House of Commons - Work and Pensions

Select Committee on Work and Pensions Sixth Report

3 European Social Fund

20. The ESF aims to tackle barriers to labour market participation. Its focus is on funding activities that prevent and combat unemployment, promote training and integrate into the labour market those at risk of social exclusion. The ESF does not fund capital expenditure projects. The second Article of the specific Regulation (Reg 1784/99) governing the ESF states that the ESF is to support the European Employment Strategy (EES) by giving "community added value to the actions".[23] Its explicit priorities or policy fields are to support: active labour market policies, equal opportunities for all and social inclusion, lifelong learning, adaptability and entrepreneurship, and the participation of women in the labour market. Below we outline the focus of each policy field with examples of relevant national polices. [24] The financial allocation for GB Objective 3 is given in table 1.

Policy Field 1: Active labour market policies

21. Active labour market policies are measures that combat and prevent unemployment, especially long-term unemployment. They include the reintegration of the long-term unemployed and young people returning to the labour market after a period of absence. According to the Government, the examples of relevant national polices that relate to this priority include adding value to New Deals and Employment Zones.[25]

Policy Field 2: Equal opportunities for all and promoting social inclusion

22. The promotion of equal opportunities for all in accessing the labour market, with particular emphasis on those exposed to social exclusion is a major priority for ESF.. According to the Government, the examples of relevant national polices include New Deals for Lone Parents, Disabled People and Communities, Sure Start and National Childcare Strategy.[26]

Policy Field 3: Lifelong learning

23. As regards lifelong learning, the ESF promotes training, education and counselling and facilitates job mobility and access to the labour market.. According to the Government, the examples of relevant national polices covering this priority include development of the University for Industry and innovative employee development schemes.[27]

Policy Field 4: Adaptability and entrepreneurship

24. The ESF supports the development of a trained and adaptable workforce, innovation and adaptability in the work place, entrepreneurship, job creation, and human potential in research, science and technology. This policy field also includes the promotion of new employment opportunities to meet the challenges of international competitiveness and globalisation. According to the Government, the examples of relevant national polices relating to this priority include New Deals, Youth Enterprise Initiative, Skills Task Force and National Targets.[28]

Policy Field 5: Improving the participation of women in the labour market

25. The ESF supports specific measures to improve women's access to and participation in the labour market, including their career development and their access to new job opportunities and to starting up businesses. According to the Government, the examples of national polices that promote the employability of women and men who have been excluded from the labour market include New Deals for Lone Parents and Partners, National Childcare Strategy and Family Friendly policies.[29]Table 1: The Financial allocation for Objective 3 made in each country of the UK under each of the priorities

Priority England Scotland Wales GB

1.Active labour market policies £642 m £72m £21m £735m

2.Equal opportunities for all and promoting social inclusion £634 m £110m £17m £761m

3.Lifelong learning £716m £30m £18m £764m

4.Adaptability and entrepreneurship £325m £68m £19m £412m

5. Improving the participation of women in the labour market £179m £21m £6m £206m