b. Creditors - amounts falling due after one year
	Group	Company
2022	2021	2022	2021
£’000	£’000	£’000	£’000
Amounts falling due after one year: Loans and Borrowings 1,034 Total 1,034	1,293 1,293	- -	- -

Loans include a bank loan amounting to £nil (2021: £2.0m) which was secured by a fixed charge on all The Shaw Trust Limited Group assets, excluding Shaw Education Trust.

Interest accrues at a variable margin ranging between 2.25% and 3.25% over LIBOR and is payable over periods ranging between one month and six months, or any other period agreed between the company and the lender.

Deferred Income

17. Provision for liabilities and charges

Deferred Income
Group	2022	2021
	£’000	£’000
At 1 September 2021 Amounts received in year Amounts used in year At 31 August 2022 Company At 1 September 2021 Amounts received in year Amounts used in year	29,456 91,800 (83,255) 38,001 2022 £’000 17,061 68,036 (58,264)	24,111 22,903 (17,558) 29,456 2021 £’000 8,627 14,304 (5,870)
At 31 August 2022	26,833	17,061

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Group Dilapidations Other Provisions Total
£’000 £’000 £’000
At 1 September 2021 1,024 207 1,231
Created during the Year 770 3,971 4,741
Utilised during the year (69) (556) (625)
At 31 August 2022 1,725 3,622 5,347
Company Dilapidations Other Provisions Total
£’000 £’000 £’000
At 1 September 2021 390 132 522
Created during the Year 492 3,967 4,459
Utilised during the year (69) (556) (625)
At 31 August 2022 813 3,543 4,356
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The dilapidations provisions relates to the costs that the Trust will possibly incur in reinstating its leased properties to original condition, accrued over the length of the lease. We have estimated the cost at a historic average cost and used the calculation to estimate the future cost. This rate will be reassessed on an annual basis to keep it up to date. Future costs are uncertain hence the provision.

The other provisions are provided for Shaw Trust employability contracts taking into account contractual obligation and clawback rates from the most recent inspections. Some contracts are being inspected now and others will be subject to inspection very soon. The Trust is finalising the details with relevant commissioners.

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Movement in Funds

18. Unrestricted funds

Movement in Funds

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At 31
At 1 September August
2021 Incoming (Outgoing) Transfer 2022
Group £’000 £’000 £’000 £’000 £’000
Designated funds:
Current assets fund 2,171 1,477 (982) - 2,666
-
Total designated funds 2,171 1,477 (982) 2,666
Revaluation reserve - 1,121 (8) - 1,113
General funds 28,959 185,357 (201,595) 1,404 14,125
Total unrestricted funds
before pension surplus / 31,130 187,955 (202,585) 1,404 17,904
(deficit)
- - -
Pension deficit (70,759) 70,759
Total unrestricted funds (39,629) 187,955 (131,826) 1,404 17,904
Movement in Funds
At 31
At 1 September August
2021 Incoming (Outgoing) Transfer 2022
Company £'000 £'000 £'000 £'000 £'000
Designated funds:
Current assets fund 1,966 1,477 (982) - 2,461
-
Total designated funds 1,966 1,477 (982) 2,461
General funds 20,323 105,381 (102,774) 1,367 24,297
Total unrestricted funds
before pension surplus / 22,289 106,858 (103,756) 1,367 26,758
(deficit)
- - - - -
Pension deficit
Total unrestricted funds 22,289 106,858 (103,756) 1,367 26,758
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At 31
At 1 September August
2020 Incoming (Outgoing) Transfer 2021
Group £'000 £'000 £'000 £'000 £'000
Designated funds:
Current assets fund 1,511 1,755 (1,095) - 2,171
-
Total designated funds 1,511 1,755 (1,095) 2,171
General funds 23,555 158,082 (153,034) 356 28,959
Total unrestricted funds
before pension surplus / 25,066 159,837 (154,129) 356 31,130
(deficit)
- -
Pension deficit (64,655) (6,104) (70,759)
Total unrestricted funds (39,589) 159,837 (160,233) 356 (39,629)
Movement in Funds
At 31
At 1 September August
2022 Incoming (Outgoing) Transfer 2021
Company £'000 £'000 £'000 £'000 £'000
Designated funds:
Current assets fund 1,306 1,755 (1,095) - 1,966
-
Total designated funds 1,306 1,755 (1,095) 1,966
General funds 14,425 76,111 (70,569) 356 20,323
Total unrestricted funds
before pension surplus / 15,731 77,866 (71,664) 356 22,289
(deficit)
Pension deficit (15) - 15 - -
Total unrestricted funds 15,716 77,866 (71,649) 356 22,289
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The designated fund represents the Trust’s fixed assets which are not subject to restriction.

The pension liability arises from a number of defined benefits schemes that the Trust makes payments to in respect of certain employees to whom the Transfer of Undertakings (Protection of Employment) regulations (TUPE) applied (see note 24).

