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1 Introduction to ESF 2014 - 2020 Ben Neild Assistant Director, SLIM

2 ESF Origins Source: NOMIS The European Social Fund was created in 1957 by the Treaty of Rome (at the same time of the European Commission) Context was recovery from WWII and the contribution of high unemployment to the start of WWII. Original aims were to support high levels of employment, geographical and occupational mobility, esp in event of structural change. The focus has shifted over the years: Increasing focus on combatting unemployment - among the young, poorly qualified, long-term unemployed and those disadvantaged in the labour market Increasing the adaptability of workers, e.g. to technological and structural change

3 Proposals for 2014 - 2020 The new programme will combine the two structural funds, the European Regional Development Fund (ERDF) and the European Social Fund (ESF). However…. The Commission is proposing, at national level, there should be a minimum allocation to ESF: 20% in less developed regions (Cornwall); 40% in transition regions; and 52% in more developed regions. ‘For the purposes of this guidance, LEPs should focus on identifying the activities and investment priorities they wish to support’. Interim Guidance However, it is entirely likely that half of the allocation to most areas will be ESF, and therefore focused on soft measures / the development of human capital.

4 What can it be used for? Source: NOMIS Soft interventions across all the EU Thematic Objectives / Key national priorities EU Thematic Objectives Innovation ICT SME Competitiveness Low Carbon Climate change adaptation Environmental protection Sustainable Transport Employment Skills Social Inclusion Institutional Capacity UK Priorities Innovation, research and technological development Support for small businesses The low carbon economy Skills Employment Social Inclusion

5 Traditional focus… Source: NOMIS People who are disadvantaged in the labour market: Lone parents, ex-offenders, young unemployed, homeless, migrants… There was no ‘Objective 4’ providing support for people in work, until 1998 and ‘Adapt’. In current programme, delivered via Co-financing: SFA – Train to Gain, Apprenticeships (inc employer support), E2E, Career development, response to redundancy DWP – Work Programme, Families with multiple problems NOMS – Job Deal for offenders

6 Emerging focus… “Stakeholders offered a number of more specific suggestions for how ESF might be used in line with emerging thinking on revising the programme’s focus: Facilitating locally based, dedicated one-to-one support via specialised business growth advisors. Ensuring that employment opportunities arising from EZs can be met through the skills of the local workforce. Supporting graduate placements in SMEs Re-skilling for the renewable technologies sector Delivering entrepreneurship education in schools and colleges aimed at inspiring future entrepreneurs. Subsidising post-graduate opportunities in specialised potential growth sectors Providing specialised advice to support businesses to grow via export markets” Effectiveness of ESF Delivery, BIS, April 2013, page 35

7 However… The Commission is proposing that: 80% of ESF in ‘more developed regions’ (70% in transition regions) be allocated to Employment, Skills and Social Inclusion 20% be allocated to Social Inclusion Leaving 20% for the other thematic priorities - SME competitiveness, Innovation, ICT etc. This is still under negotiation However, it is sensible to work on the basis employment, skills and inclusion should be important elements of integrated strategies for local economic development.

8 Evidence based strategy Business births, deaths and stock – Heart of the South West

9 Evidence based strategy

10 More evidence… Nationally, the unemployment rate among 20 to 24 year olds is 17.2 %, compared to 8% among 16 to 64 year olds. The proportion of graduates working in elementary occupations rose by 77% between 2007 to 2012. ‘Evidence shows that having one single professional working with a family costs on average £14,000 per family compared to costs to local services of up to £330,000 per family per year’ (Press release, Gov.UK, March 2013) Fewer than 50% of people with a disability are employed. In November 2012, there were more vacancies that JSA claimants in Exeter. Yet there are neighbourhoods in Exeter where the unemployment rate is well above the national average. Etc

11 Integrated Strategies The challenge is to develop an ‘integrated’ and ‘place based’ strategy. There is a fair degree of consensus that: a)Growth strategies need to be based on an analysis of the economic development opportunities that exist in a place; b)The balance of activities / funding should flow from this; c)It makes sense to link economic development, business support and infrastructure investment (via ERDF) to employment and skills support (ESF); d)And to create opportunities for local people to benefit from local employment growth.

12 Thank you Ben Neild 01392 264823

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