Foreword
Purpose Coalition & Virgin Money 2023 Social Value Impact Report 1
Foreword
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Contents
Contents 0. Forewords:
Rt Hon Justine Greening, Chair, Purpose Coalition & Former Education Secretary James Peirson, General Counsel and Purpose Officer of Virgin Money 1. Introduction: 1.1 Introduction to Virgin Money 1.2 The Journey to the Levelling Up Goals 2. Virgin Money’s activities mapped against the Levelling Up Goals 3. Analysis 4. Future Ambitions
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Foreword
0.1 Foreword
This second Report updates that work, against the backdrop of a cost-of-living crisis which
makes Virgin Money’s purpose even more relevant. The impact of the crisis will be felt hardest by the
most disadvantaged but it has become increasingly clear over the last year that its effects will be
experienced by almost everyone. The role of an organisation which seeks to promote financial
inclusion and financial stability is therefore more important than ever.
It shows how Virgin Money is continuing to make
a significant impact against the framework of the Purpose Goals. Its ambition to play a role in early
financial inclusion and education to foster financial
resilience across the UK is meeting Goal 2 Successful School Years. Its Make £5 Grow scheme for primary
schools is a crucial part of its financial education and proactive outreach approach and has seen a huge
uptake over the last year. Goal 7, Widening access to savings and credit sees a focus on shining a light on and addressing and mitigating the impacts of the
poverty premium. Its extensive research on how the real challenges people are facing as a result of the
Rt Hon Justine Greening
Chair, Purpose Coalition & Former Education Secretary
The best organisations have a very clear sense of
purpose. It’s laser-focused on the kind of organisation
they aim to be, what they want to accomplish and how best to achieve that. They also have a clear sense of identity – a recognition of what they can do in their
particular sector and how they can use that profile to make a difference.
Virgin Money is such an organisation. Its purpose of
will include digital inclusion. It is meeting Goal 8 Good health and wellbeing through its ground-breaking
A Life More Virgin initiative which helps its colleagues
to live their best lives by offering flexibility on how,
when and where they work. Its success is evidenced in a rise in job applications, with an increase in
applicants from diverse backgrounds, demonstrating the appeal of its inclusive approach. Its commitment to Goal 14 Achieve equity through diversity and
inclusion ensures that all applicants and colleagues progress fairly through the recruitment process to
ensure that it has a robust and diverse talent pipeline, the mark of a forward-looking organisation.
‘Making You Happier About Money’ delivers a statement
This Report shows how Virgin Money and its leadership
organisation and out. Its brand recognition and
strategically delivering social value. Not content
of intent and guides everything it does, inside the
geographical reach means it has the potential to play a genuine role in driving positive change across the
country and closing the opportunity gap. It is a valued Purpose Coalition partner and we have already
developed its first Impact Report in 2022 to assess
what it was already doing and consider how it could
go even further.
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cost-of-living crisis is informing future action which
team have grasped the nettle in producing and
with resting on its laurels, it shows a clear ambition to keep moving forward with measurable targets and evaluation to assess its progress. It wants to
go even further – and it can – demonstrating how
a truly purpose-led company adapts to changing
economic and social circumstances while retaining its commitment to positive change.
Foreword
0.2 James Peirson
General Counsel and Purpose Officer, Virgin Money
2023 has been a difficult year for many, with almost all of
us having been impacted in some way by higher interest rates, rising inflation and an increased cost of living.
In this environment, our purpose of Making You Happier
About Money, has been more important than ever for our colleagues, customers and the communities we serve.
The work of the Purpose Coalition has been invaluable to us as we have developed strategies to support people in this difficult economic environment. As well as providing the
bank with recommendations on how we can improve and
advice on best practice from other Coalition members, the
Purpose Coalition has also helped us to celebrate and raise awareness of what we have done well.
This new report shows just how far Virgin Money has come since we first started working with the Coalition in 2021.
For colleagues, it highlights the impact that our leading
flexible working strategy, A Life More Virgin has had on our
business. Since the launch of A Life More Virgin applications to the bank have increased by nearly 300%, attrition has
dropped by a third and we have some powerful colleague
And finally for communities, it is fantastic to see the
Coalition reflect on the huge strides the bank has made since the 2022 report to more closely align our Purpose
to our community strategy. We worked hard to develop criteria that would ensure that our next charity partner
would help the bank in its ambition to improve people’s relationship with money. This included inviting our
colleagues, many of whom will raise money or volunteer
for our chosen charity, to have the final and most crucial say on the next charity partnership through a vote.
stories about the positive impact our fully flexible approach
In addition, the report highlights the enhancements
however, also rightly point out that given we have been an
programme “Make £5 Grow” including the digitisation
has had on wellbeing and family life. The Coalition,
early adopter of fully flexible working, we could do more to share our findings and insights with others, which is
something we will reflect and act on in the coming months. For customers, the report singles out the work that Virgin Money has done to tackle the poverty premium and the
linked issue of digital exclusion through the bank’s thought leadership and community partnerships with the Centre
for Social Justice, Turn2us and the Good Things Foundation. In particular, it highlights Virgin Money’s achievement in
Virgin Money has made to our primary school
of the resources making it easier for teachers to access. They also praised how we have involved colleagues as
Ambassadors for the programme, who have visited local schools and helped to engage and energise pupils. We agree with the recommendation to look at how we can
expand the programme to engage different age groups of children and further deepen the financial education element and will be exploring opportunities to do both those things in 2024.
turning high-street stores into Databanks whereby anyone
A year on from the first report, it is encouraging to see
get online. The Coalition, however, think we can go further
must continue to challenge ourselves to do more. That
in data poverty can come into a store for a free SIM card to by better aligning Virgin Money’s and the Virgin Money
Foundation’s activity in communities and continuing to
evolve our existing programmes. This will be a key focus for the bank in 2024.
the clear progress that has been made. However, we is why the recommendations from this report are so
valuable in helping us to make Making You Happier About Money central to our colleagues, customer offering and community engagement.
