European Social Fund:
Looking towards the future
VSNW Annual Conference
4 October 2011
Presenting: Angeliki Stogia
Chair: John Hacking
Workshop aims
• Explain what is the European Social Fund (ESF)
• Outline what ESF funds in the current programming period
• Explain how ESF can be accessed, and how voluntary and
community sector organisations engage with the
programme
• Provide an overview of emerging priorities for ESF in the
new programme
• Provide you with an opportunity to feed in ideas on where
the ESF programme should focus in the future
What is ESF?
The European Social Fund (ESF) is the main financial tool through
which the European Union translates its strategic employment
policy aims into action
ESF aims to improve employment opportunities in the European
Union by providing financial support towards the running costs of
vocational training schemes, guidance and counselling projects, job
creation measures and other steps to improve the employability
and skills of both employed and unemployed people
How ESF is managed
• The Department for Work and Pensions (DWP) has overall
responsibility for ESF funds in England
• DWP manages the England ESF programme at a national level
and liaises with the European Commission in Brussels
• Each region has its own ESF allocation to fund projects to
address its regional jobs and skills needs, within the
framework of the two priorities in the England ESF
programme
European Social Fund: funding priorities
Priority 1 - Extending Employment Opportunities
• The objective of Priority 1 is to increase employment and to
reduce unemployment and inactivity.
• It will help to tackle barriers to work faced by disadvantaged
groups such as people with disabilities and health conditions,
lone parents and other disadvantaged parents, older workers,
ethnic minorities, and people with no or low qualifications. It
will also aim to reduce the numbers of young people not in
education, employment or training (NEET).
European Social Fund: funding priorities
Priority 2 - Developing a Skilled and Adaptable Workforce:
• The objective of Priority 2 is to develop a skilled and
adaptable workforce by; reducing the number of people
without basic skills;
• Increasing the number of people qualified to level 2 and,
where justified, to level 3;
• Reducing gender segregation in the workforce
• Developing managers and workers in small enterprises
• There will be a particular focus on the low skilled
Accessing ESF
ESF is accessed through Co-financing organisations
• Co-financing means channelling ESF and the required match
funding to providers in a single stream
• Organisations which do this are called Co-financing
organisations
Accessing ESF in the North West
There are three Co-financing organisation in the North West:
• Skills Funding Agency aims to improve the employability and
skills of employed and unemployed people by supporting education
and vocational training schemes and learning for the 19+ (and
Young People’s Learning Agency)
• Jobcentre Plus/DWP supports disadvantaged people claiming
incapacity benefit or Income Support through voluntary
participation in the work programme and provides targeted support
to tackle workessness in families with multiple problems
• National Offender Management Service (NOMS) aims to
enhance the employability prospects of offenders by bridging the
existing gaps between offenders and mainstream education, skills
and employment services before, during and after release from
custody
Accessing ESF in the North West
Procurement mechanisms
• Skills Funding Agency procures funds through an online
procurement portal after organisations have successfully registered
with the Approved College and Training Organisations Register
(ACTOR) operating the lead contractor model
• Jobcentre Plus/DWP procures funds to organisations on the
Employment Related Support Services Network, operating the
prime contracting model
• National Offender Management Service (NOMS) procures
funds through the prime contracting model
European Social Fund: funding priorities
Community Grants - Helping people access the labour market
• Supporting a range of activities aim at assisting the
disadvantaged or excluded to move closer to the labour
market, focusing on individuals who have difficulty accessing
ESF or mainstream provision outcomes
• Based on progression rather than achievement of jobs or
qualifications
• Activities include first contact engagement, confidence
building, help with basic skills, taster work experience,
training, advice, counselling, jobsearch
• Grants up to £12K accessed through simplified application
arrangements, available to voluntary sector groups who
would not otherwise be able to access ESF. Grants accessed
through Community Grants Coordinating Bodies
Requirements for accessing ESF
External considerations
• ESF - a national programme with regional allocations now
managed nationally
• Push towards bigger contracts/minimum contract levels
You will need to demonstrate
• Quality standards
• Capacity & Capability to deliver
• Track record
You will most likely access as
• Lead contractor
• Sub-contractor / second level subcontractor
• Contract holder for smaller grants - ESF Community Grants
Current issues in accessing ESF
Feedback we gathered from organisations
• Larger contracts limit opportunities to access
• Provision narrow, prescriptive limited room for innovation
• Payment by results model puts strain on cashflow
• Limited resources to engage with the programme as well as
carry on with day to day delivery
• Support in meeting quality standards
• Capacity & Capability to deliver
• Risk of becoming mission-drift
European Social Fund
2014-2020
European Social Fund 2014-2020
• Less money for the UK the amount of funding for the UK is likely to
fall, greater proportion of funding earmarked for poorer areas,
however, increasing share of ESF to 25% of Cohesion funds
• Alignment with EU 2020 these objectives include raising the
employment rate, tackling poverty, improving access to education,
investing more money on research and development, using energy
more efficiently and promoting clean technologies to reduce carbon
dioxide emissions
• Focusing resources on a small number of priorities four
thematic priorities currently being proposed: promoting
employment, investing in skills and lifelong learning, fight against
poverty and efficient public administration and institutional capacity
• ESF to return to a more social inclusion approach, with less focus on
job outcomes
European Structural Funds 2014-2020
• Simplification proposals to simplify, speed up and improve
administration and delivery, requiring member states to commit to
radical simplification
• Coordinated spending aiming to bring greater coherence
between funds and simplification of rules for each fund making it
easier to put together projects that package support for more than
one fund
• Strengthening partnerships increasing the involvement of local
and regional stakeholders, social partners and civil organisations in
the implementation of operational programme. Encouraging spread
of community led local development approaches based on
partnerships among various relevant stakeholders
Questions for discussion
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What are the issues you currently face in accessing/running ESF?
How can the sector best engage with the new ESF programme?
What activities ESF should fund in the future?
What are the gaps in your geographical area/thematic interest?
How should the ESF programme be run?
Feedback on the headlines for the new programming period?