Guidance

UK Shared Prosperity Fund - Northern Ireland: project competition

Published 14 December 2022

This guidance was withdrawn on 31 March 2023

The economic inactivity competition has now closed. This document is available for reference purposes only.

Applies to Northern Ireland

Key Information

Competition reference: UKSPFNI-COMP-PS1-2022-23

Competition name: UKSPF Northern Ireland – Economic Inactivity Competition

Investment priority: People and Skills

Indicative funding available: £42,000,000

Location: All parts of Northern Ireland

Funding period: 1 April 2023 to 31 March 2025

Competition Opens: 14 December 2022

Competition Closes: 4pm on 27 January 2023

1. Introduction

The UK Shared Prosperity Fund (UKSPF) is a central pillar of the UK government’s ambitious Levelling Up agenda and a significant component of its support for places across the UK. It provides £2.6 billion of new funding for local investment by March 2025, with Northern Ireland benefiting from an allocation of almost £127 million to help deliver important outcomes to improve pride in place and increase life chances for Northern Ireland’s people, businesses and communities.

In Northern Ireland, the Department for Levelling Up, Housing and Communities (DLUHC) is managing the Fund. Building on the UKSPF Prospectus, DLUHC and local partners have worked together to design the Northern Ireland Investment Plan. The Plan sets out proposed routes to market, scale and scope of delivery, and timing of interventions we plan to support across the 3 investment priorities of Communities and Place, Supporting Local Business, and People and Skills.

The drafting of the Plan has considered wider funding and strategic policy across Northern Ireland, as well as local authority and City and Growth Deal geographies. These include policies and plans such as the Northern Ireland Programme for Government Draft Outcomes Framework 2021, Community Plans and Skills for an 10x Economy, among others.

This competition seeks project applications to deliver the economic inactivity support identified in the Plan, for the period 2023-25.

Key documents

The following key documents should be reviewed by all applicants prior to submitting a UKSPF project application:

• UK Shared Prosperity Fund: prospectus
• NI Investment Plan
• Interventions list for Northern Ireland
• UK Shared Prosperity Fund: outputs and outcomes definitions
• UK Shared Prosperity Fund (UKSPF): application guidance for Northern Ireland
• UK Shared Prosperity Fund: Northern Ireland competition assessment criteria

An offline application form has been provided for applicants to start preparing their bids, but applications will only be accepted via the online portal, which can be accessed by completing the registration form. Applicants should register their interest in applying using this form. You will then be sent an email with instructions for submitting your application.

2. What are we looking to address?

2.1 Context

DLUHC invites applications seeking UKSPF support under the People and Skills Investment Priority. The key aim of this Investment Priority is:

By 2025, we aim to see people supported through our interventions gaining and sustaining employment and an increase in their skills levels. This will allow more people across Northern Ireland to fulfil their potential and progress in their careers.

This competition is seeking applications to deliver a range of holistic support for people who are economically inactive to take steps to secure employment or self-employment. Supported applications will be expected to address the challenges, needs and opportunities described in section 2.2 below, including where relevant, embedded support for economically inactive people to address adult numeracy.

Applicants may deliver against the following intervention:

NI33 - Employment support for economically inactive people: Intensive and wrap-around one-to-one support to move people closer to mainstream provision and to gain and retain employment, supplemented by additional and/or specialist life and basic skills (digital, English, maths and ESOL) support where there are local provision gaps.

This provision can include projects promoting the importance of work to help people to live healthier and more independent lives, alongside building their future financial resilience and wellbeing.

Expected cohorts particularly include, but are not limited to people aged over 50, people with a disability and health condition, women, people from an ethnic minority, young people not in education, employment or training and people with multiple complex needs (homeless, care leavers, ex-offenders, people with substance abuse problems and victims of domestic violence).

Note - economic inactivity refers to those without a job who have not sought work in the last 4 weeks and/or are not available to start work in the next 2 weeks although in practice many people who are inactive will have been so for a long time.

For UKSPF people and skills investments, the term includes people not in work who are on and off benefits, with the exception of Universal Credit, Jobseekers Allowance or Employment and Support Allowance claimants who are in the all work related requirements legal conditionality groups (i.e. Light Touch and Intensive Work Search).

