ESVFON - ESF Objective 3 - Your Questions Answered

ESFVON

European Structural Funds Voluntary Organisations Northern

WHAT IS ESFVON?

ESFVON (The initials stand for European Structural Funds Voluntary Organisations Northern) was established in 1991 - initially to provide a regional resource for voluntary and community organisations seeking to access Objective 3 of the European Social Fund. It subsequently developed its services to include Objective 2* funding, incorporating both the European Social Fund and the European Regional Development fund. Serving the North East region, ESFVON has links with 1000 voluntary and community organisations. It is a regional charity, supported by the European Structural Funds.

ESFVON supports the sector through a variety of services, including:

A telephone helpline
Information Bulletin service
Training seminars
Project development
Training seminars
Support visits
Opportunities to network

Our address is:

ESFVON
391 West Road
Newcastle upon Tyne
NE15 7PY

Tel. 0191 2749886

Fax 0191 2742285

e-mail info@esfvon.org.uk

Our website is updated regularly and can be viewed on www.esfvon.org.uk

* A separate ESFVON information leaflet on Objective 2 is available.

What is the European Social Fund (ESF)?

The European Social Fund was created by the European Union for the specific purpose of helping member states finance initiatives to meet training and employment needs. Voluntary sector projects receive significant support.

What is Objective 3?

ESF Objective 3 aims to give support towards the running costs of schemes providing a range of measures to help jobless people into work by upgrading their skills and employment potential. It also supports retraining/upskilling of employees and the promotion of life long learning. There are five Policy Fields and associated Measures which indicate the broad range of project actions eligible for support. Objective 3 has recently undergone a major change in how it is delivered.

What are the ESF Policy Fields and Measures?

Project actions will relate to the Policy Fields and Measures of the ESF. These are detailed in the key strategic document describing the framework for the use of ESF Objective 3 funding in the region: the Regional Development Plan for the North-East (RDP). The Policy Fields are:

PF1 - active labour market actions
PF2 - equal opportunities and social inclusion
PF3 - lifelong learning
PF4 - adaptability and entrepreneurship
PF5 - improving the participation of women in the labour market/li>

Each Policy Field is further subdivided into either two or three Measures. These specify in more detail the scope of eligible activity.

Who can apply for Objective 3 funding?

Any legally constituted organisation (not individuals) can apply.

What kind of project actions can be funded?

Many kinds of projects and actions may be supported by the ESF in terms of the above Policy Fields and Measures. The following illustrate types of action for each Measure:

PF1/Measure1

Improving advice and guidance through new and innovative approaches
Supporting actions to improve the UK's comprehensive benefits system
Early interventions to support the unemployed, including advice and guidance and utilising IT

PF1/Measure 2

Support through provision of vocational, social and key skills
Intermediate labour market projects to help the unemployed progress to the open labour market
Vocational training, matched to individual and labour market needs

PF2/Measure 1

Actions to improve the basic skills of excluded groups (such as the disabled, ethnic minorities, ex-offenders, lone parents, etc.)
Pre-vocational or vocational guidance to support excluded groups
Personal development support addressing attitudes, confidence, motivation and responsibility

PF2/Measure 2

Vocational training for excluded groups matched to labour market needs
Development of employability skills, including inter-personal, communication and ICT training
Support for vocational guidance and personal development counselling; including mentoring and counselling projects for young people
Capacity-building support for organisations to provide services for excluded groups

PF2/Measure 3

Researching into institutional discrimination
Actions to combat discrimination
Supporting initiatives which eliminate institutional discrimination in recruitment and promotion

PF3/Measure 1

Identifying and promoting ways which can open up access to learning for those adults least likely to be part of the education system
Provision of key skills courses covering people skills, communication skills and team working skills
Provision of leisure, basic skills courses to encourage entry to learning amongst disengaged groups, including disaffected young people

PF3/Measure 2

Support for projects providing career management guidance to people in employment
Development of flexible courses targeting employed people e.g. interactive training media, short courses, distance learning
Encouragement for employer support for learning through the workplace

PF4 the Measures in this policy field primarily target employers/companies PF5/Measure 1

Information, advice and guidance services tailored to the needs of women
Increasing flexibility of training delivery to respond to barriers such as child/dependent care, travel, timing
Provision of key skills training, including ICT training, for returners

PF5/Measure 2

Research and development of practical responses to gender discrimination in recruitment, occupation, and other aspects of employment
Development of child/dependent care strategies
Dissemination of good practice in relation to gender equality in recruitment, training and promotion systems and family friendly working

How has Objective 3 changed?

The adoption of Co-financing (CF) in Objective 3 replaces the old system of direct bidding by organisations to Government Office for the North East (GONE) for ESF funding. Under CF organisations bid to Co-financing organisations (CFOs) and successful applicants have a contractual arrangement only with the CFO, not GONE.

What is Co-Financing?

Co-Financing is a system whereby a large domestic funder is appointed as a CFO to act, effectively, as a 'middleman' in the allocation and determination Objective 3 funding. There are five CFOs which discharge these responsibilities in the North-East: these are, Job Centre Plus (JCP) and the four sub-regional Learning and Skills Councils (LSCs).

The CFO applies to GONE for significant aggregates of ESF money allocated to the respective Policy Fields and Measures. They then 'sub-contract' with a number of organisations in various sectors (voluntary, local authority, colleges, etc) to deliver actual outputs (see 'outputs' question below). This process takes place by means of a system of tendering: that is, the CFO invites tenders to meet published project specifications that they have determined.