The pension deficits associated with the Staffordshire Council (LGPS), West Midland Pension Fund, Greater Manchester Pension Fund Cheshire Pension Fund and Derbyshire Pension Fund are all held within Restricted Funds as they pertain to SET. The transfers comprise transfers to restricted reserves as shown in note 19.

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19. Restricted Funds

Movement in funds

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Impact of
At 1 Foreign
Group and September Currency At 31 August
Company 2021 Incoming (Outgoing) Translations Transfers 2022
£’000 £’000 £’000 £’000 £’000 £’000
DIG for Dinner 38 - - - - 38
Doncaster Borough 250 - - - - 250
Council (guarantee)
Palmer Gardens
579 (81) - (49) 449
Fund (Capital)
Palmer Gardens
- 777 (826) - 49 -
Fund (Revenue)
Employment Action 675 - - - 15 690
Centre (Capital)
Disability Action 519 - - - 295 814
Centre (Capital)
Disability Action 3 - - - (3) -
Centre (Revenue)
Shaw Trust Clamp 5 - - - - 5
Hill
Aim 4 Work
(Building Better
Opportunities) - 939 (851) - (88) -
North and East
London - Delivery
Aim 4 Work
(Building Better
Opportunities) - 549 (499) - (50) -
South London -
Delivery
Get Back on Track -
- 88 (47) - (41) -
Islington
DLF 1,696 - - - (1,495) 201
Other 3 - - - - 3
-
Total company 3,768 2,353 (2,304) (1,367) 2,450
Shaw Education
- -
125,505 106,656 (43,128) 189,033
Trust
The Integracja 52 111 (126) - (37) -
Foundation
-
Total Group 129,325 109,120 (45,558) (1,404) 191,483
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Movement in funds

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Impact of
At 1 Foreign
September Currency At 31 August
Group and Company 2020 Incoming (Outgoing) Translations Transfers 2021
£’000 £’000 £’000 £’000 £’000 £’000
The Big Lottery Fund
DIG for Dinner 38 - - - - 38
Doncaster Borough 250 - - - - 250
Council (guarantee)
Palmer Gardens Fund
547 33 (1) - - 579
(Capital)
Palmer Gardens Fund
- 821 (647) - (174) -
(Revenue)
Employment Action 674 1 - - - 675
Centre (Capital)
Disability Action 519 - - - - 519
Centre (Capital)
Disability Action 3 - - - - 3
Centre (Revenue)
Shaw Trust Clamp Hill 5 - - - - 5
Aim 4 Work (Building
Better Opportunities) - 938 (826) - (112) -
North and East
London - Delivery
Aim 4 Work (Building
Better Opportunities) - 505 (448) - (57) -
South London -
Delivery
Get Back on Track -
- 96 (83) - (13) -
Islington
DLF 1,725 - (29) - - 1,696
Other 3 - - - - 3
-
Total company 3,764 2,394 (2,034) (356) 3,768
Shaw Education Trust 118,669 101,171 (94,335) - - 125,505
The Integracja 44 101 (92) (1) - 52
Foundation
Total Group 122,477 103,666 (96,461) (1) (356) 129,325
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A full review of all restricted capital funds in Shaw Trust was undertaken in the year to ensure that the figures above match the net book value of the assets purchased with those restricted funds, including the re-life of assets of the Employment Action Centre and Disability Action Centre. A similar review was undertaken for DLF resulting in the movement above.

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The DIG for Dinner project aims to establish a sustainable community food growing initiative in a deprived area of County Durham by teaching people how to grow their own food, to produce food locally and to contribute to local food networks. The project provides practical and purposeful activities for people with learning disabilities and mental ill health as well as volunteering opportunities for local people, school children and community groups. Funding has also been received from Rothley Trust and Hadrian Trust.

The £250k for the Doncaster Borough Council guarantee relates to a security that has been pledged as a guarantee provided by the Trust’s bankers to Doncaster Borough Council in respect of the Trust’s obligations to the South Yorkshire Pension Scheme.

Palmer Gardens is a vocational training centre, and the restricted capital fund comprises £449,000 (2021: £579,000) of re-valued tangible fixed assets relating to the construction of the original training centre and later expansion of the facilities. Depreciation is charged in the normal course of business and is initially charged to unrestricted costs and transferred here to reduce the capital value of the asset.

The Employment Action Centre (EAC) provides, within a multi-functional resource centre, a holistic approach to the employment needs of people living in Middlesbrough who are disabled and disadvantaged. The fund relates to the construction of the centre which was carried out with contributions from Big Lottery Fund, European Regional Development Fund, Middlesbrough Council, and the West Middlesbrough Neighbourhood Trust. Depreciation is charged in the normal course of business and is initially charged to unrestricted costs and transferred here to reduce the capital value of the asset.

The Disability Action Centre (DAC) is a highly innovative, multi-function centre, which integrates independent living services with training, employment, and disability consultancy services. The fund relates to the construction of the centre. Depreciation is charged in the normal course of business and is initially charged to unrestricted costs and transferred here to reduce the capital value

of the asset. Revenue is not affected so the balance was written off in the year.

