Applications to the European Social Fund (ESF) in Response to New Anglia LEP s European Structural and Investment Fund Strategy
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1 Subject: Applications to the European Social Fund (ESF) in Response to New Anglia LEP s European Structural and Investment Fund Strategy Report to: Policy and Resources Committee, Thursday 6 th October 2016 Report by: Paul Cheeseman, Employment & Skills Coordinator SUBJECT MATTER/RECOMMENDATIONS This report gives details of the Council s successful application at stage 1 to the ESF and recommends approval of the project plan for a stage 2 application. 1. INTRODUCTION/BACKGROUND The council has been invited to submit two stage 2 applications to the European Social Fund (ESF), having successfully submitted outline proposals earlier in the year. These proposals have been well received by the Department for Work and Pensions who manage the ESF in the UK, and by the New Anglia LEP who designed the specifications. Both applications require match funding and consideration needs to be given to the benefits these proposals will bring to the Council and residents and the implications they might have on resources. The Council s outline proposals were in response to the ESF s Grass Roots Community Programme (revenue only) which aims to increase access to employment for jobseekers and economically inactive people. Both applications request 355,032 of ESF, which needs to be matched by the Council. Options for matching include using existing salaries, where post-holders are already engaged in activities that are contributing to the aims of the ESF projects. The deadline for stage two is shorter than normal so that the DWP can complete assessments ahead of the UK Government s Autumn Statement. Proposals assessed by then will have their funding honoured by the UK government. Thereafter, it is anticipated that new arrangements will be put in place for assessing ESF applications.
2 The council has also been invited to stage 2 for an application to the European Regional Development Fund under the same Grassroots Programme but has secured an extension from the Department of Communities and Local Government who manage the ERDF in the UK. Appropriate match funding is being identified for this proposal and this is scheduled to be put forward as an agenda item for the next scheduled Policy and Resources Committee on 18 th October. 2. Great Yarmouth s Proposal The Great Yarmouth proposal is in two parts: An Employability Worker will provide face to face support to unemployed and economically inactive residents, helping them with their job search, including manage their incomes and the transition to universal credit A small grants scheme will be made available to local community, voluntary and social enterprise organisations to deliver new and innovative employability projects which address gaps identified by the Employability Worker and others. For example, a community group running a lunch club may respond to a specification to provide work experience for people wanting to look for a job in catering. Combined, the two ESF proposals provide the council with resources for the following; 1 x FTE Employability Worker, to be co-located with the Council s Housing Options, Tenancy Management and Rent Income teams, providing tenants and residents with a dedicated resource to help people manage their transition to Universal Credit and to help them access employment and training opportunities. 1 x FTE Project Coordinator, to manage a grant scheme, providing up to 240,000 of grants to local community, voluntary and social enterprise organisations. Grants would be expected to average 5k, providing a total of
3 around 48 awards. Up to 15% ( 60,000) management costs payable to the Council The proposed start date for both ESF projects is 1st April 2017, with funding provided for three years. The ESF projects have been tested against similar employability provision that the council has undertaken, including the Big Lottery funded Neighbourhoods That Work project. As such, the following impacts are considered to be the minimum that the projects will achieve. A total of 729 residents supported by the projects to move closer to the labour market and more capable of managing their job search and Universal Credit independently. A total of 219 residents supported to move into employment six months after leaving the project. The council s Neighbourhoods That Work project is currently experiencing high and rising demand from people who are increasing their job search activity. Coupled with housing and rent teams, this means that the ESF projects have the required network of referral routes needed to ensure it can achieve the minimum impacts. In addition, the project has also secured the full backing of the local DWP team. 3. FINANCIAL IMPLICATIONS In order to secure the investment from the ESF, the Council has to be able to demonstrate 50% match funding which will come from those housing posts which are already undertaking work which will contribute to the project. The key areas that require match and the proposal for doing this are outlined below. All options are subject to final Section 151 Officer approval to ensure that the ESF projects do not result in costs to the council. This will be confirmed by the time of the Committee meeting.
4 ESF resources 1 x FTE Employability Worker 1 x FTE Project Coordinator 240,000 of grants to community, voluntary and social enterprise SMEs. Proposal for council match funding To be matched with no more than 5% of time from each member of the rent and housing teams who are already providing employment-related advice and in particular, advice on managing the online requirements of mandatory job searching and Universal Credit. To be matched by 50% of the Employment and Skills Coordinator time, as their work is already directly contributing to the project aims including work to support community, voluntary and social enterprise groups to devise new grassroots employability projects. The other 50% to be provided by Neighbourhood Managers and the Neighbourhoods That Work Project Coordinator, with both of these posts already working closely with community and voluntary groups that have an employment focus. To be matched by the grant recipients. No grants will be allocated by the ESF projects until this match funding is confirmed as eligible. Application processes have been drawn-up with the council s procurement lead. The project has secured support from the East of England Regional Funder s Forum, who will provide two representatives to help inform grant specifications assess applications and advise groups on match funding opportunities, including those provided by existing small grant programmes.
5 4. RISK IMPLICATIONS Potential Risk That the maximum 5% match on posts associated with housing and rent teams impact on their ability to undertake their existing work. That using 50% of the Employment and Skills Coordinator post to match the project coordinator means that they will not be able to support the council to identify and apply for future funding opportunities. That community, voluntary and social enterprise groups are unable to demonstrate match funding, putting the project at risk of clawback from the funder (DWP on behalf of the ESF). That the project is unable to meet the minimum outputs and results. Mitigations Only those posts that are already engaged in activities directly attributable to the ESF projects have been identified as match funding option. The additional resource of 1 x FTE employability worker will provide these posts with simplified opportunities to access support for customers that they might otherwise struggle to provide. Part of the coordinator s role in the ESF will be to support the project to consider forward planning, meaning that they will be able to continue to support funding applications that contribute towards economic growth. These grants will only be released once the project coordinator is satisfied that all match funding arrangements are in place. The project will also ensure that monitoring templates are in place so that match funding is easy to record. Similar community-led work locally, has significantly exceeded these targets. The NTW project is ahead on all Big Lottery performance indicators and experiencing high demand. The project has also been designed to include guaranteed pipelines of referrals including the internal council teams and the local jobcentre plus.
6 5. CONCLUSIONS The projects have the capacity to make a significant contribution to a key priority for the council, which relates to supporting people to access employment, address complex needs to improve life chances. In doing this, the projects will support the council to help residents to manage the transition to universal credit and their job search on-line. It will also help to maintain high levels of council housing rent collection, which are presently being impacted by universal credit and welfare reform changes. In the first 24 weeks of this year, housing benefit receipts have reduced by 5% ( 352,439) compared to the same period last year. The match funding arrangements are realistic, achievable and eligible within the rules of the ESF, complement and help in officer s day to day work and represent a zero net cost to the council. 6. RECOMMENDATIONS That subject to final approval from the Section 151 Officer, the Policy & Resources Committee approves the submission of the proposals in this report for European Social Fund in time for the deadline on the 7 th October.
7 7. BACKGROUND PAPERS Areas of consideration: e.g. does this report raise any of the following issues and if so how have these been considered/mitigated against? Area for consideration Monitoring Officer Consultation: Section 151 Officer Consultation: Existing Council Policies: Financial Implications: Legal Implications (including human rights): Risk Implications: Equality Issues/EQIA assessment: Crime & Disorder: Every Child Matters: Comment EMT EMT and specific consultation at stage one and two. Options at stage two will only be advanced with approval from the officer. Corporate plan. Covered in report. State aid and procurement, advice being sought. Covered in report. Yes, expected to have a positive impact. As above. As above.
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