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Foreword
1.0 Virgin Money and its role in the Purpose Agenda
Since the launch of its 2022 Impact Report, Virgin Money has further embedded its purpose amidst a time
of immense financial hardship for its customers, its colleagues and the communities it serves.
The cost-of-living crisis and inflationary pressures are
beginning to wane, however the effects will continue to
impact the most vulnerable and under-resourced groups
- stunting social mobility across the country. The relevance of Virgin Money and its underpinning purpose of ‘Making You Happier About Money’ has never been more crucial. 1.1 Vision Virgin Money’s strategic ambition is to become the
best digital bank in the UK. In achieving this goal, the
organisation recognises its responsibility in promoting digital inclusion for the communities it serves and in
delivering financial education and inclusion programmes for its most vulnerable customers. Virgin Money is also
resolute in its commitment to being a proactive, fair and equitable employer that creates an environment where colleagues are happy and motivated at work.
In alignment with its banking principles, Virgin Money
adopts a straightforward, heartfelt and relevant approach to ESG. It prioritises transparency and simplicity in its principles - using them to guide and shape its daily business operations.
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Introduction
The organisation is committed to continually reviewing its social impact agenda and its deliverance of social value against the Purpose Goals
ESG considerations are deeply integrated into Virgin
Virgin Money’s Board also plays a pivotal role in steering
structures, targets, and strategic and financial planning.
from the Head of Investor Relations and other subject
Money’s decision-making processes, governance
It firmly believes that ESG and social value - akin to its
overarching purpose - are integral to every individual’s role and responsibility within the organisation.
the ESG strategy. The Board receives periodic updates
matter experts throughout the year on ESG topics, helping to educate the Board on the Group’s climate change
ambitions and the key factors that need to be considered to enable the Group to achieve its desired outcomes.
This approach will future-proof the organisation,
External support and insight is drawn upon to inform the
ensuring it is truly sustainable in the long run by
Board updates and will continue to be valuable as the
empowering colleagues and reinforcing the leading
Group’s ESG strategy evolves.
approach to social value. Virgin Money has also
strengthened its focus on climate-related measures,
The organisation is committed to continually reviewing its
a significant 15 per cent of the overall Long-Term
against the Purpose Goals - building on its best practice
with the ESG scorecard continuing to account for
social impact agenda and its deliverance of social value
Incentive Plans (LTIP).
Successful Positive 1 Strong 3 destinations foundations school years 2 Post 16+ in Early Years
health Extending and well-being 9 enterprise 8 Good
progress and identifying areas for improvement.
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Widening access to savings & credit
Harness the Building homes 14 digital divide 1 for opportunity 12 & sustainable 13 the energy 10 Closing 1 Infrastructure transition communities
Achieve equality, through diversity & inclusion
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Right advice and experiences
recruitment 5 Open
career progression 6 Fair
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Introduction
1.2 Tackling the UK’s Biggest Challenges in Partnership with the Purpose Coalition
Virgin Money and the Purpose Coalition are working
together to tackle the UK’s biggest challenges facing
customers, colleagues and communities. From helping
people with the cost-of-living crisis in the short term, to delivering equality of opportunity across the country.
The cost-of-living is the biggest issue facing the United
Kingdom today and will require action from all sections of our society from politics; to business; to us as individuals
helping out our friends, neighbours and local communities where we can. While the cost-of-living crisis will affect the poorest in society the most, with those households facing
a higher level of inflation, one of the biggest challenges for the government is that the rising cost-of-living will affect almost everyone.
the UN SDGs, as well as the 2015 Paris Agreement on
Climate Change, and has committed to report annually on progress around our two significant impact areas of Climate and Financial Inclusion.
Since the UN SDGs, the COVID-19 pandemic and the
cost-of-living crisis has only exacerbated many of the problems relating to social inequality in the UK.
The pathway towards recovery is a chance for the United Kingdom to address these issues and level up but that
requires updated and specific goals in order to outline, inspire and measure progress. The most committed
signatories of the Social Mobility Pledge, the Purpose
Coalition and the Cost-of-Living Taskforce aim to improve social mobility in the UK and have responded to this
challenge with the launch of the Purpose Goals in February 2021 and the Cost-of-Living Taskforce in August 2022.
The Purpose Coalition measures organisations against
what they are doing for their customers, colleagues and communities through the Purpose Goals with tools such as the Cost-of-Living Taskforce.