Where relevant, one or more of the following interventions may also be delivered for economically inactive people as part of a holistic package of support:

• NI43 - Courses designed to increase confidence with numbers for those needing the first steps towards formal qualifications.
• NI44 - Courses for parents wanting to increase their numeracy skills in order to help their children and help with their own progression.
• NI45 - Courses aimed at prisoners, those recently released from prison or on temporary licence.
• NI46 - Courses aimed at people who can’t apply for certain jobs because of lack of numeracy skills and/or to encourage people to upskill in order to access a certain job/career.
• NI50 - Courses designed to help people use numeracy to manage their money.
• NI51 - Courses aimed at those 19 or over that are leaving, or have just left, the care system.
• NI52 - Activities, courses or provision developed in partnership with community organisations and other partners aimed at engaging the hardest to reach learners – for example, those not in the labour market or other groups identified locally as in need.

2.2 Key challenges and needs

Northern Ireland has high levels of economic inactivity, with around 28.3% of the 16-64 age group economically inactive between April - June 2022. This is significantly higher than the levels of UK economic inactivity over the same period which stood at 21.4% .

This high prevalence of economic inactivity is a significant barrier to a well-functioning labour market; it dampens growth, aggravates the shortage of workers in key sectors, and negatively impacts the quality of life of those who are economically inactive.

There is also asymmetric need across Northern Ireland, with some communities and some cohorts affected more than most:

1. In its in-depth topic paper on economic inactivity from 2018, NISRA noted that the economic inactivity rate is characterised by high levels of inactivity among those with a long-term health condition or disability (32%) compared to the UK average. In addition, employment among people with a disability is considerably lower in Northern Ireland than in other parts of the UK. Only 35% of working age people with a disability in Northern Ireland are employed, compared to 42% in Scotland, 47% in Wales and 50% in England (JRF ‘UK Poverty 2018’ report ). In Northern Ireland, 27% of people with a disability are in poverty compared to 19% without a disability.

2. The economic inactivity rate is not uniform, with the highest levels of economic inactivity in Derry City and Strabane (34.1%), Belfast (32.1%) and Newry, Mourne and Down (31.0%).

3. More women are economically inactive in Northern Ireland at 30.7% compared to 24.6% in the UK.

4. While the NEET (not in employment, education, or training) rate for young people in Northern Ireland has been steadily decreasing to below the UK average (7.5% from April to June 2022 compared to 9.8% in the UK as a whole) , action to reduce the level of economic inactivity among young people of working age remains important, as inactivity among young people can result in lasting impacts on life chances. In addition, pockets of higher levels of NEET young people continue to exist – for example in Causeway Coast and Glens council area, the NEET rate has increased in recent years.

In addition, across the UK, adult numeracy is below the OECD average. In the Survey of Adult Skills (PIAAC) additional results published in 2019, Northern Ireland scored 35.89% of adults surveyed with Level 2 proficiency in numeracy or below, lower than the OECD average of 32.97% and below the UK average of 33.31%. PIAAC reports on adult numeracy have demonstrated that success in the labour market and pay levels are tied to levels of literacy and numeracy.

2.3 What kind of applications are we looking for?

In summary, we are looking for applications that meet the following requirements:

Indicative fund allocation

We have indicatively allocated £40 million (revenue), plus up to £2 million (revenue) from the Multiply allocation to this project competition.

DLUHC reserves the right to increase or decrease this indicative allocation depending on need and demand, the volume and quality of applications or other factors.

There are no prescribed sub-allocations for specific cohorts or geographies. We would expect to invest in a range of projects targeting key cohorts, as well as a range of geographies across Northern Ireland. The overall funding mix is provided at the end of this section.

DLUHC reserves the right to vary the final selection of projects to ensure a broad representation of places and cohorts across Northern Ireland.

Minimum application level

UKSPF investment is intended to make a significant impact on pride in place and increasing life chances, with appropriate scale and impact.

We would encourage prospective applicants to consider working with other organisations to develop projects of scale to maximise impact and delivery flexibility. This may include integrated proposals comprised of a number of smaller activities focused on a specific need, sector or place.