Shaw Trust Clamp Hill received donations to contribute towards client activities.

Aim4Work is funded by the European Social Fund and The National Lottery Community Fund under the Building Better Opportunities programme and forms part of their commitment to invest in local projects to tackle the root causes of poverty, promote social inclusion and drive jobs and growth. A portion of grant has been transfered to unrestricted reserves to cover the central overheads and generated surplus which is in-line with grant contractual terms and conditions.

Get Back on Track is a free service offering advice on employment rights to anybody in employment that lives in Islington or is registered with an Islington GP practice and is currently signed off work under a “Fit Note” or medical certificate. Funding from commissioner is restricted to the main cause of the project. A portion of grant has been transferred to unrestricted reserves to cover the central overheads and generated surplus which is in-line with grant contractual terms and conditions.

Disabled Living Foundation (DLF) restricted reserves were acquired on merger in November 2014 and are to be utilised for DLF related activity only. This is reassessed on an annual basis as to the outstanding balance, hence the transfer.

The funds received by The Shaw Education Trust from the Department of Education can only be used to run the organisation and the academies that form part of The Shaw Education Trust.

The funds held by The Integracja Foundation are treated as restricted funds because those funds can only be used for charitable purposes, although this has now ceased.

20. Analysis of net assets between funds

----- Start of picture text -----
Unrestricted
(including Total funds
Designated pension deficit) Restricted 2022
Group £’000 £’000 £’000 £’000
Fund balances at 1 September 2021
are represented by:
- -
Intangible fixed assets 1,756 1,756
-
Tangible fixed assets 10,915 188,411 199,326
- - - -
Share of net assets of joint ventures
- -
Investments in financial securities 4,823 4,823
Current assets 2,666 62,334 31,007 96,007
Current liabilities - (58,831) (12,722) (71,553)
-
Long-term liabilities (412) (622) (1,034)
- -
Provisions for liabilities and charges (5,347) (5,347)
- -
Pension deficit (14,591) (14,591)
Total net assets at 31 August 2022 2,666 15,238 191,483 209,387
Unrestricted
(including Total funds
Designated pension surplus) Restricted 2022
Company £’000 £’000 £’000 £’000
Fund balances at 1 September 2021
are represented by:
Intangible fixed assets - 240 - 240
-
Tangible fixed assets 2,452 1,953 4,405
- -
Investment in joint ventures 21,355 21,355
- -
Investments in financial securities 4,823 4,823
Current assets 2,461 43,530 497 46,488
Current liabilities - (43,747) - (43,747)
- - - -
Long-term liabilities
- -
Provisions for liabilities and charges (4,356) (4,356)
- - - -
Pension deficit
Total net assets at 31 August 2022 2,461 24,297 2,450 29,208
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141

		Unrestricted
2021 Comparison	Designated	(including pension defcit)	Restricted	Total funds 2021
Group	£’000	£’000	£’000	£’000
Fund balances at 1 September 2020 are represented by: Intangible fxed assets Tangible fxed assets Share of net assets of joint ventures Current assets Current liabilities Long-term liabilities Provisions for liabilities and charges Pension defcit	- - - 2,171 - - - -	7,434 5,792 - 79,666 (62,153) (549) (1,231) (70,759)	1 181,778 52 26,314 (9,366) (744) - (68,710)	7,435 187,570 52 108,151 (71,519) (1,293) (1,231) (139,469)
Total net assets at 31 August 2021	2,171	(41,800)	129,325	89,696

		Unrestricted		Total
		(including pension		funds
2021 Comparison	Designated	surplus)	Restricted	2021
Company £’000 Fund balances at 1 September 2020 are represented by: Intangible fxed assets - Tangible fxed assets - Investment in joint ventures - Current assets 1,966 Current liabilities - Long-term liabilities - Provisions for liabilities and charges - Pension defcit -		£’000 446 1,693 19,355 31,865 (32,514) - (522) -	£’000 - 1,773 - 1,995 - - - -	£’000 446 3,466 19,355 35,826 (32,514) - (522) -
Total net assets at 31 August 2021	1,966	20,323	3,768	26,057

21. Taxation

The Trust has no liability to corporation tax as it satisfies the criteria for its income and gains to be exempt from corporation tax / corporate taxation. There is no similar exemption for VAT.

Members of the Group without charitable status are charged corporation tax on their income and gains.

Deferred tax assets recognised by Group companies are shown in note 14.