In 2015, as Secretary of State for International
Development, Rt Hon Justine Greening led the UK
delegation to the United Nations (UN). Along with 184
international partners, she helped to establish the UN’s
Sustainable Development Goals (SDGs). In 2017, the SDGs
were made more ‘actionable’ by a UN resolution adopted by the General Assembly which identified specific targets for each goal, along with indicators used to measure progress towards each target.
The UN Environment Programme (UNEP) Finance Initiative established the UN Principles of Responsible Banking
framework, providing a consistent structure for banks
to identify and report on their progress to address the impacts outlined with the 17 SDGs.
These 17 interlinked, global goals were designed to be
‘a blueprint to achieve a better and more sustainable
future for all’. The SDGs emphasised the interdependent environment, social and economic aspects of
development by centralising the role of sustainability.
As Secretary of State, Justine recognised how useful a
common set of accessible but ambitious objectives could be in galvanising action to effect change.
As a signatory to the UN Principles for Responsible Banking (PRB), Virgin Money has aligned its ESG strategy with
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If Britain is to achieve levelling up, I believe that we need a galvanising set of goals that can unite Parliament, business, communities, and civil society to work in partnership for the common good of our country.
Introduction
Successful 1 Strong foundations school years 2 in Early Years
The Purpose Goals build on the foundations laid by
the UN’s SDGs by outlining 14 clear goals and draw on
expertise provided by academia and businesses which has been applied to the unique challenges facing the UK currently in what has potential to be a profound levelling down moment for the country.
3 Positive destinations Post 16+
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Right advice and experiences
The Purpose Goals focus on key life stages and
highlight the main issues that need to be resolved in order to create a level playing field for all in this country. The Goals are intended to guide how the
urgent ambition to level up the UK can actually be
achieved. The impact of the work carried out to do this
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Open recruitment
can and should be measurable.
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Fair career progression
Sub-goals with quantifiable targets and
measurements against which progress can be
charted within the 14 goals are being developed by the Purpose Coalition. This will create a more transparent
and mensurable framework with which to monitor and
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Widening access to savings & credit
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subsequently address problems of social mobility and
Good health and well-being
inequality. The Purpose Goals are designed to look at the outcomes of ESG strategies and measures that
organisations operate. Many organisations are doing
outstanding work and making important contributions to society but are still measuring this via inputs.
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Extending enterprise
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Closing the digital divide
Crucially, these Goals are a shared framework. Justine and the wider Purpose Coalition, of which Virgin
Money is a key member, believe that with a common understanding and objectives, there can be action
that drives change on the ground. Distinct entities -
including universities, businesses, policy-makers, and public sector bodies - can work together, with the
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Infrastructure for opportunity
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Building homes & sustainable communities
shared Goals operating as a uniting and motivating
foundation for progress. As the problems which cause social inequality in the UK are interlinked, it seems
that the response to these problems must also be collaborative.
The Purpose Coalition has encouraged businesses and
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Harness the energy transition
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Achieve equality, through diversity & inclusion
universities to share their own best practice with other
organisations so they are not only demonstrating their
commitment, but creating a shift towards purpose-led organisations. The Goals can encourage an extension of this co-operative exchange of information which
can be used to address the cost-of-living crisis, and later level up the UK.
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Activities
school years 2 Successful
Goal 2: Successful school years
2.0 Benchmarking Virgin Money’s Progress Against the Purpose Goals Many organisations have strong commitments to
traditional Corporate Social Responsibility and the wider ESG agenda. This Report represents a step-
change in the production of social value by a business leading the way in the financial services sector.
This section of the Report will map several of Virgin
Money’s specific initiatives against its strategic Purpose Goals target areas - benchmarking where progress has been made since its 2022 Impact Report and
where efforts could be redirected or better targeted.
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Successful school years are a crucial part of not only a young person’s academic development but also their wider personal development. The attainment gap between the most and least privileged students remains high and becomes further entrenched as a child grows up. Leading financial services organisations like Virgin Money have critical opportunities to deliver against Goal 2. Not only in delivering skilled career opportunities to young people up and down the country, but through the proactive sharing of vital financial education, early in a child’s development. 2.1.1.Fostering Early Financial Literacy As part of Virgin Money’s commitment to fostering financial literacy across the community, it has acted upon findings in this 2022 Impact Report and scaled-up its innovative and sector-leading primary school outreach and skills programme, ‘Make £5 Grow’. Make £5 Grow is a programme for primary school children – aged 9 to 11 – designed to help pupils draw out their enterprising skills while equipping them with key financial knowledge. It aims to build the next generation of budding entrepreneurs while boosting children’s confidence in managing their money by providing extensive lesson plans, fun activities and resources to help pupils succeed in designing and bringing a product or service to market. Make £5 Grow builds pupils’ business knowledge and skills, giving them an insight into how business works, while supporting key areas of the national curriculum.
Activities
The programme includes access to a “Resource Hub” a centralised online platform that aims to provide teachers with the tools and support they need to create a business plan with their pupils and map out the budget required to bring their entrepreneurial ideas to life. Virgin Money also offer each pupil a £5 loan to source any materials required. Students then pay back the loan once they have made their money back and keep any profit made. The profit made by the pupils is used in a number of ways - in better-resourced areas schools donate the profits to charity, with one school donating £300 to Macmillan. In partnership with Everfi - a specialist organisation that creates interactive, web-based learning courses to teach students critical skills at no cost to schools and teachers, Virgin Money conducted an in-depth review of the programme, making adjustments and transforming the social value offering. This led to each of the modules being refreshed with a significant amount of new content added.
