Appendix
The Government welcomes the Select Committee's report
on the European Social Fund (ESF). It is pleased that the Committee
endorses the Government's approach of using ESF to add value to
its employment and training programmes. ESF in the UK is part
of a system of active labour market policies that, together with
steady economic growth, has contributed to helping 1.5 million
more people into work since 1997. In particular, ESF is helping
people at a disadvantage in the labour market to improve their
employability and skills.
The Government has devolved responsibility for the
implementation of ESF in Scotland and Wales to the Scottish Executive
and Welsh Assembly Government. In England, it has delegated much
of the administration of ESF to regional Government Offices. This
decentralisation has allowed decision making on priorities and
funding to reflect national and regional needs, within the framework
of the Government's employment strategy for the UK. The Department
for Work and Pensions (DWP) retains responsibility for overall
UK policy on ESF, in co-operation with the devolved administrations,
and is the managing authority for the England Objective 3 and
Great Britain EQUAL programmes.
The Committee's recommendations are mainly concerned
with DWP's management of the England Objective 3 programme, although
some of the evidence and analysis in the report refers to arrangements
in Scotland and Wales, and to regional Objective 1 and 2 programmes
in England. The Scottish Executive has contributed to the responses
to recommendations 9, 10, 11 and 15, which draw on evidence from
Scotland.
ESF systems in the UK are designed to help organisations
apply for and manage ESF funds as easily as possible, while complying
with EU regulations and protecting public money. The Government
welcomes the Committee's support for the steps it has taken to
improve the accessibility of funds, including through the new
system of ESF Co-financing, which has been gradually introduced
in England since the end of 2001.
Co-financing is intended to ensure that funds are
strategically targeted. It enables the Learning and Skills Council
(LSC), Jobcentre Plus and other Co-financing Organisations (CFOs)
to bring together ESF and domestic funds. CFOs award funding to
providers in a single stream, so that providers no longer have
to apply and account for ESF and domestic funds separately. The
findings of the second evaluation of Co-financing show that it
is helping substantial numbers of new voluntary, community and
other small organisations to access ESF[1].
Co-financing is the system through which the large majority of
ESF funds will be distributed in England for the remainder of
the current programme period, until the end of 2006. The Government
will continue to monitor and evaluate the implementation of Co-financing,
to ensure that it achieves its objectives.
In addition to ESF administration, the other main
issue raised in the Committee's report is the future of the Structural
Funds after 2006. The Government's consultation paper 'A Modern
Regional Policy for the United Kingdom' (March 2003) , and the
Secretary of State for Trade and Industry's statements to Parliament
on 17 September and 11 December 2003, set out the Government's
approach to the reform of the Structural Funds. The Government
believes that its reform objectives, together with its guarantee
of increased domestic spending so that UK nations and regions
do not lose from its proposals, represent a sustainable response
to the challenge of European Union enlargement. While it is not
possible to say what arrangements will exist after 2006, the 11
December statement indicates that employment and skills activities,
such as those supported by ESF, would be an important part of
future arrangements, especially assistance to help people at a
disadvantage in the labour market.
1 The interim findings of this evaluation, which was
undertaken by Fraser Associates, were submitted to the Select
Committee in October 2003. The final report will be published
by DWP in early 2004. The first evaluation of Co-financing was
published in July 2002.
Back
|
