ESF Objective 3 Funding

Introduction

Objective 3 is a horizontal fund that provides support for projects that promote education, employment and training initiatives.

2007-2013 England ESF Programme

The Department for Work and Pensions submitted the proposal for the 2007-2013 England ESF programme to the European Commission on 5 March 2007. The proposal will now be examined by the Commission. It is expected that the programme will be agreed by autumn 2007. The proposal has been placed in the 2007-2013 section of the European Social Fund website.

Regional Skills Partnerships are now developing regional ESF frameworks for 2007-2013 on the basis of the programme proposal. The regional ESF frameworks will inform the delivery of the programme so that it adds value to regional employment and skills priorities and complements other funding streams.

It is expected that the first funding rounds under the 2007-2013 programme will be held in autumn 2007 and that project activity will start in early 2008. Further information will be placed on the European Social Fund website in due course.

Current ESF projects should continue to make plans for when their ESF funding finishes. There will be significantly less ESF funding under the 2007-2013. A Readiness Assessment Tool (revised in January 2007) is available to help projects prepare succession or exit strategies. To access the tool visit http://www.gos.gov.uk/gol/European_funding/

2000-2006 England ESF Programme

Activity under the 2000-2006 programme will continue until mid-2008. The ESF spent £578 million on employment and training projects in England in 2006. Spending in 2007 (under the 2000-2006 programme) is likely to be at a similar or even higher level. Therefore there will not be a gap between the 2000-2006 and 2007-2013 programmes.

Application Process

Bids will be assessed using a 3-stage process:

1. Eligibility (factors include equal opportunities, race and gender issues, aims and objectives, type of activity)
2. Scoring (factors include labour market need, beneficiary analysis, value for money, past performance).All projects have to pass a quality threshold before passing to the final stage
3. Appraisal (factors include type and number of beneficiaries, geographical area, project cost)

Projects

Each proposed project must meet an identified regional need. Project length is expected to be 24 months.

Funding

ESF money only provides up to 45% of the overall project cost.

Match funding

Match funding makes up the remainder of the project costs (55% in the case of ESF). It can be from public or private sources; at least 10% must be public match funding. Evidence of funding must be provided from all sources.

Eligible/ Ineligible expenditure

Eligible costs are separated into 3 strands: staff, beneficiary costs and other. Ineligible costs include financial charges, consultancy fees and capital expenditure.

Global Grants

If you have been discouraged from bidding for ESF money because of the time and commitment needed to mount a bid, global grants may be your answer. 1% of the total ESF budget has been set aside for global grants, which are small-scale funds (typically between £500 and £10,000) aimed at local groups to tackle social exclusion, unemployment and build local social capital. To find out more visit our Global Grants Page.

What You Need to Know

1. Only legally constituted organisations can apply for ESF money
2. ESF money is intended for revenue not capital expenditure
3. Bidding is competitive
4. Projects require evidence of match funding
5. Projects must be eligible

General Information

Background

The Structural Funds have been revised to increase efficiency and visibility. The total number of Objectives has been reduced from seven to three, with a new emphasis on employment.

European level

The European Employment Strategy (EES) will co-ordinate the employment policies of all member States and requires that each Member State produces yearly National Action Plans (NAPs). It has four core themes or pillars: employability, entrepreneurship, adaptability and equal opportunities.

National (UK) level

Using the four pillars the NAP sets out problems and challenges in each area and the policy measures and initiatives designed to tackle them.

National (England, Scotland and Wales) level

Operational Programmes- produced by each country; these provide a more comprehensive description of each priority together with detailed implementation and financial arrangements.

Regional level

The Regional Government Office (RGO) is responsible for drafting the Regional Development Plan (RDP). This sets out the precise regional priorities for each one of the policy fields, together with the percentage spend allocated to each policy field:

Policy Fields	National	SE	SW
1.Active labour market policies	30%	15%	26.3%
2.Equal opportunities for all, promoting social inclusion	25%	25%	26.4%
3.Lifelong learning	30%	35%	29.3%
4.Develop the skills of employed people	10%	20%	13.0%
5.Improving women's labour market participation	5%	5%	5.0%

There are differences between spending allocations dependent on the indicated regional needs.

Timetable

After the Commission has approved the programming document it is expected that bids for the new Objective 3 programme will begin in Autumn 2007.

Additional information sources

It is hoped that this brief guide has provided enough information for you to begin thinking about applications for Objective 3 ESF funding. The following information sources provide further and additional support:

Government Office for the South East
Bridge House, 1 Walnut Tree Close, Guildford GU1 4GA
Telephone (switchboard): 01483 882255

Government Office for the South West
Mast House, Shephards Wharf, 24 Sutton Road, Plymouth PL4 0HJ
Telephone: 01752 635000

SAVAGE
www.esf.gov.uk