This includes five new modules available through the Resource Hub: 1. What is enterprise? Pupils learn what enterprise means, what an entrepreneur is and the importance of building and developing individual skills. 2. Teamwork. Pupils learn the importance of teamwork and what they can each bring to the group. 3. Developing ideas. Pupils generate and share their ideas and begin to understand the importance of creativity in business. 4. Design and marketing. Pupils learn about market research and the importance of costs and financial management in business. 5. Budgeting for success. Pupils learn the importance of manufacturing, marketing and delivery within a budget.
The modules each feature videos from entrepreneurs - through Virgin Start-Up - as well as comprehensive teaching notes to aid the delivery of the lessons. Not only do these videos bring the modules to life for the pupils but Virgin Money ensures representation from a wide variety of backgrounds so the children are provided with diverse and inclusive real-life role models. Critically, Virgin Money colleagues act in a volunteer capacity as ambassadors of the programme by visiting some of the schools to engage and energise the pupils while also supporting the delivery of sections. This has included ‘Dragons Den’ style presentations from the students focusing on their product or business plans. Due to the COVID-19 pandemic Virgin Money ensured the continuation of the programme and undertook an agenda of digitisation over 2022/23. This led to a much-improved uptake in the programme, and since its inception, more than 185,000 children across almost 2,000 schools have participated in the programme. Looking forward, Virgin Money is planning to extend the reach of Make £5 Grow even further. It is engaging with the Money and Pension Service to discover how the organisation can physically get into more schools and work with more pupils including at High School age.
Case Study - St Augustine’s Primary School Emma Halford, Teacher: “The programme is a great opportunity for the children. They thoroughly enjoyed the whole experience, particularly taking ownership of their projects. The children loved taking part in Make £5 Grow. The cupcake challenge was fabulous and the programme was easy to run right from the moment we received our loan. We would certainly recommend it to other teachers.”
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Activities
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Widening access to savings & credit
Goal 7: Widening access to savings & credit However talented a person is, being trapped in debt or being unable to access capital massively hinders access to opportunity. Whether it’s being able to afford day-to-day essentials and housing, putting money aside to protect against unexpected costs (like a broken boiler or leaky roof), or saving for your future, managing money and getting good advice and skills to do so can make all the difference in people being able to make the most of their potential. Organisations like Virgin Money are uniquely positioned to deliver against Goal 7 in a time of economic turmoil. More and more businesses across the financial sector strategically target support mechanisms and tools to the most vulnerable customers and communities, with Virgin Money taking critical steps to deliver for under-resourced groups across the UK. Critical to widening access to savings and responsible credit is closing the digital divide that exists for the poorest communities - especially with the increase in online banking. That can mean improving access to data, devices or digital skills training. In some instances, people need support in all three areas. Digital inclusion has a particular impact on the ability of those with the least resources to access financial services and economic support mechanisms. This can entrench particular types of poverty and deprivation even further. Virgin Money and similar businesses have a responsibility to act on closing the digital divide and are taking strategic steps to do so in areas of most need. 2.2.1. Tackling the poverty premium Virgin Money’s sector-leading work in highlighting and working towards eradicating the poverty premium is a key aspect of the organisation's social value approach, which has been embedded and strengthened since the 2022 Impact Report.
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An estimated 14 million people in the UK - around a fifth of the population - currently pay a poverty premium. Research suggests that this can result in impacted households paying an average of £478 in excess costs each year. For 1 in 10, these costs can rise to as much as £780 a year. Since the launch of Virgin Money’s Impact Report, the organisation has become even more active in tackling the poverty premium. As part of its organisational purpose-led pillar ‘Open Doors’ Virgin Money has set specific goals to deliver against the poverty premium in a wider push towards promoting financial inclusion. Its aspiration is to work towards the eradication of the poverty premium. Over the coming years, Virgin Money aims to measure the levels of premium exposure of its customers and identify ways to address it and support them. In December 2022 - at the height of the cost-ofliving crisis - Virgin Money partnered with the Centre for Social Justice, publishing a comprehensive Report outlining in detail the extraordinary challenges people face in poverty and the premium they have to pay as a result of their deprivation. As part of its research for the Report, a poll was conducted of 4,000 adults across the UK. This highlighted that those that were paying the poverty premium appeared to be feeling the effects of the rising cost-of-living more acutely than others, with 29 per cent of those paying at least one poverty premium saying they were skipping meals to pay bills. The research also found that approximately 33 per cent of low income households resort to costlier non-standard payment methods for their electricity bills, while 22 per cent express a desire for home contents insurance but find it unaffordable. In addition, due to limited travel options, these households are twice as likely to shop in more expensive smaller supermarkets - 15 per cent vs 7 per cent.
