Guidance

[Withdrawn] 063/21 Confirming arrangements for the ESF Project Change Request extension and additional funding process to replace Open Calls.

Updated 16 August 2024

The information in this Action Note is out of date and should not be used. This Action Note was withdrawn on 13 June 2023 and is published here for information only.

Date Issued	30 March 2021
Review Date	30 November 2021

Who should read

This Action Note is for the attention of existing ESF Direct Bid beneficiary organisations who are contracted directly with the ESF Managing Authority. Please note the contents of this Action Note do not apply to Greater London Authority beneficiary organisations.

In addition, the ESF Managing Authority has agreed with the New Anglia and Solent Local Enterprise Partnership(LEP) areas that the process set out in this Action Note does not apply to projects in those areas.

Purpose

As set out in the note to ESIF Sub-Committee Chairs, dated 23 February 2021, the ESF Managing Authority ESF Reserve Fund Calls Proposals process, which has been the primary mechanism for identifying and authorising Calls to commit remaining ESF programme funds has now ceased. No further bids for funds to the ESF Reserve Fund, other than those agreed with the ESF LEP Lead and factored into remaining Programme funds, will be considered.

Instead, to support local areas continue to address needs caused by the impacts of the COVID-19 pandemic and to enable the commitment of remaining programme funds, existing ESF projects who meet the criteria set out in this Action Note are invited to submit Project Change Requests (PCRs) to seek an extension and additional funding for projects to continue to end December 2023. Further details are set out further in this note.

Background

A key priority going forward is to ensure the 2014-2020 ESF England Programme is able to respond swiftly to mobilise support to vulnerable people and target groups.

A recent consultation with local ESIF Sub-Committee Chairs indicated that the most helpful approach to support local needs to be addressed would be by enabling existing projects to continue through to the end of the current programming period, rather than relying on the current open Calls approach. Based on their feedback, the ESF Managing Authority wrote to Local ESI Funds Sub-Committee Chairs on 23 February 2021, confirming that the open Calls approach, including the Reserve Fund Call Proposal process, had ceased with immediate effect.

Instead, the PCR process will be used, without the need to launch a corresponding open Call, for existing well performing projects to apply for additional funds where this will support local areas to meet support needs and deliver local recovery plans. This approach also has the support of the ESIF Growth Programme Board for England.

All current Calls, which are live at the point of this Action Note being published, will close in line with the published closure date. Final calls that have already been approved through the Reserve Fund process will be published as planned.

Scope of the extensions approach and project criteria

All extension requests will be limited to no more than a 50% increase against the total value of the project’s Funding Agreement (if the value of the project has increased since the original Funding Agreement, as long as any increases to the original project value were as a result of an application in response to an open call then the increase that you can request now will be limited to 50% of the revised value). Extensions will not be time limited, although all projects need to have financially completed (have a proposed Financial Completion Date and all project costs defrayed) no later than 31 December 2023. Project extensions must be focussed on the same type of provision, and to the same target group as the existing project. Extension requests must ensure there are no substantial changes to the scope of the revised project.

It should be noted that this process only applies where projects are seeking additional funding. If you are seeking a time-only extension, then you should engage with your Contract Manager as normal.

In order for an application to extend an existing project to be considered, projects must meet the following criteria:

Projects must:

1. Be up and running, with at least 6 months of delivery activity completed (and have signed and returned their Funding Agreement (FA) and any outstanding variations).

2. Be up to date with their claims – with all claims up to the previous quarter having been submitted.

3. Be up to date against their profile of expenditure – as agreed in their FA.

4. Be up to date against their profile of outputs – as agreed in their FA.

Criteria number 3 and 4 will allow for tolerance against the profile in the project FA as follows:

Projects with a FA signed pre-April 2019

• projects will need to have achieved at least 80% of the contracted expenditure profile and 50% outputs profile up to and including Quarter 1 2020 (pre-COVID-19); and

• at least 50% of expenditure profile and 20% outputs profile for the Quarter 2 2020 to Quarter 1 2021 period in recognition of the impact COVID-19 may have had on project delivery

Projects with a FA signed between 1 April 2019 and 31 March 2020

• projects will need to have achieved at least 50% of contracted expenditure and outputs profiles up to and including Quarter 1 2020 (pre COVID-19); and

• at least 50% of expenditure profile and 20% outputs profile for the Quarter 2 2020 to Quarter 1 2021 period. These requirements recognise the impact of project start-up activity during the first months following issue of the FA and are in recognition of the impact COVID-19 may have had on project delivery

Projects with a FA signed from 1 April 2020 onwards

• in recognition of these projects having entered into FAs with the Managing Authority since the COVID-19 pandemic hit, projects are required to have achieved at least 50% of expenditure profile and 20% of outputs profile

Please note the process set out in this Action Note does not affect the existing arrangements for a project applying for an extension in time only.

Action

Existing projects who wish to submit a PCR will need to demonstrate the extent to which they meet the criteria as set out above by completing and submitting a PCR Self-Assessment Checklist along with a completed PCR Application Form. These can be requested via the following email address: esf.pcrsubmissions@dwp.gov.uk.

Only in the situation of the project considering they meet the criteria should they then submit the completed Self-Assessment Checklist and PCR Application form by emailing them to the same email address as provided above. Please include in the email subject box your project name, EClaims reference number and the quarter and year in which your project is currently due to end.

The deadline for receipt of the completed Self-Assessment Checklist and PCR Application form is 7 May 2021. The Managing Authority will not be able to consider PCRs requesting additional funding, that are received after this date.

Please note all projects need to have financially completed (i.e. have a proposed Financial Completion Date and all project costs defrayed) no later than 31 December 2023 with the full and final claim expected no later than February 2024.

What happens after a PCR is submitted to the Managing Authority?

The Self-Assessment Checklist and PCR will be reviewed by your Contract Manager. This will include assessing the extent to which the project meets the required criteria and the details of the increased funding and delivery timescales being applied for. The Contract Manager will use this information to determine if your PCR can be formally submitted into the Appraisal process. The Managing Authority aims to inform beneficiary organisations of this decision in early June 2021.

The Managing Authority will then appraise the PCRs using the following indicative timelines, aiming to complete appraisal and issue revised Funding Agreements in a 60-day window:

Projects due to end in 2021

appraisal window 1 June to 31 July

Projects due to end in 2022

appraisal window 1 August to 30 September

Projects due to end in 2023

appraisal window 1 October to 30 November

Pending the total number of PCRs received, there is potential for PCRs relating to projects ending in 2022 and 2023 to be appraised ahead of the timelines set out above.

Contact

If you have any questions about this Action Note please contact: esf.2014-2020@dwp.gov.uk