Programme Overview

The Department for Work and Pensions (DWP) and the European Commission formally agreed and adopted the European Social Fund (ESF) Operational Programme (OP) in September 2015. It was then launched by the Minister for Employment in January 2016.

As part of the Government’s overall growth activity, the ESF Programme has been supporting projects across the country since 2015 and, through the EU Exit agreement, will continue to do so until 31st December 2023.

ESF is delivered through a range of partners, including other Government Departments and bodies across public, private and third-party sectors.

EU funds require co-financing from either public or private sources, therefore, ESF in England works in part with four national Co-Financing Organisations (CFOs):

• Department for Work and Pensions (DWP)
• Education and Skills Funding Agency (ESFA)
• Her Majesty’s Prison and Probation Service (HMPPS)
• National Lottery Community Fund (NLCF) previously known as Big Lottery Fund (BLF), through their Building Better Opportunities programme (BBO)

DWP acts as the Managing Authority for the Programme.

The objective of the Programme is to contribute to local growth by improving social inclusion, education, training and equality for those furthest from the Labour Market and has an ultimate aim to bring these individuals in, or closer, to sustainable and continued employment, with additional targeted focus on certain vulnerable groups.

ESF supports efforts to reduce employment gaps, for instance by ensuring an appropriate proportion of participants are: Women; Over 50; Disabled; or from Black, Asian and Minority Ethnic (BAME) communities, and specific activities are delivered to tackle youth unemployment in areas where the rate is particularly high. This has been especially important in providing targeted recovery from the impacts of COVID-19.

The Programme also aims to develop a skilled and adaptable workforce which, in turn, increases productivity. By improving access to lifelong learning for all, ESF supports a range of activities; from helping people tackle basic skills needs, through to developing intermediate and higher levels skills that they and their employers need.

Over its duration, the total value of the Programme is €3.49bn.

At the end of December 2022, £2.94bn ^{[footnote 1]} of funding had been allocated to 730 contracts, with £2.18bn ^{[footnote 1]} claims paid to projects.

These values are provided for comparison against the Programme value purposes only and have been calculated using an Exchange Rate of 0.88549. Allocation is not calculated, and claims are not paid in Euros.

ESF is only used where there is a demonstrable need, such as where there are gaps in the Labour Market provision provided by DWP or government, or where ESF will add value to, and not duplicate, existing nationally funded provision to support employment and skills.

The map below shows the 38^{[footnote 2]} Local Enterprise Partnership (LEP) areas where ESF England is delivered. The ‘Categories of Region’ (CoRs) indicate the level of ESF funding provided by the European Union (EU), with the remainder being made up of ‘Match’ funding from either public or private sources.

There were originally 39 LEP areas, but Northamptonshire merged with South East Midlands.

Less Developed – up to 80% EU funding

Transitional – up to 60% EU funding

More Developed – up to 50% EU funding

Each LEP area has developed strategies to ensure funding focuses on local needs. These strategies inform the Calls for funding in each area that are published on GOV.UK by the Managing Authority and include all ESF CFO tendering opportunities.

Implemented Activities

The programme contributes to policies to add growth to the employment rate by increasing the numbers of unemployed and economically inactive people entering into sustainable jobs.

The types of activities currently being delivered with the aid of ESF funding are detailed below:

1. Young people and the Youth Employment Initiative

ESF is being used to fund support which prepares young people for working life, by reducing the number of young people who are not in education, employment or training (known as NEET) or are at risk of becoming NEET.

Prior to the COVID-19 pandemic, youth unemployment had been at a record low, however, ESF interventions for young people are more critical now than ever to help boost their skills or prepare them for work during these challenging times for Society.

In addition, ESF helps contribute to continuing efforts in reducing child poverty for low income households.

The Youth Employment Initiative (YEI) provides a separate European funding source that complements ESF funding in areas where youth unemployment is especially high. YEI Projects demonstrate the positive impact ESF is having in supporting young people from some of the most disadvantaged backgrounds to overcome multiple barriers, gain new skills and move in, or closer, to employment and training.