Activities
What’s more, the Report identified a common theme causing or exacerbating poverty premium - digital exclusion. In order to tackle the poverty premium, Virgin Money has been investigating opportunities to boost incomes of its customers. It partnered with Turn2Us to embed their benefits calculator on the bank’s customer website in late 2021. The tool helps individuals identify benefits that they may be eligible for in minutes and was put at the centre of Virgin Money’s contribution to the Department for Work and Pension’s Pension Credit campaign in late 2022, where the bank worked with the Department to target over 65s and their families on social media. The success of this campaign and other activities has resulted in 50k people using the tool and £4.5m in benefits being identified. In November, the bank further deepened its relationship with Turn2Us by becoming the first bank to embed the charity’s grants search tool, that helps individuals to identify grants that may be available to them based on a range of factors including location, current or previous job and what energy and water provider they use. The aim of both of these partnerships is to offset the poverty premium as well as the rising cost-of-living. However, in order to access these types of tools and other benefits, individuals need to have access to the internet.
2.2.2. Digital inclusion One of the biggest links Virgin Money uncovered in its research on the poverty premium - and therefore a myriad of deprivation challenges - is a lack of access to digital services. Across the UK, digital exclusion is more prevalent amongst those on the lowest incomes. A fifth of adults with a household income below £15,000 are digitally excluded compared to just 1 per cent of those with an income of £50,000+. This exclusion serves to decrease the ability of low-income households to access the best deals and prices, resulting in many paying up to 25 per cent more for essential goods and services, than those with digital access. To help tackle digital exclusion and connect the most under-resourced individuals and families with digital services, Virgin Money partnered with Good Things Foundation at the end of 2022, becoming the first bank in the UK to sign up to the National Databank Programme. The National Databank Programme, founded by Virgin Media O2 and Good Things Foundation, is like a foodbank for data, providing free mobile data for people in need, regardless of whether they are a Virgin Money customer. The innovative programme distributes SIM cards loaded with 20GB of free data every month for six months, from 50 stores across the country.
This is why the bank has also undertaken significant work to promote digital inclusion. It is also why the Virgin Money Foundation will be focussed on working in partnership with organisations that are tackling digital exclusion in local communities and by investing in community activities that close the digital divide.
Eligible individuals impacted by data poverty can be identified in store by Virgin Money’s specially trained colleagues or referred into Virgin Money from community organisations for Databank support. As well as receiving a free SIM card, recipients are shown how to get online and offered tips on how to stay safe when browsing.
The Virgin Money Foundation is the business’ charity body. The Foundation is supporting local people and communities across the UK to deliver positive change and social value. Established in 2015, the Foundation has supported local initiatives and organisations by awarding over £13 million in donations. and a number of Virgin Money colleagues have volunteered hours in support.
Virgin Money will have turned all of its stores into Databanks by mid-January and will take further steps to entrench its relationship with Good Things Foundation in terms of improving digital skills and access to devices in the coming months. In doing so Virgin Money have taken significant strides in addressing a recommendation from the 2022 Impact Report to amplify its work on the Poverty Premium.
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Activities
health and well-being 8 Good
Organisations across the public and private sector have
on top of annual leave to give colleagues more time
physical health of their colleagues and the communities
a day one right as well as making sickness leave a
a crucial role to play in improving the mental and they operate in. More and more companies are
acknowledging the business imperative and are taking steps to boost overall wellbeing to allow people to fulfil their full potential.
day one right. These benefits came on top of an already compelling package of comprehensive
health insurance; life assurance plans; and employer pension contributions.
2.3.1. A ground-breaking colleague offering
The benefits of A Life More Virgin are now being felt
trailblazing flexible working colleague offering - A Life
outcomes, including colleague wellbeing, and retention
As outlined in its 2022 Impact Report, Virgin Money’s
More Virgin - is innovating in the driving and promotion of social value internally.
Having surveyed all Virgin Money staff - as well over
3,000 members of the public - on their flexible working
priorities, it found that 73 per cent of employees reported increased flexibility would improve their general
happiness, and 62 percent fed back that it would directly improve their mental health.
As a result of these findings, Virgin Money brought in
a ground-breaking and innovative suite of colleague benefits. This included five additional wellbeing days,
More and more companies are acknowledging the business imperative and are taking steps to boost overall wellbeing to allow people to fulfil their full potential.
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to switch off. It also offered parental leave equal and
across the organisation, with improved employee across the organisation.
Almost two years on from its full introduction, A Life More Virgin is now further embedded into the
organisation’s processes and is having a significant impact on Virgin Money’s talent pipeline. Since the beginning of 2023, up until the end of October, the
organisation has seen application numbers increase by 294 per cent against the same period in 2021,
alongside a 59 per cent increase from the same
period in 2022. Alongside improvements in recruitment outcomes, the organisation has also seen turnover reduce by just over one-third.
Activities
2.3.2. Charity partnerships
Virgin Money has taken concerted steps to increase its social value commitments on the back of
recommendations and findings from the organisation’s 2022 Impact Report. From the 2022 Report, the Purpose
Charity Partner Case Study Hospitality and Hope
Coalition noted that the business’ charity partnerships
Hospitality and Hope is a charity based in South
response, Virgin Money took on board this feedback and
food poverty, reducing homelessness, improving
could be better aligned with the bank’s purpose. In
ran a comprehensive programme to find and establish close relationships with purpose-led partners.
Shields. They have four main priorities, tackling
community wellbeing - including financial - and increasing employability.
