John Hacking – Network for Europe






Introduction to 2014-20 Programmes
Outline of Local Enterprise Partnerships (LEPs)
and their role.
Opportunities for engagement & funding
processes
Timetable and Next Steps
Short Table Top Activity
Q and A
 Smart
 Sustainable
 Inclusive

The European Regional Development Fund (ERDF),

The European Social Fund (ESF)


The European Agricultural Fund for Rural Development
(EAFRD)
Have been brought together into a single ‘EU Structural
Investment Funds (ESIF) Growth Programme’
6

The ESIF will operate in the period 2014-20

The key priorities for the ESIF will be: (These are referred to as
Thematic Objectives or TOs)
The ESIF Thematic Objectives are:
(1) strengthening research, technological development and
innovation;
(2) enhancing access to, and use and quality of, information and
communication technologies;
(3) enhancing the competitiveness of small and medium-sized
enterprises, the agricultural sector (for the EAFRD) and the
fisheries and aquaculture sector (for the EMFF);
(4) supporting the shift towards a low-carbon economy in all
sectors;
5) promoting climate change adaptation, risk prevention and
management;
(6) protecting the environment and promoting resource
efficiency;
(7) promoting sustainable transport and removing
bottlenecks in key network infrastructures;
(8) promoting employment and supporting labour mobility;
(9) promoting social inclusion and combating poverty;
(10) investing in education, skills and lifelong learning;
(11) enhancing institutional capacity and an efficient public
administration.
European Structural and Investment
Funds 2014-2020

Of the 10 Thematic Objectives in the 2014-20 ESIF
programme 3 are ESF funded.

Thematic Objective 8 - Employment

Thematic Objective 9 - Social Inclusion

Thematic Objective 10 – Skills

At least 80% of ESF to be spent on these 3 TOs - minimum of
20% on Social Inclusion)
Overall the allocation to ESF Thematic Objectives 8,9
and 10 is:


Thematic Objective 8 (Employment): €1,008 million ESF. This
reflects the important contribution that improving labour
market participation will make both to growth and to social
inclusion. In addition €160m from the Youth Employment
Initiative, alongside an equivalent amount of ESF money, will
address the challenge of youth unemployment in areas with
highest rates.
Thematic Objective 9 (Social Inclusion): €703 million. Of this
€136 million will be allocated to National Offender
Management Service. The programme is contributing
positively to the requirement that 20% of ESF at Member State
is allocated to this objective.



Thematic Objective 10 (Skills): €1,305 million. The highest
proportion of the ESF is allocated to the skills thematic
objective. This reflects the potential of ESF to support
additional provision at all skills levels to help individual
progression and promote local growth.
These are in effect the ‘funding envelopes” in which LEPs
allocate their resources to the various priorities they have
identified locally.
Local priorities of LEPs must fit with national Priorities of the
ESIF (ie the ESF and ERDF Operational programmes)

The Europe 2020 objectives relevant to the
ESF are:
◦ Employment: 75 percent of the population aged
20-64 should be in employment.
◦ Social inclusion: 20 million less people across the
EU should be at risk of poverty.
◦ Education: The share of early leavers from
education and training should be under 10%; and
at least 40% of 30-34 year-olds should complete
third level education.



Promoting sustainable and quality
employment (TO 8) and supporting labour
mobility
Promoting social inclusion (TO 9), combating
poverty and any discrimination
Investing in education, training and
vocational training for skills (TO 10) and lifelong learning

Access to Employment for Jobseekers and
Inactive People (TO8)

Sustainable Integration of Young People

Active Inclusion

Enhancing Equal Access to Lifelong Learning


Improving the Labour Market Relevance of
Education and Training Systems
Source ESF ENGLAND Operational Programme July 2014 (DWP)

TO10 Skills

Full Title of TO10

Promoting social inclusion , combating poverty and any
discrimination

Investment Priority 4 - Enhancing Equal Access to Lifelong
Learning

Full Title of IP4
Enhancing equal access to lifelong learning for all age groups
in formal, non-formal and informal settings, upgrading the
knowledge, skills and competences of the workforce, and
promoting flexible learning pathways including through
career guidance and validation of acquired competences

Need to focus on up skilling the population
particularly in relation to intermediate skills.

Enhancing equal access to lifelong learning:
will help more people gain the skills they
need to meet their goals and the needs of the
local economy. This is primarily about
training, advising or supporting individuals.


The objectives of the ESF programme will be pursued in line
with the principle of sustainable development, including the
aim of preserving, protecting and improving the quality of the
environment as well as the need to prepare for expected
changes to the environment and climate.
The programme will build on the approach adopted in the
2007- 2013 ESF programme and the lessons learned during
that programme.


The Managing Authority will require all programme providers
to have sustainable development governance, policies and
implementation plans which explain:
a) their commitment to promoting sustainable development
and complying with relevant EU and domestic environmental
legislation;
and

b) how the commitment will be turned into action at project
level.