2. Support to improve mental health

Poor mental health can often be a barrier to successful employment due to the day-to-day side effects of a condition and, by using a variety of approaches and activities that engage and motivate people, ESF funded projects are helping to tackle the impacts of mental health issues. They also recognise the impact of isolation for people living in rural parts of the country and are helping participants manage and overcome this.

3. People with disabilities and health conditions

The effects of a disability or health condition can make it more difficult for a person to find and sustain employment. ESF projects provide tailored support to help people address these additional barriers to finding work and support them in entering the labour market.

4. Community level funding opportunities

ESF helps support the specific needs of projects that work directly with local communities, often working with marginalised and socially excluded people. This enables small, locally based organisations gain access to funding that will provide support to the areas with which they are familiar.

5. Individualised job preparation support

Individualised support, which includes providing one-to-one mentoring or information, advice and guidance, is used effectively to help people navigate the services available to them, and attain or improve job-searching skills, such as interview techniques and CV writing.

This type of personalised support helps remove barriers to gaining employment or accessing other programmes funded by the UK Government, and can continue to help sustain employment after that person has been hired.

6. Upskilling unemployed people

Sometimes an unemployed person’s barrier to work is a lack of relevant skills for the workplace, for example, they might lack digital skills, basic English and Maths qualifications, or more industry-specific skills needed for the local area. ESF projects are providing this type of upskilling support to remove potential employment barriers.

7. Upskilling the Workforce and Working with Employers

Across England, ESF projects are working with local industry and employers to determine skills gaps and offer provision to fill these gaps with potential new recruits, in addition to providing support to upskill existing employees.

As a result of such projects, employers can highlight where opportunities exist for employment and work experience, to successfully fill any gaps by successfully bringing together the needs of the local economy with the local workforce.

This support increases the knowledge and capabilities of the workforce which, in turn, encourages business growth.

8. Working with Partners

In addition to any mainstream support, ESF can add value to local areas by bringing partners and services together, which enables project participants to access valuable advice and support that meets their needs. Partners and agencies are working with participants to gain new skills and confidence to move them closer to, and into, employment.

9. Innovative approaches

ESF funding provides the opportunity for projects to deliver support using new and different approaches, such as maximising technology to engage and train participants, or developing innovative solutions to solving problems and improving services.

Case Studies – Good Practice

There are several case studies for ESF’s diverse projects on GOV.UK but a few examples of these are detailed below and reflect the breadth and diversity of ESF programme activity.

East and South East Region – DWP CFO £11,766,664.82 (14,007,934.3)

Work Routes provided the unemployed and disadvantaged in the labour market with the skills and support to move into sustainable work and to remain in employment. The project, delivered by Reed in Partnership and co-funded by the Department for Work and Pensions offered individuals targeted help and support to address any barriers to work they faced.

A range of specialist advice was available including skills training, health and wellbeing advice and help finding and applying for suitable vacancies. Work Routes provided basic qualifications such as Customer Service, Food Hygiene, and Health and Safety. It worked in conjunction with employers, to devise pathways to employment, upskilling and support during employment.

To 30 September 2022, the project worked with 6,264 participants. On leaving 103 gained basic skills qualification and 1,592 started work.

London – HMPPS CFO3 – £17,780,048 (€21,166,723.81)

Across London, up to 30 September 2022 the CFO3 programme has worked with 5872 people, of which 77% (4504) people were homeless or in temporary accommodation.

CFO3 work with participants to address several barriers including disclosure support, goal setting, training in building crafts and tiling, job searching and interview skills, debt relief and support with opening a bank account. The CFO3 provider, Shaw Trust work on a 1-2-1 basis to ensure that individuals are fully prepared for the labour market, including meeting with potential employers so that participants have a chance to ask any questions pre-interview.

The project is delivered as part of an ESF co-funded HMPPS (His Majesty’s Prison and Probation Service) CFO3 programme to help reduce reoffending. CFO3 offers a ‘through the gate’ service with a focus on preparing those considered furthest from the labour market for release in custody, followed by training and employment. CFO3 are based in 89 prisons across England.

