Guidance

085/22 Additional Funding Available for European Social Fund Direct Bid Projects

Updated 16 August 2024

Date Issued

28 July 2022

Review Date

31 December 2022

Who should read

All ESF Direct Bid Beneficiary Organisations and the ESF Managing Authority

Purpose

This Action Note is to notify Direct Bid Grant Recipients of additional funding available, the criteria and process to apply.

Background

In Action Note 063/21, we invited existing ESF projects who met specific criteria to submit Project Change Requests (PCRs) to seek an extension and additional funding for projects to continue until the end of December 2023.

There is now additional funding available for existing ESF Direct Bid projects who meet the criteria set out in this Action Note. CFO Projects are not eligible to apply. ESF Beneficiaries within the Greater London Authority are not eligible to apply for funding through this process at this time.

Action

ESF is focussed on committing all the funding we have received from the European Commission. It is imperative that if your project applies for additional funding, that you are able to spend this to deliver the outcomes you commit to in the PCR.

You should be aware that failure to achieve the revised expenditure or deliverables targets could mean that action is taken under our underperformance policy, this could mean a performance penalty is applied which could include withdrawal of funding or claw back.

Scope of the extensions approach and project criteria

This process applies where projects are seeking additional funding. If you are seeking a time-only extension, you should engage with your Contract Manager (CM) as normal.

All extension requests will be limited to no more than 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 (for example, as a result of an application to an open call) the increase you can request will be limited to 50% of the revised value.

If a project has already received an increase up to 50% as a result of a PCR-submitted funding increase (for example, against Action Note 063/21), it will not be eligible for additional funding.

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.

In order for an application for additional funding 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 numbers 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 for the Q2 2020 to Q1 2021.

Applying for Funding

If you think your project is eligible to apply for further funding, please request a PCR self-assessment checklist via the central inbox. Please use the following naming convention - Name of project, EClaims reference number, the quarter and the year the project ends. e.g. ESF MA project_22S23P0207_Q2_2022.

On receipt from your CM, please complete the checklist and if you are eligible, send it to the central inbox using the correct subject heading naming convention - Name of project, EClaims reference number, the quarter and the year the project ends. e.g. ESF MA project_22S23P0207_Q2_2022.

Central Inbox: esf.pcr2checklistsubmissions@dwp.gov.uk

The CM will review your project’s performance and, if your project is eligible, they will invite you to submit your PCR on ECLAIMS by 31 December 2022.

Contact

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