The most notable is the deepening of its long-standing and
The Virgin Money Foundation provided
Virgin Money’s colleagues and Macmillan Champions have
community shop that would support local
embedded partnership with Macmillan Cancer Support.
been instrumental in helping people impacted by cancer through fundraising and volunteering activities. Over the 3-year partnership, Virgin Money colleagues raised over £1.5 million for Macmillan cancer support.
Virgin Money has now reached the end of its partnership
with Macmillan but the legacy of the partnership remains with colleagues having the skills and knowledge to
funding to Hospitality and Hope to open a
people struggling with the rising cost-of-living. The community shop has operated as much
more than a place to source low-cost food, it is a community hub, a place that brings the local community together and allows community members to access further support around health and wellbeing.
support co-workers and customers impacted by cancer.
After nine months the shop was supporting 150
encouraged the bank to create a stronger link between
week. On the back of the work, Hospitality and
In response to the Coalition’s previous Report, which
its community strategy and its purpose, Virgin Money
developed criteria to ensure that its next charity partner would help the bank in its ambition to improve people’s
relationship with money and in particular support financial
households - approximately 450 people - every Hope secured a Levelling Up grant from the
government to open two further shops across the borough.
education and digital inclusion. Recognising the value
colleagues play in supporting the charity partner through fundraising and volunteering Virgin Money invited all
colleagues to have the final and most crucial say on the next charity partnership through a colleague vote.
Virgin Money has subsequently announced that from
Charity Partner Case Study - West View Advice and Resource Centre (WVARC)
2024, Mind and Scottish Action for Mental Health (SAMH)
Based in Hartlepool - the 13th most income-
link between money and mental health, it is set to be an
supports its community through a range of
will be the bank’s new charity partners. With the intrinsic impactful partnership.
More widely, Virgin Money continues to provide financial support and resources to the Virgin Money Foundation.
Founded by Virgin Money in 2015, the Foundation supports
deprived local authority in England - WVARC initiatives from running the community library
to offering support to people living with cancer, to helping people to access benefits they are entitled to and maximise their income.
charities in the most deprived communities - as identified
The Virgin Money Foundation supported WVARC
Index of Multiple Deprivation. Many of these communities
During the three-year grant WVARC delivered
through the Index of Multiple Deprivation and the Scottish are also those which have been hit hardest by the rising cost-of-living. Over 2023, the Foundation has awarded
350 grants totalling £1.6million to local charities and in FY24 will have a specific focus on supporting charities that help
with a three-year grant between 2020 and 2023. 10,500 advice sessions and brought in over £15.5 million of additional benefits for members of their community.
alleviate poverty and tackle digital exclusion .
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Activities
14
Achieve equality, through diversity & inclusion
While men and women are paid the same for the same role, structural issues facing the bank have made shifting the dial on its gender pay gap
difficult. Historically the bank has had weaker female
representation at senior levels and over-representation within part time and entry level positions. As a result
Goal 14: Achieve equality through diversity and inclusion Creating a level playing field of opportunity for all is
vital to fully unleash Britain’s potential for the first time.
Diversity extends beyond gender and ethnicity to sexuality, disability and other aspects of identity that can lead to
disadvantage. When we look across the leadership roles
career progression. This has included its “Welcome Back” programme for colleagues returning from maternity
leave and its Springboard programme to support female colleagues with their career progression. However,
sometimes staying in a part-time or entry level position is an active choice, often due to caring responsibilities within the home.
in business, the judiciary, government and politics, there is
2.4.2. BRAVER allyship programme
backgrounds.
new internal allyship programme: Believe, Reflect,
a continued skew towards those from the most privileged
More and more organisations across all industries are
centralising diversity and inclusion as crucial underpinning pillars to their purpose. The very best are setting ambitious targets and regularly reviewing their progress.
Virgin Money has acknowledged that to achieve its
purpose of Making You Happier About Your Money, it must see and feel the world as its customers do, that means
having a truly diverse and representative workforce that
Virgin Money has recently introduced its comprehensive Accountable, Vulnerable, Empathy, and Recognise (BRAVER).
The programme is aimed to offer a tangible framework for how all colleagues can be effective allies and boost inclusion right across the organisation.
This is part of a wider push to - organically - link inclusion and diversity mechanisms with talent
advancement. Virgin Money is focusing on ensuring
reflects the communities it serves. The organisation has
all potential applicants and colleagues move fairly
achieve a fully diverse leadership population in gender,
are able to be themselves and truly progress once
focused on sponsoring diverse talent at every level to ethnicity, disability, and LGBT+ by 2030.
and effectively through the recruitment process and within the organisation.
2.4.1. Fostering gender parity
2.4.3. Inclusive talent pipeline
highest ratios of females sitting at the top table of
playing a crucial role in enhancing inclusivity within
As of August 2023, Virgin Money now has one of the any UK retail bank, with a 57:43 female-to-male split across its leadership team. In addition, its board is
The A Life More Virgin programme at Virgin Money is the organisation.
37.5 per cent female.