Midlands – £10,329,547 (€12,291,127)

The Skills Support for the Workforce programme helps support small and medium businesses in Greater Birmingham and Solihull to upskill their employees with training courses and qualifications to help their business grow and boost the local economy.

The project works with businesses to develop a bespoke training programme relevant to business needs. The project has a network of expert training providers who can deliver 100s of fully funded and accredited training courses covering a range of subjects such as: IT and Digital Skills, Leadership and Management, Engineering, Manufacturing, Construction, Health and Social care, Customer Service, Business Administration, and many more.

The project is delivered across the area by SERCO and co-funded by the Education and Skills Funding Agency.

To 30 September 2022, it has worked with 3019 participants. On completion 920 had moved into an educational setting or gained an in-work progression.

North East, Yorkshire and The Humber – Durham Directions – £7,192,620.04 (€8,562,642.90)

The Durham Directions Programme supports young people aged 15-24 and is delivered under the brand name ‘Durham Works’. It consists of preventative and re-engagement elements. The preventative element is delivered in schools, colleges and sixth forms to young people identified as at risk of not making a successful transition into post-16 learning. The participants receive a combination of careers guidance, one-to-one mentoring support and the opportunity to participate in work related learning activities.

Young people supported through the re-engagement element are not in education, employment, or training (NEET) and or unemployed. The participants receive transition support, the opportunity to obtain English and maths qualifications, and access to a range of provision to support their progression into education, employment, and training.

Durham Directions is delivered by Durham County Council in conjunction with delivery partners and subcontractors. To 30 September 2022 the project has worked with 2730 participants; and on leaving 932 progressed into education, employment, or training, of which 230 people started work.

North West (New Leaf is part of a Big Lottery Funding agreement in the Cheshire & Warrington LEP area) – £19,570,722.34 (€23,298,478)

New Leaf is an employment mentoring project for people with significant barriers to employment in Cheshire and Warrington. In addition to mentors, the programme provides money advice, training, mental health support, volunteering and work placements and self-employment support.

The project, co-funded by The National Lottery Community Fund supports people to move closer to employment, including job search; or start education or training courses. Other outcomes include improvements in self-confidence; support networks; lifestyle; aspirations; financial inclusion and in health and wellbeing.

To 30 September 2022, the project has worked with 5791 participants. On leaving 1790 have gone into employment, training, or education.

South West – Business Clusters £6,514,368.32 (€7,755,200.38)

The Business Clusters project will engage and support at least 580 small and medium enterprises and micro-businesses in Cornwall and the Isles of Scilly to determine their workforce skills needs and co-design and pilot new training programmes, enhancing the industry-relevance of the local educational offer.

Led by Truro and Penwith College, the Business Clusters partnership includes Cornwall Chamber of Commerce, Cornwall Council, Cornwall Marine Network, Digital Peninsula Network, Kernow Health CIC, Software Cornwall and The Cornwall College Group.

Key activity strands include:

• working with employers to determine current and emerging skills needs that will inform innovative, collaborative and labour market relevant training for businesses
• engaging businesses in the design, development, and trialling of new skills programmes, including Apprenticeship Standards, Further Education and Higher Education programmes, to meet emerging gaps in provision; and
• supporting businesses to benefit from new talent, skills, and approaches by creating collaborative projects, work placements, internships, and apprenticeships

Communication

ESF is part of European Structural and Investment Funds (ESIF) which has a dedicated site at www.gov.uk/european-growth-funding.

This website:

• contains key programme documents, guidance and governance information; plus annual booklets featuring project case studies to publicise activities and achievements
• provides access to the bespoke, fully searchable ‘funding finder’ tool where project calls for the ESIF programme are located. A separate page provides access to funding opportunities from ESF CFOs
• hosts a searchable list of beneficiaries
• sets out branding and publicity requirements (including access to logos and poster templates) to support partners/projects in their delivery

‘England European Social Programme 2014 to 2020’ booklet

This was published in 2023 and can be found at England European Social Fund Programme 2014-2020 on GOV.UK.

Social media activity

You can follow ESIF activities @esif1420england.

ESIF also has a dedicated YouTube channel, ESIF YouTube channel, uploading films, including some highlights from successful projects.