Proposed outputs and outcomes, and efficient and effective delivery, will be considered as part of value for money assessment.

As a guide, although not an absolute floor, we anticipate that successful applications will be providing support to around 250 beneficiaries or more, in order to maximise value for money.

Funding duration

Funding is available for financial years 2023/24 and 2024/25

Projects may incur spend from 1 April 2023.

Any expenditure incurred prior to this date will be deemed ineligible.

Any spend incurred prior to a project receiving formal approval will be at your own risk and you as the applicant will be required to accept any financial liabilities should the project subsequently fail to receive full approval.

Project duration

Projects must be complete by 31 March 2025.

Geographic scope

Projects may support people in all or part of Northern Ireland.

2.4 Specific requirements for projects sought via this competition

This section sets out any specific design factors, and programme outputs and outcomes that you should take account of when developing an application:

Design factors

While continuing to support a wide range of provision, including established models of delivery where appropriate, we want to encourage creativity and new ways to support economically inactive people and create lasting impact on their life chances.

We are seeking projects that can demonstrate good potential to secure sustainable, good quality employment outcomes for people, including starting a business. This can also include ongoing support to sustain employment where this is necessary.

We are particularly interested in collaborations between delivery organisations, which can achieve scale efficiencies, enhance value for money outcomes, provide flexibility benefits for deliverers and reduce duplication/complexity for end users. We would also encourage new collaborations with employers/sector bodies. Close alignment with start up support will be required.

Delivery in community settings and with trusted intermediaries will be critical to accessing and supporting economically inactive people. This will require close working with the dedicated community and voluntary sector, which has delivered significant activity in this field.

Projects which address, among others, the following groups are likely to be required:

• people aged over 50,
• people with a disability and health condition,
• women,
• people from an ethnic minority,
• young people not in education, employment or training and
• people with multiple complex needs (homeless, care leavers, ex/offenders, people with substance abuse problems and victims of domestic violence).

We expect there to be a range of holistic approaches to addressing the barriers that people face in becoming economically active, with approaches tailored to the skill level, barriers and economic potential of individuals supported. Delivery models should reflect the needs of the cohort or cohorts supported. A mixed model of face-to-face and online provision will be appropriate in many circumstances and may be preferred by some service users, for access or other reasons.

Alongside this, we also see a clear opportunity to deliver adult numeracy support for these cohorts, in community settings and as an integral part of the economic inactivity offer. This recognises that while colleges are a key delivery route, community-based numeracy interventions widen the reach, connecting with the hardest to reach learners.

Strategic alignment with specific Northern Ireland policies, strategies and complementary funding

The Northern Ireland Executive, through the Department for Communities and other bodies, plays the leading role in supporting people to secure employment notably through the provision of job coaching and wider support for unemployed people.

Applicants should set out how they will maximise alignment and complementarity with the Department for Communities’ funded programmes, as well as other funded activity available for people in Northern Ireland. This includes activity funded by the UK government, including through the New Deal for Northern Ireland, as well as Peace Plus and the National Lottery Community Fund.

Applicants should also take account of the range of opportunities in growth sectors, including those described in a 10X Economy – Northern Ireland’s Decade of Innovation, when developing projects, to maximise the sustainability and long-term impact of project activity on supported individuals.

Applicants should also take account of the evidence of need and opportunity that Labour Market Partnerships and others can provide to maximise alignment with local need and opportunity across the council areas that the proposed projects will operate in, based on evidence from the Northern Ireland Statistics and Research Agency (NISRA) covering the most up to date labour market statistics from a range of household and business surveys, and administrative sources.

Where projects are seeking to support people to explore self-employment as an outcome, applicants should set out how they will align with and engage with entrepreneurship support provision available in the places they intend to operate, including activities that may be funded by UKSPF, as well as other funding sources.

Applicants should be aware that DLUHC will engage with other public funders, or other bodies as appropriate, in the assessment of your application, to assess strategic alignment, including the extent to which your proposed project is complementary to.

Outputs and outcomes

Applicants should review the list of outputs and outcomes relevant to each intervention, and their definitions before applying for UKSPF. Please refer to the Interventions, objectives, outputs and outcomes for Northern Ireland (PDF, 404KB) and the UKSPF outputs and outcomes definitions.

