Any gap in payment between the existing European Social Fund and
a new fund would be disastrous. In a report published today,
Wednesday 4 April 2018, the Work and Pensions Committee also says
the UK has a rare opportunity to “create a truly world-leading
successor” to the European Social Fund “that is the envy of
Europe” — but it must act fast. The consequences of a gap in
provision—for providers, for local areas, and for
individuals—would be “disastrous”.
The ESF provides £500million a year dedicated employment and
skills support funding for people and communities poorly served
or neglected by “mainstream” support into, and in, work.
As good as some of the present provision is, it is delivered in
siloes and is not designed to meet individuals’, families’, and
communities’ total needs. The successor fund must act as a
transition to a proper Mark II system which allows communities’,
families’, and individuals’ total needs to be catered for and not
restricted by arbitrary definitions of help.
The Committee calls on Government to:
- ensure funds are available so there is no gap between existing
and new provision
- establish a new arm's length body, to dovetail grants to
existing funding streams so programmes can meet effectively all
of their participants' needs
- retain a separate fund within the UKSPF for employment support
for disadvantaged groups and communities
- ensure flexibility of local funding mechanisms for both
longer-term and short-term programmes; and
- cut bureaucracy for providers, in getting money to projects
that work or to new projects that show entrepreneurial skills
Rt Hon MP, Chair of the Committee,
said: “We now have an historic opportunity to create a truly
fit-for-purpose successor to the ESF. The Government must act
quickly so that those excellent existing suppliers are not
bankrupted. Effective reform here offers the Government an
important new chance to begin to fill our skills gap from the
community upwards, instead of having a top-down approach.’
Notes to Editors:
The European Social Fund is distinct from funding for other
growth-boosting investments such as infrastructure, and allows
local areas to fund both long-term strategies and “fire-fighting”
crises such as the collapse of a major employer: re-training and
re-employing 6,000 automotive workers in the wake of Rover’s
collapse in Birmingham is a prime example given in evidence to
the Committee.
The future of the European Social Fund inquiry