Tax charges for the year are:

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2022 2021
£’000 £’000
Total current tax - 27
Deferred tax
Origination and reversal of timing differences 10,362 1,558
Adjustment in respect of prior periods 629 (972)
-
Impact of changes in tax rates (4,251)
Total deferred tax 10,991 (3,665)
Tax on profit 10,991 (3,638)
Other comprehensive income items 7,379 (2,710)
Total tax charge (See note 2) 18,370 (6,348)
2022 2021
£’000 £’000
Profit before taxation 3,883 2,283
Profit before tax multiplied by the UK Corporation Tax rate of 19% 738 434
Expenses not deductible for tax purposes 56 117
-
Qualifying charitable donations (768)
Losses - -
Adjustments in respect of prior periods (current tax) 643 (1)
Adjustments in respect of prior periods (deferred tax) 10,322 17
-
Other timing differences (4,205)
Tax on profit 10,991 (3,638)
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22. Financial commitments

At 31 August 2022 the Group and Company had future minimum lease payments under noncancellable operating leases expiring as follows:

cancellable operating leases expiring as follows:
	Property	Other
Group	2022 2021	2022	2021
	£’000 £’000	£’000	£’000
Within one year Between one and fve years After fve years Total Company Within one year Between one and fve years After fve years Total	3,454 2,836 4,583 5,356 1,388 958 9,425 9,150 Property 2022 2021 £’000 £’000 1,430 1,302 592 1,559 36 52 2,058 2,913	320 207 280 367 - - 600 574 Other 2022 2021 £’000 £’000 65 41 26 38 - - 91 79

Other operating leases relate to motor vehicles and computer equipment.

23. Capital commitments

As at 31 August 2022 the Trust had capital commitments of £1,715k (2021: £1,306k).

24. Pension commitments

The Group had admission agreements, through Prospects Services, with the London Pensions Fund Authority, the City of Bradford Metropolitan District Council responsible for the West Yorkshire Pension Fund, Gloucestershire County Council, Northamptonshire County Council and Wolverhampton City Council responsible for the West Midlands Metropolitan Authorities Pension Fund and Leicestershire County Council all of whom administer funds as part of the Local Government Pension Scheme (LGPS). The LGPS is a multi-employer statutory defined benefit pension scheme, and the scheme members have a statutory right to their accrued benefits.

As noted in note 28, post year end the exit agreement with the London Pensions Fund Authority was exercised and the pension scheme handed back to the provider.

The Trust also makes payments to the South Yorkshire Pension Scheme and the Platinum multiemployer passported scheme.

Academy Trust’s employees belong to two principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff. Both are multi-employer defined benefit schemes.

in academies. All teachers have the option to opt-out of the TPS following enrolment. The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The five local government pension schemes (LGPS) are operated by Staffordshire Council, the West Midland Pension Fund, Greater Manchester Pension Fund, Cheshire County Council Fund and Derbyshire Pension Fund. Derbyshire Pension Fund is new this year. Those schemes are in respect of certain employees to whom The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) applied. The schemes are defined benefit schemes and the assets are held in separately administered funds. The schemes are multi-employer schemes, but it is possible to identify the Trust’s share of the Schemes’ assets and liabilities and these are separately disclosed below.

The Group’s assessed share of the fair value of the assets of the schemes were:

	Total Share	Present value		Net
Year ended 31 August 2022	of scheme assets	of scheme liabilities	Asset ceiling	pension defcit
	£’000	£’000	£’000	£’000
South Yorkshire Pension Scheme (The Shaw Trust) Platinum Pension Scheme (The Shaw Trust) Stafordshire Council (LGPS), West Midland Pension Fund, Greater Manchester Pension Fund, Cheshire County Council Fund and Derbyshire Pension Fund (The Shaw Education Trust) London Pensions Fund Authority, the City of Bradford Metropolitan District Council, Gloucestershire County Council, Northamptonshire County Council, Wolverhampton City Council and Leicestershire County Council (Prospects Services) At 31 August 2022	3,310 1,056 62,663 146,572 213,601	(2,362) (816) (77,254) (138,114) (218,546)	(948) (240) - (8,458) **(9,646) **	- - (14,591) - (14,591)

	Total Share	Present value		Net
Year ended 31 August 2021	of scheme assets	of scheme liabilities	Asset ceiling	pension defcit
	£’000	£’000	£’000	£’000
South Yorkshire Pension Scheme (The Shaw Trust) Platinum Pension Scheme (The Shaw Trust) London Pensions Fund Authority, the City of Bradford Metropolitan District Council, Gloucestershire County Council, Northamptonshire County Council, Wolverhampton City Council and Leicestershire County Council (Prospects Services)	3,512 1,530 57,046 148,820	(3,165) (1,316) (125,756) (217,362)	(347) (214) - (2,217)	- - (68,710) (70,759)
At 31 August 2021	210,908	(347,599)	(2,778)	(139,469)