The programme will promote equal opportunities and nondiscrimination.
The Managing Authority and all partners involved in managing and
delivering the programme will adhere to the principles and processes set
out in EU and UK equality legislation.

no individuals are excluded from participation in the programmes on the
grounds of their protected characteristics;

the needs of all potential participants are considered at project design
stage in order that the service is appropriately targeted and delivered;

services are responsive to the needs of all communities and underrepresented groups;

support is targeted towards under-represented communities where
relevant;

responsiveness to, and inclusiveness of, under-represented groups in
delivery and management.


Voluntary partnerships between local authorities and businesses
formed in 2011 by the Department for Business, Innovation and
Skills to help determine local economic priorities and lead economic
growth and job creation within its local area
There are 39 LEPs
◦ Growing Places Fund: delivering local infrastructure priorities
◦ Regional Growth Fund: drawing private sector leverage for job
creation
◦ Enterprise Zones: growth stimulation via simplified planning and
business tax breaks
◦ City Deals: Removing barriers to growth

Local Enterprise Partnerships (LEPs) have a rapidly expanding
role in driving the local economic growth agenda.




LEPs were originally created as private sector-led public :
private sector partnerships.
As a result previous VCSE engagement with LEPs has been
minimal.
However, since they assumed responsibility for EU Funds their
role has expanded into areas such as: Skills for employment;
Social inclusion; Environment and climate change; Social
innovation and Youth unemployment.




From 2013 their role has included developing investment
strategies for European Structural Funds Investment.
The majority of the funds in the ESIF Programme will be
notionally allocated to LEPs areas for 7 years (mid term
review*)
LEPs will work with local partners, to set out their the
priorities for the EU Growth Programme Funds in their area in
an ESIF investment strategy
LEPs have produced Local ESIF Investment Strategies which
set out local priorities and indicative allocations of funds.

Developing strategy, working with wide range of partners

Production of ESIF Investment Strategy*

Selecting projects (commissioning, bidding and co-financing)
Identification of match funding

Spend allocation (on time and in line with EU regulations)

Ensure outcomes delivered

Monitor delivery against strategy and programme priorities

Not responsible for administering the funds (remains with
Managing Authorities)












Local area characteristics, evidence base and vision
Formulating business case
Priorities and distribution across themes
Match funding (opt-ins and delivery tools)
Outputs and Results
Delivery arrangements
Consultation
Second (final) LEP submission
Negotiations with EU Commission
England Operational Programmes (ESF/ERDF)*
UK Partnership Agreement (agreed Oct 14)


No spend till they agreed.
ERDF –
“ Following an initial informal meeting with the European
Commission in early September, DCLG are waiting to
receive formal feedback on the ERDF OP which we hope
to receive soon. Once we receive the feedback we will
meet with the Commission during November and
December to progress the range of issues that are live
and still-to-be agreed, including the business process.
This work will lead to a revised ERDF OP that will be
submitted back to the Commission for further
negotiation and discussions. “

ESF –
“ DWP has received formal comments from the
European Commission (EC) about the Operational
Programme and is considering and discussing them
with the EC. DWP will be revising the OP with the
aim of adoption by the end of the year.”

National ESIF Growth Programme Board
◦ development of the ESIF Growth Programme
◦ co-ordination with other programmes
◦ strategic and operational impact and alignment with
complementary growth measures

Managing authority
◦ Overseeing application process, ensuring eligibility,
◦ Claims and payments
◦ Audit responsibility

Local ESIF Committee (each of the 39 LEPs to have one)









Local Authority
Business partners (including small businesses and social enterprise
as appropriate to the LEP area.
VCSE
Equalities and non-discrimination
Environment (with relevant expertise in e.g. sustainable
development)
Trade Union and employer representation
Higher Education
Education, skills & employment (eg Local Skills Partnership Board
/Colleges)
Managing Authorities for each of the ESIF funds and BIS Local

The Local ESIF Committee is responsible for :
◦ Ensure local operational delivery
◦ Oversee development of pipeline of proposals
◦ Make recommendations for investment
◦ Monitoring performance at local level


Majority of LEP areas have established the ESIF Committee
Specific tasks are being undertaken to ensure “ a prompt start
to project activity once Operational Programmes are
approved” (DCLG Oct 14)
• Working closely with Opt-In Organisations to advise on the detailed
activity and planned spend in each LEP area.
• Considering how project calls may be structured, building on Local
Implementation Plans
• Local Implementation Plans are basic plans which include output
information; spend profiles; planning for the first round of projects calls
for 2015 and confirming allocations to Opt-In organisations.
• All LEPs have submitted these to Govt and they are being reviewed.