Notably, when comparing applications in May 2022
This progress in promoting female representation at
results, with a remarkable 125 per cent increase in
senior levels has been achieved through a multi-layered approach of innovative recruitment strategies; training; top of bank accountability; progressive people policies
and its fully flexible approach to work - A Life More Virgin. This is also reflected in an improvement in its gender pay gap from the previous Impact Report - with the
mean gap reducing by over two percentage points to 26.4 per cent in 2023.
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of this, it has been focused on strategies to promote
to that of May 2023, the program has yielded significant applications from individuals identifying as Black/British Black African. Additionally, during the same period,
there has been a 51 per cent surge in applications from
those identifying as Asian/British Asian and a substantial 47 per cent increase in applications from individuals
who self-identify as having a disability. These statistics underscore the program’s effectiveness in fostering a more diverse and inclusive talent pipeline within Virgin Money.
Activities
As of August 2023, Virgin Money now has one of the highest ratios of females sitting at the top table of any UK retail bank, with a 57:43 female-to-male split across its leadership team. In addition, its board is 37.5 per cent female.
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Analysis
3.0 Analysis Virgin Money’s comprehensive social value
Virgin Money’s innovative colleague offering, ‘A Life
with a profound influence on the organisation’s
of its survey involving employees and the public - has
programme encompasses several key goals, each commitment to achieving its purpose. Since the release of Virgin Money’s Impact Report in 2022,
notable strides have been made in advancing these goals - reflecting the company’s dedication to
promoting positive change. Strategic shifts have been made to ensure each of the organisation’s
social value streams complement each other and drives all action, underpinned by Virgin Money’s
purpose and its two overarching themes of financial education and digital inclusion.
One of the central pillars of Virgin Money’s social value agenda is the research and active work leading the way for the sector - in eradicating the poverty premium. This premium, affecting
approximately 14 million people across the UK, imposes an average annual cost of £478 on
households, with some enduring expenses as high
as £780 annually. Following the Impact Report, Virgin Money has intensified its efforts to eliminate this
financial burden on the most vulnerable in society. Underpinned by the organisation’s ‘Open Doors’ social value pillar, Virgin Money has set clear
objectives to address the poverty premium - with
an ambition to work towards the eradication of the poverty premium for its customers.
Over the next five years, Virgin Money intends to
gauge premium exposure amongst its customers
and collaborate with partners to implement solutions,
had a transformative effect. It has resulted in increased employee happiness, improved mental health, and
better overall wellbeing. This offering includes 30 days
of annual leave, five wellbeing days, as well as sickness and shared parental leave being offered as a day one right. Nearly two years after its full implementation, ‘A Life More Virgin’ has become an integral part of
the organisation’s offer to colleagues, significantly
impacting Virgin Money’s talent pipeline. Since the
beginning of 2023, up until the end of October, they
have seen application numbers increase by 294 per
cent against the same period in 2021, alongside a 59 per cent increase from the same period in 2022.This demonstrates the positive effects of this innovative
colleague offering on employee satisfaction, retention, recruitment and internally driven social value which
has improved the wellbeing of staff and therefore of the organisation itself.
Virgin Money is also committed to fostering gender parity within its workforce, with a comprehensive
range of initiatives to ensure gender balance at all
levels of the organisation. The company achieved its goal of 45-55 per cent female representation within
the top three levels of the organisation by September 2023 and its gender pay gap has improved, standing at 26.4 per cent in 2023. Virgin Money recognises the importance of addressing the gender pay gap and
continues to work towards attracting, retaining, and developing female talent across all levels.
particularly in areas like energy, credit, and payment-
The organisation is applying its agenda on gender
partnered with the Centre for Social Justice to
more widely for all groups. The introduction of the
related premiums. In December 2022, Virgin Money publish a comprehensive Report, shedding light on the extraordinary challenges faced by individuals
in poverty and the premiums they pay due to their deprivation. This critical research showcased the
urgent need for Virgin Money’s efforts to eliminate the poverty premium.
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More Virgin’ - introduced in response to the findings
parity to its equity, diversity, and inclusion approach BRAVER Allyship Programme demonstrates Virgin Money’s commitment to fostering a culture of
inclusion and diversity within the organisation.
This programme provides a structured framework for colleagues to become effective allies and promote inclusivity across the company.
Analysis
Virgin Money’s initiatives reflect its dedication to addressing pressing social issues and making a meaningful difference in the lives of its customers, employees and the wider community.
Virgin Money extends its approach internally to an
organisational commitment to continually supporting
its local communities. This is illustrated by its ‘Make £5
Mental Health, a partnership that is filled with exciting opportunities to align with its Purpose.
Grow’ initiative which is aimed at enhancing financial
In summary, Virgin Money’s production of social value
students. Through digitisation efforts, the programme
Impact Report in 2022. The company’s efforts to eliminate
literacy and entrepreneurial skills among primary school has been extended to reach more schools, with over
185,000 children across nearly 2,000 schools participating since its launch. Virgin Money has also made significant donations to the Virgin Money Foundation, contributing
to driving positive change in regions across the country. Virgin Money colleagues have voted for the incoming charity partnership with Mind and Scottish Action for
has made significant strides since the release of its
the poverty premium, promote employee wellbeing,
support sustainable communities, and foster diversity
and inclusion are indicative of its commitment to driving
positive societal change. Virgin Money’s initiatives reflect its dedication to addressing pressing social issues
and making a meaningful difference in the lives of its customers, employees and the wider community.
