Guidance

068/21 Future ESF Programme Delivery arrangements, including the Direct Bid claims process which apply from Quarter 3 2021

Updated 16 August 2024

Date Issued	29/07/2021
Review Date	31/12/2023

Who should read

This Action Note is to all European Social Fund (ESF) beneficiary organisations (Direct Bid Grant Recipients and Co-Financing Organisations), the Greater London Authority and other Intermediate Bodies.

Purpose

This Action Note informs ESF beneficiary organisations about ongoing delivery arrangements of the ESF Programme, in the context of the government having moved to step 4 of its roadmap to ease restrictions in England. It refers to the ongoing implementation of the ESF business process easements that have been introduced since March 2020 and also sets out the arrangements for the Direct Bid claims process, which will apply from Quarter 3 2021.

Background

Since the start of the COVID-19 pandemic in March 2020 the ESF Managing Authority (MA) has worked closely with European Structural and Investment Fund (ESIF) partners across government, ESF stakeholders and with the European Commission to develop measures that respond to the impact of COVID-19 on projects and their local communities.

Our focus has been on measures to help existing and new projects get through this period through taking practical steps to adjust some activities and processes in line with needs that emerged.

A range of flexibilities were introduced to ensure continuity of project activity and also payments to projects experiencing delivery difficulties.

For example, we have been able to consider a re-focus to existing projects where that would enable the immediate impacts of the COVID-19 pandemic to be addressed; and have worked collaboratively to agree appropriate amendments to the relevant Funding Agreements, whilst ensuring that there is no duplication against other UK Government support measures.

Flexibilities have been introduced to ensure payments continue to flow to projects experiencing delivery difficulties at this time, such as:

• supporting projects who need to amend their commercial model from a ‘Payment by Result’ model, to a ‘Cost based’ model during the COVID-19 phase

• adapting our Article 125 activities to make greater use of electronic and desk-based methods whilst travel restrictions and social-distancing measures are in place

• supporting projects in delivering their activities to participants and businesses via remote and other innovative means, whilst ensuring regulatory requirements continue to be met and whilst adapting our evidence capturing requirements

To help ensure open and consistent messaging an ESIF COVID-19 Response page on GOV.UK was set up in March 2020 to provide the latest information, including on easements that have been implemented.

This included an ESF COVID-19 Response Q&A which has been added to, reviewed and updated regularly by the Managing Authority. ESIF and ESF e-Bulletins and GOV.UK notifications informing beneficiaries and delivery partners of these Q&A updates have also been issued.

In recent months the published ESF COVID-19 Response Q&A has been revised. Where appropriate, Q&A that have been ‘closed’ refer to relevant supporting information such as ESF Action Notes and/or guidance.

The ESF Managing Authority has also issued the following ESF Action Notes that have advised ESF beneficiaries, delivery partners and stakeholders about specific issues and easements:

• 046/20 COVID-19: Impact on ESF Programme: Managing Authority update (issued 20 March 2020)

• 047/20 Launch of GOV.UK European Structural and Investment Funds Coronavirus Response website page (issued 26 March 2020)

• 049/20 COVID-19 – Managing Authority response to support Grant Recipients (issued 29 April 2020)

• 051/20 Temporary Framework for State Aid for COVID-19 responses (issued 14 July 2020)

• 052/20 Hourly rate salary costs for project staff who are self-isolating/ill due to COVID-19 and unable to work (issued 28 July 2020)

• 056/20 Update to Action Note 052/20: Hourly rate salary costs for project staff who are self-isolating/ill due to COVID-19 and unable to work and who are working on ESF projects that started after Q4 2019 claim period. (issued 20 December 2020)

• 061/20 Updating Cross Cutting Theme Implementation Plans for COVID-19 related Action and Request for Examples of Good Practice (issued 17 March 2021)

• 066/21 Use of Electronic signatures within ESF Programme Grant Recipient documentation and as verification evidence from ESF participants (issued 10 June 2021). In 2020, the Managing Authority introduced COVID-19 response easements that electronic signatures can be used on project documentation; and by participants as verification that they are on an ESF project. Questions 2 and 15 of the ESF COVID-19 Response Q&A refer. Action Note 066/21 sets out that this use of electronic signatures as evidence will remain in place until the end of the ESF Programme

Action

Ongoing Delivery Arrangements

On 19 July the government moved to step 4 of its roadmap to ease restrictions in England. This new phase of continued caution whilst managing the risks of COVID-19 allows many of the legal restrictions that the Government has imposed through the pandemic to be lifted. Some cautious guidance remains on understanding and mitigating risks as we continue to live with COVID-19.