The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers

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Asset
Group Assets Liabilities ceiling 2022 Total
£’000 £’000 £’000 £’000
Deficit in the scheme as at 1 September 2021 210,908 (347,599) (2,778) (139,469)
-
Acquired in year 2,149 (4,262) (2,113)
- -
Administration expenses (146) (146)
-
Benefits paid (5,563) 5,442 (121)
- -
Employer contributions 5,677 5,677
- -
Contribution from employees 1,270 (1,270)
Current service cost (77) (12,473) - (12,550)
- -
Past service costs including curtailments (52) (52)
Settlements - - - -
-
Interest income / (expense) 3,497 (5,816) (2,319)
- -
Change in asset ceiling (6,868) (6,868)
Re-measurement gains /
losses
- Actuarial loss (2,715) 146,412 - 143,697
- Other assumptions (708) 1,072 - 364
- Return on plan assets excluding interest income (691) - - (691)
Deficit in the scheme as at 31 August 2022 213,601 (218,546) (9,646) (14,591)
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Company

Year ended 31 August 2022

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|||||| |---|---|---|---|---| |Present| |value of|Net pension| |Total Share of|scheme|Asset|(deficit) /| |scheme assets|liabilities|ceiling|surplus| |£’000|£’000|£’000|£’000| |South Yorkshire Pension Scheme|3,310|(2,362)|(948)|-| |Platinum Pension Scheme|1,056|(816)|(240)|-| |-| |At 31 August 2022|4,366|(3,178)|(1,188)| |Present| |value of|Net pension| |Total Share of|scheme|Asset|(deficit) /| |Year ended 31 August 2021|scheme assets|liabilities|ceiling|surplus| |£’000|£’000|£’000|£’000| |South Yorkshire Pension Scheme|3,512|(3,165)|(347)|-| |Platinum Pension Scheme|1,530|(1,316)|(214)|-| |-| |At 31 August 2021|5,042|(4,481)|(561)|

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2021 comparatives have been restated for the effect of an Actuarial re-measurement of the Defined Benefits pension scheme.

South Yorkshire Pension Scheme

----- Start of picture text -----
2022 2021
Expected rate of salary increases 4.35% 3.95%
Expected rate of increase of pensions in payments 3.35% 2.8%
Rate of inflation 3.35% 2.7%
Discount rate 4.25% 1.7%
----- End of picture text -----

The mortality assumptions used were as follows:

----- Start of picture text -----
|||| |---|---|---| |Longevity at age 65 for current pensioners:| |- Men|87.6|87.5| |- Women|90.4|90.3| |Longevity at 65 for future pensioners:| |- Men|89.1|89.0| |- Women|92.3|92.2|

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Reconciliation of scheme assets and liabilities:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Asset| |Assets|Liabilities|ceiling|Total|2021| |£’000|£’000|£’000|£’000|£’000| |-| |Deficit in the scheme as at 1 September 2021|3,512|(3,165)|(347)|(56)| |Benefits paid|(147)|148|-|1|-| |Employer contributions|3|(3)|-|-|-| |Contribution from employees|-|-|-|-|1| |Current service cost|-|(23)|-|(23)|(22)| |Past service cost|-|-|-|-|-| |Interest income / (expense)|58|(53)|-|5|(1)| |-|-| |Change in asset ceiling|(601)|(601)|(347)| |Re-measurement gains / losses| |- Actuarial gain|-|748|-|748|489| |-|-| |- Other assumptions|(14)|(14)|(64)| |-|-|-| |- Return on plan assets excluding interest income|(116)|(116)| |-|-| |Surplus in the scheme as at 31 August 2022|3,310|(2,362)|(948)|

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147

----- Start of picture text -----
Total cost recognised as expense: 2022 2021
£’000 £’000
Current service cost 23 22
Interest (income) / cost (5) 1
18 23
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----- Start of picture text -----
|||| |---|---|---| |Value at 31|Value at 31| |August 2022|August 2021| |£’000|£’000| |Equities|2,317|1,700| |Bonds|662|485| |Gilts|-|260| |Property|298|302| |Cash|33|35| |Other|-|730| |Total market value of assets|3,310|3,512| |Present value of scheme liabilities|(2,362)|(3,165)| |Scheme surplus|948|347| |Asset ceiling|(948)|(347)| |-|-| |Net pension deficit|

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The return on the plan assets was:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£’000|£’000| |Interest income|58|51| |-| |Return on pension scheme assets less interest income|(116)| |Total return on plan assets|(58)|51|

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Platinum Pension Scheme

The Trust joined the Platinum multi-employer passported pension scheme in October 2010 in order to accommodate the pension arrangements for staff whose employment transferred to the Trust under TUPE as a result of the Trust being awarded the Work Choice contract. A formal actuarial valuation was carried out as at 31 December 2016. The results of that valuation have been projected to 31 March 2020 with allowance for the payroll and benefit information which have been provided and using the assumptions set out below. The figures in the following disclosure were measured using the Projected Unit Method. The major assumptions used by the actuary for the last two years are:

----- Start of picture text -----
2022 2021
Expected rate of salary increases N/A N/A
Expected rate of increase of pensions in payments 3.30% 3.15%
Rate of inflation 2.30% 2.15%
Discount rate 4.20% 1.70%
----- End of picture text -----

The mortality assumptions used were as follows:

