Nesta launches £2.8 million Rapid Recovery Challenge to support those hit hardest by COVID-19

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Nesta, the innovation foundation, announced the launch of a £2.8 million Rapid Recovery Challenge today. The new development is expected to help in finding and supporting tools and solutions for improving access to jobs and money for people across the UK. The Challenge has been announced in partnership with the Money and Pensions Service and the JPMorgan Chase Foundation. It aims to focus on supporting workers affected by the COVID-19 crisis.

Ravi Gurumurthy, Chief Executive of Nesta, said, “COVID-19 has created a huge economic shock. Millions face severe threats to their job security and household finances, and we know that low-paid workers, people in insecure roles and those under 25 will be hit hardest. I’m looking forward to seeing the range of solutions innovators develop to address these issues and support those whose jobs and finances have been most impacted by the pandemic.”

Nesta’s research has revealed that vulnerable workers (low paid workers, younger workers, gig workers or those on temporary contracts) are twice as likely to be working fewer hours compared to people in more stable work (26% compared to 13%) and nearly a third (32%) say a second lockdown would send them over the edge financially.

Caroline Siarkiewicz, CEO of the Money and Pensions Service, said, “The Covid-19 pandemic has intensified the money worries many people face, but particularly for young people and workers on lower incomes. It’s vital that those worst hit can now access the right support and start to find a way forward with their finances.

“We’re pleased to help fund this initiative, which supports the decade-long goals set out in our UK Strategy for Financial Wellbeing to enable everyone – including those in vulnerable circumstances – to make the most of their money and pensions.”

Nesta stated that FinTechs could win up to £475,000 by entering the Challenge’s Financial Recovery Stream, which focuses on financial resilience. The stream will identify the most promising solutions and back those that have the greatest potential in helping people access financial assistance more easily, manage their cash flow, or, where necessary, access affordable and responsible credit.

Solutions submitted to the Rapid Recovery Challenge must already exist – at least in prototype form – and must have been piloted with a minimum of 1,000 users.