The House of Commons Work and Pensions Committee has published a report following its The future of the European Social Fund inquiry.
The report recommends that the Government proceed urgently with detailed design of a successor to the European Social Fund so that there is no gap between existing and new funding streams. This should include:
a) establishing a new arm’s length body, or creating an arrangement with an existing one, to hold the fund’s budget, dovetailing existing funding streams so programmes can meet effectively all of their participants’ needs;
b) retaining a separate fund within the UKSPF for employment support. The separate fund should focus on innovative projects that offer work opportunities and skills development to disadvantaged groups (for example, disabled people) in areas of clear economic and social need.
c) ensuring flexibility of local funding mechanisms for both longer-term (with funding cycles of at least seven years, as in the current fund) and short-term programmes; and
d) reducing overall bureaucracy for providers enabling them to focus on what really matters: value for money, building understanding of “what works” in employment support, and fostering new entrants.