Longevity at age 65 for current pensioners:

----- Start of picture text -----
|||| |---|---|---| |- Men|85.9|87.2| |- Women|88.8|89.5| |Longevity at 65 for future pensioners:| |- Men|87.1|88.5| |- Women|90.2|90.9|

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Reconciliation of scheme assets and liabilities:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Asset| |Assets|Liabilities|ceiling|Total|2021| |£’000|£’000|£’000|£’000|£’000| |Deficit in the scheme as at 1 September|-|-| |1,530|(1,316)|(214)| |2021 (restated)| |-|-| |Administration expenses|(45)|(45)|(22)| |Benefits paid|(34)|34|-|-|-| |Employer contributions|44|-|-|44|100| |Interest income / (expense)|26|(22)|-|4|1| |-|-| |Change in asset ceiling|(26)|(26)|(173)| |Re-measurement gains / losses| |- Actuarial gain / (loss)|-|488|-|488|(106)| |- Return on plan assets excluding interest|(465)|-|-|(465)|200| |income| |-|-| |Surplus in the scheme as at 31 August 2022|1,056|(816)|(240)|

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149

The Shaw Trust’s assessed share of the fair value of the assets of this scheme were:

Staffordshire Council (LPGS), West Midland Pension Fund, Greater Manchester Pension Fund, Cheshire Pension Fund and Derbyshire Pension Fund form the pension scheme for The Shaw Education Trust.

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2021 Total
2022 Total Restated
£’000 £’000
Equities - 9
Bonds 520 737
Gilts 536 780
Other - 4
Total market value of assets 1,056 1,530
Present value of scheme liabilities (816) (1,316)
Scheme surplus 240 214
Asset ceiling (240) (214)
- -
Total pension surplus
The return on the plan assets was:
2022 2021
£’000 £’000
Interest income 26 20
Return on pension scheme assets less interest income (465) 200
Total return on plan assets (439) 220
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(The Shaw Education Trust Pension Schemes)

Staffordshire Council (LGPS)

Principal actuarial assumptions:

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Expected rate of salary increases 3.45% 3.30%
Expected rate of increase of pensions in payments 3.05% 2.90%
Rate of inflation 3.05% 2.90%
Discount rate 4,25% 1.65%
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The mortality assumptions used were as follows:

Longevity at age 65 for current pensioners: - Men - Women Longevity at 65 for future pensioners:	86.2 88.8	86.4 89.0
- Men	87.2	87.5
- Women	90.5	90.7

West Midland Pension Fund

Principal actuarial assumptions:

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Expected rate of salary increases 4.05% 3.90%
Expected rate of increase of pensions in payments 3.05% 2.90%
Rate of inflation 3.05% 2.90%
Discount rate 4.25% 1.65%
The mortality assumptions used were as follows:
Longevity at age 65 for current pensioners:
- Men 86.2 86.6
- Women 88.6 89.0
Longevity at 65 for future pensioners:
- Men 87.9 88.4
- Women 90.4 90.8
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Greater Manchester Pension Fund

Principal actuarial assumptions:

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2022 2021
Expected rate of salary increases 3.80% 3.65%
Expected rate of increase of pensions in payments 3.05% 2.90%
Rate of inflation 3.05% 2.90%
Discount rate 4.25% 1.65%
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The mortality assumptions used were as follows:

Longevity at age 65 for current pensioners: - Men - Women Longevity at 65 for future pensioners:	85.3 88.2	85.5 88.3
- Men	86.6	86.9
- Women	90.1	90.3

Cheshire Pension Fund

Principal actuarial assumptions:

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Expected rate of salary increases 3.75% 3.60%
Expected rate of increase of pensions in payments 3.05% 2.90%
Rate of inflation 3.05% 2.90%
Discount rate 4.25% 1.65%
The mortality assumptions used were as follows:
Longevity at age 65 for current pensioners:
- Men 86.2 86.4
- Women 88.8 89.0
Longevity at 65 for future pensioners:
- Men 87.1 87.4
- Women 90.5 90.7
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Derbyshire Pension Fund

Principal actuarial assumptions:

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2022 2021
Expected rate of salary increases 3.75% 3.60%
Expected rate of increase of pensions in payments 3.05% 3.60%
Rate of inflation 3.05% 2.90%
Discount rate 4.25% 1.65%
The mortality assumptions used were as follows:
Longevity at age 65 for current pensioners:
- Men 86.1 86.3
- Women 88.8 88.9
Longevity at 65 for future pensioners:
- Men 87.2 87.5
- Women 90.6 90.8
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Share of assets in the above schemes (Staffordshire Council (LGPS), West Midland Pension Fund, Greater Manchester Pension Fund, Cheshire Pension Fund and Derbyshire Pension Fund) was:

	Value at 31	Value at 31
	August 2022	August 2021
	£’000	£’000
Equities Corporate bonds Property Cash and other liquid assets Other assets Total market value of assets Present value of scheme liabilities	43,392 10,956 5,692 2,623 - 62,663 (77,254)	38,684 11,081 4,086 2,289 905 57,045 (68,710)
Net pension defcit	(14,591)	(11,665)

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Total cost recognised as an expense:

Total cost recognised as an expense:
Value at 31	Value at 31
August 2022	August 2021
£’000	£’000
Current service cost 11,407 Past service cost 52 Interest income (994) Interest cost 2,201 Total operating charge 12,666	8,098 11 (765) 1,650 8,994

London Pensions Fund Authority, the City of Bradford Metropolitan District Council, Gloucestershire County Council, Northamptonshire County Council, Wolverhampton City Council and Leicestershire County Council (Prospects Services Pension Schemes)

The actuarial valuations for the Company have been updated to 31 August 2022 by qualified independent actuaries. The major assumptions used across the schemes described above, were:

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2022 2021
Expected rate of salary increases * 3.35 – 4.20% 2.8 – 2.9%
Expected rate of increase of pensions in payments 3.05 – 3.20% 3.2 – 3.9%
Rate of inflation 3.00 – 3.20% 1.9 – 2.0%
Discount rate 4.20 – 4.25% 1.6 – 1.65%
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PSS = Promotional salary scale

The mortality assumptions used were as follows: Longevity at age 65 for current pensioners: - Men - Women Longevity at 65 for future pensioners:	85.9 – 86.7 86.8 – 89.1	87.7 – 87.0 89.0 – 89.4
- Men	87.1 – 88.1	87.9 – 88.7
- Women	90.3 – 90.8	90.1 – 91.1

Reconciliation of scheme assets and liabilities prior year:

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Asset Total Total
Assets Liabilities ceiling 2022 2021
£’000 £’000 £’000 £’000 £’000
Deficit in the scheme as at
148,820 (217,362) (2,217) (70,759) (64,640)
1 September 2021
- -
Administration expenses (146) (146) (197)
- -
Benefits paid (4,834) 4,712 (122)
Employer contributions 1,038 (2) - 1,036 695
Contribution from employees 125 (120) - 5 -
Current service cost (32) (1,043) - (1,075) (897)
Past service cost - - - - -
-
Interest income / (expense) 2,419 (3,540) (1,121) (1,044)
Change in asset ceiling - - (6,241) (6,241) 3
Re-measurement gains / losses
- -
- Actuarial gain / (loss) 78,155 78,155 (20,754)
- Other assumption (708) 1,086 378 1,087
-
- Return on plan assets excluding -
(110) (110) 14,988
interest income -
-
Surplus in the scheme as at 31 August 2022 146,572 (138,114) (8,458) (70,759)
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The actual return on plan assets over the period ending 31 August 2022 was £12,341,000 (2021: £13,944,000).

• London Pensions Fund Authority and Platinum schemes are now closed to active members and therefore the rate on increase in salaries is zero.

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25. Business combinations

Academy conversions: The Shaw Education Trust (SET)

SET was incorporated as a wholly owned subsidiary on 2 June 2014 as a Multi Academy Trust to effect the sponsorship of three special schools / academies in Staffordshire.

During the year a further two schools were converted to SET (2020–21: three) The figures are shown in the following table.

• 1) Moorhill Primary School – transferred 1 April 2022.

• 2) Redhill Primary School – transferred 1 April 2022.

No cash consideration has been paid to the academies, and so no goodwill adjustments are required. The book values of the assets and liabilities were judged to be at fair value and had been treated in accordance with the Group’s accounting principles, therefore no adjustments were required, and the financial activity of SET has been fully consolidated into the Group financial statements from their date of transfer.

The tangible fixed assets relate to property which was valued at the point of transfer and recorded as a donation received in the Group Statement of Financial Activities.

The net assets acquired have been recorded as a donation received in the Group Statement of Financial Activities. This relates to The Shaw Education Trust (SET).

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2022 Total 2021 Total
£’000 £’000
Fixed assets - tangible fixed assets 7,404 21,421
Cash at bank 445 1,460
- -
Liabilities < one year
Pension liability (2,113) (3,500)
Net assets acquired 5,736 19,381
- -
Acquisition Cost
- -
Goodwill arising from acquisition
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26. Related Party Transactions

All related party transactions between regulated and non-regulated entities are disclosed below.

All related party transactions with third parties are disclosed below.

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Intra-Group Balances 2022 2021
£’000 £’000
Forth Sector (2,680) (2,464)
Forth Sector Development Limited 269 196
Homes2Inspire Limited (15,786) (12,774)
Ixion CG Limited 0 1
Ixion Holdings (Contracts) Limited 23 (633)
Ixion Social Enterprise Limited 623 623
Optimus Education Limited (1,017) (1,780)
Prospects Education Services Limited (1,887) (1,885)
Prospects Group (2011) Limited (4,785) (4,783)
Prospects Services 9,478 16,228
The Shaw Trust Limited 16,045 8,620
Shaw Trust Services Limited (283) (1,349)
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The Trust requires all Trustees to complete a Declaration of Interest. The table below shows all the related parties that have been disclosed and the value of both income and expenditure that the Trust has incurred with these bodies during the period ended 31 August 2022. These transactions were as a result of normal business activity.

