# MPs urge swift movement on European Social Fund successor to avoid funding disaster

- Link: https://fundraising.co.uk/2018/04/05/mps-urge-swift-movement-european-social-fund-successor-avoid-funding-disaster/
- Published: 2018-04-05T08:55:06+01:00
- Author: Melanie May

**The Work & Pensions Select Committee has called on the Government to proceed urgently
with designing a successor to the European Social Fund to ensure there is there 
is no gap between existing and new funding streams when the UK leaves the EU.**

The European Social Fund currently provides the UK with £500 million per year to
fund programmes that deliver employment and skills support to people poorly served
or neglected by mainstream provision, such as disabled people, offenders and prison
leavers, the long-term unemployed and people with multiple barriers to work.

While the Chancellor of the Exchequer announced in 2016 that Government would continue
to fund existing ESF programmes scheduled to finish after Brexit, and the Government
has committed to a UK Shared Prosperity Fund (UKSPF), which will serve a similar
purpose to the existing European Structural and Investment Funds (of which ESF is
one), detailed design proposals have not been forthcoming. While the Government 
has said it plans to hold a public consultation on the future of the ESF later this
year, it has yet to commit to a timeframe.

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In the Committee’s [report on the Fund](https://publications.parliament.uk/pa/cm201719/cmselect/cmworpen/848/84802.htm),
published on 4 April, it pushes the Government to come up with a detailed design
of a successor to “guarantee certainty for providers and communities and avoid a
potentially disastrous interruption in funding” following Brexit.

It also highlights out several areas where it believes a successor must better the
European Social Fund, stating that retaining a separate budget within the UK Shared
Prosperity Fund (UKSPF) to support disadvantaged communities and groups is essential.
It states that while the budget should remain separate it should be complementary
to national provision, funding both long-term strategies for local areas and “fire-
fighting” responses to local crises, and that the new fund should also remove the
siloes that prevent truly wrap-around, holistic support reaching communities and
individuals. It must also pare back the paperwork that accompanies the current fund.

The Committee has recommended that the detailed design of the ESF’s successor should
include:

 * establishing a new arm’s length body, or creating an arrangement with an existing
   one, to hold the fund’s budget, dovetailing existing funding streams so programmes
   can meet effectively all of their participants’ needs;
 *  retaining a separate fund within the UKSPF for employment support. The separate
   fund should focus on innovative projects that offer work opportunities and skills
   development to disadvantaged groups (for example, disabled people) in areas of
   clear economic and social need.
 *  ensuring flexibility of local funding mechanisms for both longer-term (with 
   funding cycles of at least seven years, as in the current fund) and short-term
   programmes; and
 * reducing overall bureaucracy for providers enabling them to focus on what really
   matters: value for money, building understanding of “what works” in employment
   support, and fostering new entrants.

It believes that these features are vital to the success of a replacement fund and
would also show that the Government is committed to joined-up policymaking and breaking
down silos. The Committee recommends that the Department responds to its report 
by setting out how it will meet these objectives, with a timetable for doing so.

 * **[£105 million EU funding proposed for N Ireland](https://fundraising.co.uk/2018/07/01/105-million-eu-funding-proposed-n-ireland/)**(
   1 July 2018)
 * **[Community group asks candidates to sign pledges on EU and funding](https://fundraising.co.uk/2019/04/28/community-group-asks-candidates-to-sign-pledges-on-eu-and-funding/)**(
   28 April 2019)
 * **[EU seminar on cultural funding announced](https://fundraising.co.uk/2019/05/23/eu-seminar-on-cultural-funding-announced/)**(
   23 May 2019)

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