[Withdrawn] 057/20 Eligibility Rules & Programme Guidance Revision -- Changes to the Eligibility of European Economic Area Nationals (EEA) for ESF Support from 1 January 2021 and a minor amendment to Participant Allowance section
Updated 5 December 2024
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The information in this Action Note is out of date and should not be used. This Action Note was withdrawn on 14 June 2023 and is published here for information only.
| Date Issued | 21 December 2020 |
| Review Date | 21 December 2021 |
Who should read
Direct Bid projects, CFOs, IBs all signed up for ESF Action Notes
Purpose
The Action Note sets out the new participant eligibility criteria for ESF support which will apply from 1 January 2021 to align with the new Immigration Rules that come into force on 1 January 2021. The ESF Eligibility Rules and Programme Guidance will be amended to reflect the change and published on 21 December.
A minor change has also been made to the Participant Allowance section to include the an additional paragraph which due to an oversight wasn’t included in the new combined guidance.
Background
On 31 December 2020 the transition period following the UK’s departure from the European Union will end. European Economic Area (EEA) nationals who arrive in the UK from 1 January 2021 will be subject to new Immigration Rules.
Implications for ESF
In order to be eligible for ESF support, EEA nationals already in the UK must meet one of the following conditions:
- hold settled status granted under the EU Settlement Scheme (EUSS)
- hold pre-settled status granted under the EUSS.
EEA nationals arriving in the UK from the 1st January must hold leave to remain with permission to work granted under the new Points Based Immigration system to be eligible for ESF support.
EEA nationals and their family members who are lawfully resident in the UK by 31 December 2020 (the end of the transition period) but have yet to apply for status under the EUSS, will have their rights protected during the grace period which ends on 30 June 2021 (and until the final determination of any EUSS application made by that date). They will therefore be eligible for ESF support.
Non-EEA nationals who hold leave to enter or leave to remain with a permission to work (including status under the EUSS where they are an eligible family member of an EEA national) are also eligible for ESF support whilst in the UK.
Projects seeking further information about the new rules should access the published Home Office guidance.
Some examples showing how an EEA national and an ESF project may be impacted by the new rules are set out below:
Example 1
An EEA national with EU Settlement Scheme (EUSS) (settlement or pre-settlement) who is currently on an ESF project or about to be enrolled on an ESF project. This person is eligible for ESF support under the new rules.
Example 2
An EEA national with no EUSS status currently on an ESF project or about to be enrolled on an ESF project. Under the new rules, this person is eligible for ESF support, but the participant must apply for EUSS by the 30 June 2021 if they intend to remain in the UK and to remain on the project beyond that date. During this period, they are eligible for ESF support until their application for EUSS is decided. If they are successful, good practice would be to inform the project who should ask for evidence to confirm their status if they are participating on the project beyond 30 June 2021.
Example 3
An EEA national being enrolled on a project from or after 1 January 2021 will need to meet the new requirements by providing evidence they hold either:
- settled status granted under the EU Settlement Scheme (EUSS); or
- pre-settled status granted under the EUSS.
If the person does not hold either of the above, but is an EEA national, then they are covered by the grace period up to 30 June 2021 as outlined in example 2 above.
A minor change has also been made to the Participant Allowance section to include the following paragraph: Small incentive/bonus payments or gifts are allowable. These must be small and proportionate. No individual may receive cash or gifts as incentives in excess of £50 per project.
Action
Recipients to note the new participant eligibility criteria which will apply from 1 January 2021 and the additional paragraph added to the Participant Allowance section.
The additional paragraph added to the Participant Allowance section will apply immediately.
Contact
If you have any questions about this Action Note or the guidance products, please contact esf.2014-2020@dwp.gov.uk