There are 2 approaches:
First is engagement with LEPs to influence
Policy
Type of provision
Procurement Methods
Typically;
◦ National representative bodies NCVO, TSNLA , NIACE etc
◦ Local sector networks and partnerships, Skills
Consortia,Learning Partnerships, CVSs, Social Enterprise
Partnerships etc
Second is as a Provider:
2 routes for making funding available: ‘calls’ or ‘Opt-Ins’




Call: open invitation for applicants to submit proposals
against a published specification issued by the Managing
Authority
Opt-in: a procurement process undertaken by the Opt-In
organisations working with LEPs
For ESF programmes delivered through Opt-in
organisations, applications will go through the Opt-in
Organisations who will be responsible for procuring ESF
activity
Opt in organisations include
◦
◦
◦
◦
DWP
Skills Funding Agency
Big Lottery Fund
National Offender Management Service
What Are Opt-Ins?





They are national public bodies or equivalent to national
public bodies.
They fulfil their statutory functions in relation to one or
more of the activities described in the Operational
Programme.
They have sufficient eligible match funding for an agreed
duration within the time period of the Operational
Programme.
They have sufficient infrastructure and expertise to carry
out the duties.
The providers which will receive support from the
European Social Fund are selected in accordance with
open and competitive selection procedures.
What Are Opt-Ins?





They are national public bodies or equivalent to national
public bodies.
They fulfil their statutory functions in relation to one or
more of the activities described in the Operational
Programme.
They have sufficient eligible match funding for an agreed
duration within the time period of the Operational
Programme.
They have sufficient infrastructure and expertise to carry
out the duties.
The providers which will receive support from the
European Social Fund are selected in accordance with
open and competitive selection procedures.
Opt-Ins

About 80% of ESF will be spent through Opt-Ins

All will have different procurement/grant routes

DWP/SFA will be a procurement route similar to the current
programme.

SFA wont have Minimum Level of Contracting

SFA will use ACTOR (Bravo).

SFA will have 2 or 3 procurement ‘rounds’ a year. Depending
on LEP needs.
Considerations:

Local programmes: knowledge and familiarity of local
strategies - where do you fit?

Financial pressures: push towards larger contracts
remains

Demonstrating capability: Quality standards, track record,
capacity to delivery, measuring impact

Likely to access as:
◦
◦
◦
◦
Lead contractor
Partner
Sub-contractor
Second level subcontractor
GOOD NEWS!!
The ESF Operational Programme for England says :
“Civil Society organisations have a strong track record in reaching,
engaging and supporting the most vulnerable through multi-
sectoral partnerships to ensure achievement of positive outcomes
for the socially excluded in terms of employability and ‘distance
travelled’.
They will play an important role in the delivery of ESF provision for
vulnerable groups, developed and delivered within local
communities themselves and through grass-root approaches. “


The UK Partnership Agreement signed by the
European Commission on 15th October 2014
says:
“The strategy identifies those working at the local
community level, from public, Voluntary and
Community, and Social Enterprise sectors, as well
placed to identify and drive forward the solutions
that are needed. “

Next Steps

Review project/activity fit with the LEP ESIF Strategy.




Local ESIF can be Googled easily. Most LEPs have a website
now.
LEPs have developing project pipelines. LIPs are not the last
word.
Start negotiations with potential partners, whether they are
delivery, referral or funding partners.
Identify and bid for sources of match funding.


Build relationships with the LEP team.
Timetable
Key Programme Dates



December: Operational Programmes expected to be adopted;
November: Calls and guidance information to be provided to
partners;
December/January: Designation of the GPB as the formal
Programme Monitoring Committee (PMC) for Structural Funds
in the Growth Programme.
End-October
 LEP areas produce indicative outputs and spend forecasts* as
preparation for the Operational Programme discussions with
the European Commission. *Local Implementation Plans
Mid-October
 First LEP Area ESIF committees meet in shadow form and start
to discuss pipeline, CLLD plans and Local Implementation
Plans.
February
 MA finalise specifications with local partners and prepares
first call
For operations as specified in Local
Implementation Plans
For Opt-in activity
Spring 2015 onwards

First expected investments on the ground, including through
Opt-ins






The general slow progress of programme starts for this new
period has triggered a serious issue which could lead to
significant delays in further OP adoption:
With so many OPs now not due to be agreed until 2015, the EU
will need to transfer the commitments for 2014 into 2015 and
thus possibly to amend the EU’s Multiannual Financial
Framework.
The consequence of this could delay agreement of the UK’s
operational programmes by 6 months.
The English ESF Operational Programme has received formal
written comments and a number of issues still need to be ironed
out.
DCLG has not yet received written comments on the ERDF draft
Operational Programme; it is understood this has a greater
number of issues to be resolved.

www.networkforeurope.eu
www.lepnetwork.net
www.europeanfundingnetwork.eu

john.hacking@networkforeurope.eu

