Nearly £150m has already gone to various causes, including armed-forces and search-and-rescue charities, because of banks being fined for manipulation of the Libor rate – an interest rate charged by banks for short-term loans to each other.
The Uniformed Youth Social Action Fund will initially help 14 organisations, which won the funding after a competitive process, to increase by 15,000 the number of places available for disadvantaged young people to join uniformed groups across the UK.
The fund will support of the wider Step Up to Serve campaign, established to double by 2020 the number of young people who are involved in social action – there are currently 1.7 million.
A second funding round from the £10m pot will be launched in the autumn, enabling uniformed youth groups to pilot new and innovative approaches to working with deprived and hard-to-reach communities, a statement from the Office for Civil Society said.
At an event in London held yesterday to mark the launch of the new fund, Brooks Newmark, the Minister for Civil Society, told Third Sector: "The first step is to go through the more traditional routes, but maybe the second step is to find perhaps more innovative ways to tackle some of the more challenging problems we have with young people today.
"The message is that when the government's getting money from people who have done bad deeds, such as the Libor scandal, that it's not going into a black hole – there's something very focused and very tangible that the money's going into."