Purpose Coalition & Virgin Money - Social Value Impact Report

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

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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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