	Value of	Outstanding	Value of	Outstanding
	revenue	revenue	expenditure	expenditure
	received from	balance at 31	made to	balance at 31
Related Party	Related Party	August 2022	Related Party	August 2022
Upton Primary School Business Services Association ERSA (UK) Ltd	238 - -	- - -	- 12,607 11,000	- - -
Social Enterprise Coalition CIC	-	-	62,800	-

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27. Financial Instruments

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Group Company
Note 2022 2021 2022 2021
£’000 £’000 £’000 £’000
Financial Assets
Trade debtors 13 15,597 20,350 5,070 9,737
Intercompany - - 16.045 8,620
Other debtors 13 723 291 118 59
Total Financial Assets 16,320 20,641 21,233 18,416
Financial Liabilities
Trade creditors 16 4,661 5,714 1,571 1,640
Other creditors 16 8,333 7,122 6,829 4,227
Loans 16/16b 1,285 3,540 - 2,000
Accruals 16 12,307 11,578 4,396 3,493
Total Financial Liabilities 26,586 27,954 12,796 11,360
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28. Post Balance Sheet Events

The impact of Covid-19 continued to affect some areas of the business, in particular Enterprise and Conferencing, although trading has returned back to pre-Covid levels in most areas, but with a backdrop of challenging economic conditions. Post year end the Trust received agreement and receipt of a total of £2.5m in respect of its Business Interruption Insurance policy it had held with MS Amlin. This covered a proportion of the losses incurred during the policy period which included the first few months of the pandemic.

In addition, effective 21 February 2023, Prospects Services, one of the Companies in the Group, exercised its right to terminate the funding agreement in respect of the London Pension Fund Authority (LPFA) pension due to the scheme becoming fully funded on a minimum risk valuation basis. Previously, in July 2020, an agreement (the ‘funding agreement’) had been reached with the LPFA to close the scheme to future accrual with a repayment plan agreed, and all active members transferred to The Shaw Trust defined contribution scheme. The assets and liabilities totalling £115m and £113m respectively at 31 August 2022 were handed back to the LPFA, with no detriment to the deferred members of the scheme, whose benefits remained unchanged.

Further restructuring resulted in the exiting of the Integracja Foundation, the joint venture in Poland, effective 31 August 2022. As a result, net assets of £52,000 have been removed from the balance sheet at year end.

Post year end a further two properties were acquired in Homes2Inspire as part of their strategy of growth.

Statutory and administrative details of the charity, the Trustees and advisers.

Statutory and administrative details of the Shaw Trust Limited

(Registered Company Number: 01744121, Registered Charity Number England and Wales: 287785, Registered Charity Number Scotland: SC039856).

Trustees

Sir Kenneth Olisa OBE, Chairman (resigned 11 May 2023)

Paul Baldwin *[†] ~

Olly Benzecry (appointed 22 February 2023) Diane Côté ~ *

Audrey Coutinho * ^

Deborah Dorman[†] (appointed 3 February 2022) Chanelle Gray[†] (resigned 3 February 2022) Mike Hawker * (resigned 3 February 2022) Annamarie Hassall MBE

Peter Holmes • (resigned 3 February 2022)

Paul McGee *

Jeremy Moore CB * • ^ (resigned 21 April 2023) John Norman[†] (resigned 3 February 2022) Dr Mike Nussbaum[†] •

Lara Oyesanya ^[†]

Kalm Paul-Christian ^ (appointed 3 February 2022)

Stephen Pegge ~

Steve Shaw[†] (appointed 3 February 2022) James Stewart ~[†]

• ^ Member of the Commercial and Performance Committee

• ~ Member of the Finance Committee

• Member of the Audit and Risk Committee

• Member of the HR Committee

• Member of the Performance and Investment Committee

Executive Management Team

Chris Luck CB MBE Group Chief Executive Officer

Stephen King Chief Financial Officer

Scott Miller Chief Operating Officer

Mark Earl Chief People Officer

Richard Clifton Chief Commercial Officer

Jo Morgan Chief Executive Officer – The Shaw Education Trust

Company Secretary

Carol McKinley

Registered Office

Black Country House, Rounds Green Road, Oldbury, West Midlands, B69 2DG

Independent Auditors

Crowe U.K. LLP 2nd Floor, 55 Ludgate Hill, London, EC4M 7JW

Bankers

National Westminster Bank 9th Floor, 280 Bishopsgate, London EC2M 4RB

Solicitors

Brabners LLP Solicitors

55 King Street, Manchester M2 4LQ

(The Performance and Investment Committee split its responsibilities between the newly created Commercial and Performance Committee and the Finance Committee).

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