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Recommendations
4.0 Recommendations Since its 2022 Impact Report, Virgin Money has
Virgin Money could explore implementing specific
value in key target areas. Throughout this section,
and address internal social mobility barriers.
made impressive progress in its deliverance of social recommendations will be offered in strategic impact
questions in staff surveys that can help it gauge
zones where the organisation can go even further in
The organisation could apply four questions developed
and the communities it serves.
Justine Greening in partnership with the Social Mobility
delivering social value for its customers, its colleagues
R1
Assess internal social mobility through comprehensive employee engagement and tracking
by the Equality of Opportunity Coalition - led by Rt Hon Commission - to its staff tracking survey and produce accurate results on the socioeconomic diversity of staff across every level of the business: •
What was the occupation of your main household
Virgin Money is focused on achieving gender parity and
•
What was the type of school you attended for the
of its 2022 Impact Report. To go even further in
•
has made significant progress since the publication achieving its goals on internal social mobility for all
underrepresented groups, Virgin Money could look to transform its approach by applying socioeconomic
diversity tracking in its employee demographic surveys. Understanding the socioeconomic background of employees can help to identify any potential
•
earner when you were 14?
most time between the ages of 11 and 16?
If you finished school after 1980, were you eligible for free school meals during your school years?
Did either of your parents attend university and
gain a degree (BA/BSc or equivalent) by the time you were 18?
R2
under-resourced backgrounds may face across all
Expand Make £5 Grow programme further to support more age groups
the development of targeted support programmes
Virgin Money’s early education outreach programme,
work environment at all levels of the business.
with effective money saving tools. The organisation,
barriers to career progression that employees from protected characteristics. This knowledge can guide and initiatives to foster a more inclusive and supportive
Make £5 Grow, is offering children critical engagement taking advantage of pre-established relationships
with schools across the country, should look to take the next step with the programme. It should look to
develop resources using M5G as a template to target other school age groups, like high school, as well
care leavers and other groups that may benefit from targeted programmes.
In doing so Virgin Money should seek to use the opportunity to review its existing content. This
should include seeking to engage with appropriate organisations to identify ways of increasing the
financial education content in it as they build out
Make £5 Grow for other audiences, as well as ensuring it reflects the evolving relationship that people have with money.
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Recommendations
R3
R5
As a financial services organisation, Virgin Money is
In Virgin Money’s 2022 Impact Report, the
premium and delivering social value to under-resourced
However, over the past year, the programme has
Amplify the leading work on the poverty premium through Purpose Coalition members
leading the sector with its work in tackling the poverty groups across the UK. As outlined above, the poverty premium inherently affects those with the highest
barriers to opportunity - cutting costs for these groups is critical, especially during a time of rising prices.
Virgin Money should look to amplify its impressive work on this agenda, seeking to influence greater action
Work with Government and policymakers to amplify A Life More Virgin
successful launch of A Life More Virgin was outlined. gone a step further.
It has delivered overwhelming benefits to the
organisation and its employees, embedding the
business’ purpose into its colleague offering - as
well achieving a number of wider transformations.
from key industry partners through further proactive
The value produced in terms of improved
the Centre for Social Justice, the business should seek to
retention, and aptitude across the organisation
campaigning on the issue. Building on its Report with
utilise the upcoming General Election to engage policymakers and future policy-makers.
In particular, it could harness the membership of The
productivity, colleague happiness, employee served as a clear choice for Virgin Money to
scale-up A Life More Virgin, and it should encourage other purpose-led organisations to do the same.
Purpose Coalition to further raise the profile of the
Since Virgin Money’s 2022 Impact Report, the
universities, and the public sector - encouraging action
benefits upstream, throughout the organisation’s
poverty premium across other business sector industries, and support on the issue.
R4
Create a model for organisations to increase digital inclusion
programme has also delivered comprehensive talent pipeline. Visits to its careers site and the
number of applications significantly increased,
delivering benefits to the organisation in widening its talent pool while offering employees a number of key social value measures.
Virgin Money is leading the financial services sector in
Virgin Money should look to continue to collaborate
the cause of digital exclusion - and direct outreach to
to amplify the ongoing learnings and successes of
its approach to digital inclusion. Its critical research into close the digital divide - is delivering social value to the communities it is operating in.
To take the next step in this agenda, Virgin Money should work closely with its existing partners, including its own Foundation, to embed a digital inclusion strategy that
deepens relationships with key community partners to
support and drive the delivery of services and resources that help to increase digital inclusion.
with Government, policymakers and key stakeholders A Life More Virgin.
Organisations across the public and private sector are grappling with challenges related to flexible
working. Applying the critical learnings from Virgin
Money’s approach as it evolves could deliver social value to employees across all sectors, as well as increasing growth through key productivity and retention benefits.
Virgin Money should also look to maximise the potential of
The impressive results of A Life More Virgin
methods on closing the digital divide and encouraging
voice in the public debate to lead purpose-
the Purpose Coalition’s network, exchanging best practice other like-minded organisations to take concerted steps in boosting digital inclusion for colleagues, customers, and the wider community.
continues to give the organisation a powerful led organisations in a successful workplace transformation.
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Foreword
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