Step 4 of the roadmap allows employers greater freedom and control to take decisions regarding working arrangements for their organisations and their people. In line with the Government’s expectations of our gradual return to the workplace over the summer, we anticipate ESF beneficiary organisations will take the opportunity to review project delivery arrangements and the working arrangements of their people. This might include the movement of employees who have been working remotely in response to COVID-19, gradually moving back into their offices on whatever basis is most appropriate.

We anticipate these gradual changes will enable a return to more collaborative working between the Managing Authority and our delivery partners. This will include programming activities such as on-site visits by the Managing Authority and other bodies, which are important for the effective management of the Programme and have not been possible since early in 2020.

ESF beneficiaries are asked to note that the ESF Managing Authority has reviewed its impact on COVID-19 easements. This is part of a phased transition to ongoing delivery arrangements that will take into account further government announcements.

We recognise that ESF beneficiaries need advance notice of changes to business processes, and as part of a collaborative approach to moving forward, will use ESF Action Notes as the primary communication channel for notifying you of changes, including the withdrawal of easements. Your ESF Contract Manager will be able to work with you and assist with any queries you may have.

Direct bid claims process to apply from Quarter 3 2021

ESF Action Note 049/20 (see details above), published on 29/04/20 announced the introduction of temporary changes to the Direct Bid Claims process for the ESF programme as a result of easements to support Grant Recipients and reduce the impact of COVID-19.

This Action Note confirms that with regards to the changes introduced to the Direct Bid Claims process within Action Note 049/20, the Managing Authority is now removing these easements, and reverting back to the pre-COVID-19 published claims process for Quarter 3 2021 claims onwards.

Key changes include the following:

• the requirement to submit a full and complete claim in line with the details set out in Claims Process for Grant Recipients – this includes, but is not restricted to, full and accurate submission of the Transaction List, Progress Report, and Participant Data Schema (PDS)

• for all claims, including final claims, where errors are identified, the Managing Authority will liaise with the Grant Recipient to ensure the errors are corrected before the claim is paid

• Desk Based Evidence Checks (DBECs) will revert to being completed before the claim is paid, and will be progressed in line with section 12 of the Claims Process for Grant Recipients

Grant Recipients are required to follow all aspects of the relevant guidance within the published ESF claim applications and Self-Declared Adjustments with effect from the Quarter 3 2021 claim.

Grant Recipients are now required to review their systems and processes in respect of all claims which were paid by the Managing Authority under the easements process. Projects have until 29 October 2021 to submit Self-Declared Adjustments to the Managing Authority in respect of costs where they have now established, for example that the supporting evidence is not available, or other errors in the claim are identified. This is not withstanding any Article 127 activity. Where a project has been notified that a claim is subject to an A127 audit, Self-Declared Adjustments cannot be submitted in respect of any errors detected on that claim after the date the Managing Authority is notified of the Audit unless there is evidence that the Grant Recipient has previously notified the Managing Authority of their intention to submit a Self – Declared Adjustment for the error.

Self-Declared Adjustments submitted to the MA in respect of missing evidence and/or information after this date will be treated as Irregularities.

Changes to other ESF business processes

ESF Action Note 066/21 sets out that Electronic Signatures will remain an appropriate evidence of audit trail for the remainder of the programme. More detail is in the Background section above.

The Managing Authority will use the ESF Action Note process to update ESF beneficiary organisations to further revisions to existing easements or for any other changes to programme delivery processes.

Contact

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