Applicants should set out how they will contribute to the following key outputs and outcomes listed below:

Outputs

• Number of economically inactive people engaging with support services
• Number of people participating in Multiply funded courses

Outcomes

• Number of people in employment, including self-employment, following support
• Number of people sustaining employment for 6 months
• Number of adults achieving maths qualifications up to, and including, Level 2 equivalent

This is in no way an exhaustive list and applicants should review the full list of outputs and outcomes relevant to the interventions to be delivered. Applicants should identify and quantify all appropriate outputs and outcomes relevant to their project in their application.

Applicants will need to demonstrate how their project will achieve the outputs and outcomes committed to within the application. The application should clearly state the methodology used to determine the levels of outputs and outcomes proposed.

Applicants should note that performance against proposed outputs and outcomes will be monitored as set out below.

3. General information for applicants

Alongside the specific requirements for this competition, all applicants must fully consider the following UKSPF requirements ahead of submitting a project for UKSPF funding:

3.1 Eligibility

Applicants must ensure they have read section 7 of the UKSPF prospectus which details the funds parameters and any eligibility criteria.

3.2 Cross cutting themes and technical considerations

All applications will need to set out how they will consider the following requirements in both design and implementation of projects:

3.2.1 Equalities

DLUHC is not a designated body for the purposes of section 75 of the Northern Ireland Act 1998, but we recognise the importance of not only meeting our legal obligations under the Equality Act 2010 but also giving due regard to the additional equalities considerations that apply in Northern Ireland. In designing the fund, DLUHC has considered its public sector equality duties under the Equality Act 2010, as well as relevant Section 75 protected groups specific to Northern Ireland.

All Applicants should describe how their project will impact on people with protected characteristics, including any measures you plan to positively impact on or promote good relations between groups set out in section 75 of the Northern Ireland Act 1998 and the Equality Act 2010.

Public sector applicants should describe how the project will take account of equalities legislation, including section 75 of the Northern Ireland Act 1998 and the Equality Act 2010.

Note - all project deliverers will also be asked, as a condition of award of funding, to collect information on beneficiaries with respect to the 9 categories set out in section 75 of the Northern Ireland Act to assist DLUHC in monitoring the equalities impact of UKSPF as a whole.

3.2.2 Rural access / take up

Where relevant, applicants should demonstrate how they have considered the additional barriers that those living in rural areas face compared with their urban counterparts, and how individuals in rural areas will be able to access support. Barriers to consider include:

• Availability of services in rural areas.
• Availability of public transport in rural areas.
• Availability of formal childcare.
• Broadband coverage and availability in rural areas.

3.2.3 Net zero

All proposed activities should be based on low or zero carbon best practice and support the growing skills and supply chains in support of Net Zero where possible. As a minimum, investment under this fund should meet the clean growth principle and must not conflict with the UK’s legal commitment to cut greenhouse gas emissions to net zero by 2050. You will be asked to confirm that you will meet this requirement.

3.2.4 Non-duplication of activity

Applicants must be able to demonstrate that the activity is either new or adds value to existing activity.

UKSPF cannot support activities that would wholly duplicate or adversely affect demand from existing provision/services within Northern Ireland.

Applications also need to identify and evidence how people or businesses will use any service provided and demonstrate that the project does not displace other activity available in the marketplace.

3.2.5 Other policies or plans to take into account

In addition to those outlined in section 2.4, when designing projects applicants should consider any other policies, funding or strategies set out in the relevant investment priority of the investment plan, and section 2.6 of the UKSPF prospectus.

Applications should set out how they will align with these existing policies.

3.2.6 Match funding

Match funding is not mandatory. However, applicants are encouraged to consider match funding from the private, public and third sectors wherever possible. This will maximise the value for money and impact of the Fund.

Where match funding is required for viability of the project, applicants will need to evidence that such match funding has been or is in the process of being secured or if it will come from beneficiaries that there is sufficient demand to generate the required funding.

3.2.7 Subsidy Control and State Aid

All funding must take account of both Subsidy Control obligations and State Aid law.