How does 'tendering' under Co-Financing differ from the old system?

Under direct bidding an organisation bidding for ESF submitted an application to GONE meeting the generic (that is to say, wide ranging) criteria of a Policy Field and Measure indicated in the RDP (see above). Projects were approved on the basis of a process of scoring and appraisal.

In tendering the RDP Policy Fields and Measures are 'translated' by the CFO into actual project criteria. They take account of their own strategic priorities in doing this. So, for example, the generic definition of PF/M 1.1: 'Providing advice, guidance and support to help people to develop active and ongoing jobsearch plans preventing them from moving into long-term unemployment' might be specified by a CFO as a prospective project as follows: 'A peripatetic job and skills guidance service for customers who have recently claimed either Incapacity or Income support, Invalidity Care, or Severe Disability Allowance ..' The number of specifications for each Measure may very between CFOs.

What determines whether a project is eligible for Co-Financing?

A project proposal has to be in line with a CFO's tender specification for it to be eligible of Co-financing (assuming the applicant is a properly constituted organisation of course).

Can organisations still bid directly to GONE for ESF funding?

The opportunity to bid directly to GONE for ESF funding will only be an option if a CFO does not have a remit for the Policy Field/Measure to which your project relates. It is possible that Co-Financing will not apply to all Measures in particular sub regions. In that event, GONE will publish Guidance for those who may wish to bid directly. It is not anticipated, however, that there will be many opportunities to bid directly for ESF support. ESFVON is available to advise you if you have any queries: see contact details below.

How can an organisation find out about Co-Financing opportunities, and how do they apply for funding?

Invitations to bid into CF occur periodically via the publication by a CFO of a bidding prospectus, which can be downloaded from the relevant Website (see below). Potential applicants should, though, have registered their intention with the relevant CFO, in any event, in order that further details and procedures are sent to them automatically. Again, if you are on the ESFVON contact list, we will notify you through our system of Information Bulletins and electronic mailing. We will endeavour to do this as early as possible in the process. The following gives the contact details for all of the regional CFOs and GONE.

LSC COUNTY DURHAM	LSC NORTHUMBERLAND
Horndale Avenue Aycliffe Industrial Park Newton Aycliffe Co Durham DL5 6XS Tel 0845 0194174 http://www.lsc.gov.uk	2 Craster Court Manor Walks Cramlington Northumberland NE23 6XX Tel 0845 0194185 http://www.lsc.gov.uk
LSC TEES VALLEY	LSC TYNE & WEAR
53 Queens Square Middlesbrough TS2 1AA Tel 0845 0194166 http://www.lsc.gov.uk	Moongate House 5th Avenue Business Park Team Valley Trading Estate Gateshead Tyne & Wear Tel 0845 0194181 http://www.lsc.gov.uk
JOBCENTRE PLUS	GOVERNMENT OFFICE NORTH EAST
North East Regional Office Broadacre House Market Street (East) Newcastle upon Tyne NE1 6HQ Tel 0191 2114359 http://www.jobcentreplus.gov.uk	Dave Mitchinson Wellbar House Gallowgate Newcastle upon Tyne NE1 4TD Tel 0191 2023542 http://www.go-regions.gsi.gov.uk

Reminder: contact your local LSC or Job Centre directly and asked to be put on their mailing list to receive future Co Financing information - especially any future bidding Prospectus and Application Form. The Prospectus will indicate the relevant tender specifications, wanted outcomes, etc.; the Application Form includes completion guidance.

Are expected project outputs and cost norms included in the project specifications?

The output requirements for each Policy Field and Measure overall are indicated in the CF Bidding Prospectus of each Co-financing Organisation. These might include the following: number of beneficiaries; number of women beneficiaries; number of young people aged 18-24; number of beneficiaries achieving a positive outcome on leaving; number of beneficiaries in work on leaving; number of beneficiaries moving into further training. These outputs are achieved by the totality of the projects bidding. Clearly, each project will be expected to 'contribute' outputs at a viable or comparable cost. Approximate cost norms can also be deduced by dividing the total Measure resource by the number of targeted beneficiaries for that Measure. These cost norms though are only a rough guide however since some projects will, from necessity, be more expensive than others, depending of economies of scale, special target group costs, etc. Costs above the average, however, can only operate to the extent that there are also lower cost projects to balance the situation overall.

What are the key implications of co-financing for the voluntary sector?

A major plus is that under CF applicants do not have to provide match funding - that's to say they can apply for 100% of project costs rather than the 45% maximum under direct bidding.

The more 'strategic' role and approach of CFOs inevitably means that some projects, especially where there is duplication, will not be funded where they might have been under the previous system.

Another consequence has been the increasing emphasis given by some CFOs on prioritising consortia or partnership bids

When will there be future funding rounds?

A major allocation for the current Programme (2003-2006) was made in the October round 2003. There will be future rounds, but when the tenders will be published, for how much, and the content of the specifications themselves, remains to be decided.

How will we find out if what we want to do might be eligible?

Contact us at ESFVON. We are a regional charity established to support organisations in accessing the ESF. We will be pleased to arrange an appointment to discuss your ideas in detail and whether or not they are eligible for ESF funding.