If the proposed project is likely to result in a subsidy or state aid, applicants must consider how their project can be delivered in accordance with the UK’s subsidy control obligations (or state aid law where relevant). Applicants (and any joint bidders) must consider any subsidy or State Aid accruing to themselves as well. All applicants should review the published guidance before submitting an application.

Applicants will need to ensure they have an adequate system in place to record subsidy or State aid awarded and report to DLUHC as required.

3.2.8 Procurement

Applicants should refer to both the additional information on procurement , and overarching public procurement requirements within section 7.6.2 of the Prospectus.

Applicants will be asked to confirm that any procurements undertaken comply with this. A list of procurements, both planned and any already undertaken will be required with the application.

3.2.9 Branding and publicity

Applicants should review the UKSPF branding and publicity guidance prior to submitting applications. They will be required to confirm that they will adhere to this guidance as part of the delivery of any UKSPF project.

3.2.10 Reporting and evaluation

Applicants should be aware that we will require quarterly narrative reporting, and 6-monthly quantitative reporting of project expenditure and outputs and outcomes. See information on the reporting requirements for UKSPF funded projects.

Individual project-level evaluations may be appropriate but are not mandatory. DLUHC expects to commission a place level evaluation, and evaluations of a number of interventions across the United Kingdom. Where projects are providing support to beneficiaries, they will be required to collect personal data of beneficiaries supported. This information will be used for monitoring and evaluation of the programme, including equalities impacts, in accordance with a data sharing policy, which will be published on gov.uk before completion of the project selection process.

3.2.11 Assurance and risk

Applicants will need to describe systems in place to manage assurance and risk at an organisational level. A short risk register must also be submitted alongside each application.

Applicants should refer to the additional information relating to managing assurance and risk in UKSPF projects as a guide. Further information on the specific requirements for Northern Ireland will be published in due course.

3.3 Joint bids

We encourage prospective applicants to consider working with other organisations to develop bigger projects to maximise impact and delivery flexibility. This may include integrated proposals comprised of a number of smaller projects focused on a specific need or sector. Partner organisations may provide match funding.

Where a joint bid is submitted, one organisation will be required to act as a lead applicant. We expect the partnership and all joint bidders to be pre-determined, so that we can assess the model and delivery capacity of the full consortium. Each partner organisation will be required to submit a form declaring their support for the project. A copy of each completed form will need to be submitted alongside the application.

The lead applicant will enter into a funding agreement with DLUHC and is responsible and liable for the project including the activities of and costs incurred by partner organisations.

4. How to apply for funding

4.1 Application process

Applications will be submitted via Citizen Space. This online portal is now open for applications.

An offline version of the application form is available for reference on gov.uk.

In addition to the application form, the following documents are required:

• A fully completed supplementary information form (annex A – E)
• A customer journey flowchart
• A copy of latest accounts, including management accounts for the current year (Private and Voluntary Sector applicants Only)
• Evidence of secured match funding (where this forms part of the funding package)
• Support form for each partner organisation (relevant for joint bids)

These documents must be submitted by email to UKSPFNIApplications@levellingup.gov.uk.

4.2 Application queries

During the application period, applicants may submit technical queries by emailing UKSPFNIApplications@levellingup.gov.uk.These queries will be updated in a FAQ document published on gov.uk.

Applicants should consult the FAQ document prior to submitting any technical queries.

4.3 How will applications be assessed?

The assessment process will consist of reviews of the strategic fit (including contribution to UKSPF and NI Investment Plan objectives), deliverability and value for money.

Please note - as part of the assessment process, we will be unable to ask for further information or clarity on information provided in applications. It is the responsibility of applicants to ensure that applications and supporting documentation are accurate and clear and all relevant information to enable assessment by DLUHC. Applicants will not have an opportunity to provide additional information after the application window has closed.

Assessment will be led by DLUHC officials with advice from appropriate stakeholders. Final selection decisions will be undertaken by DLUHC ministers and may include consideration of thematic/cohort spread and geographic distribution of the projects.

On conclusion of project assessment, DLUHC will inform successful and unsuccessful applicants of the outcome. Successful applicants will receive a funding agreement, which will be a standard, non-negotiable document. This will be published on gov.uk before completion of the project selection process.