1. Gemma Marsh Head of Skills and Employment Policy
European Social Fund:

2. Aim of the session Greater Manchester landscape
Raise awareness of European Structural Investment Fund
Outline European Social Fund priorities
Big Lottery Opt In
Where can the Sector enhance/deliver/develop activity?

3. Europe & International Growth and Prosperity for
New Economy
People & Communities
Place
Research
Policy
Strategy
Europe & International
Innovation & Business
Public Service Reform
Growth and Prosperity for
Greater Manchester
What we do for GM:
Research & Analysis
Policy & Strategy
Economic Think Tank

4. The Greater Manchester Economy
2.7m people
1.14m jobs
93,000 businesses
Source: ONS
Gross Value Added
Source: ONS, GVA estimates 2012
BIGGER THAN
WALES ECONOMY, 2011
£47.3bn
NORTHERN IRELAND ECONOMY, 2011
£29.9bn
NORTH EAST ECONOMY, 2011
£41.6bn
GM ECONOMY, 2011
£48.2bn

5. Collaboration History
From
1986
2008
2009
2010
2011
2012
Business
Leadership
Council
Established
Publication
of the MIER
Prosperity
for
All: The
Greater
Manchester
Strategy
GM LEP
Formation of
AGMA
City Deal
GMS
refresh
Community
Budget Pilot
The GMCA
Established April 2011
A statutory foundation for further collaboration between the 10 districts e – a local solution to deal with challenges. Legally the GMCA is a local authority – but it is not a county council
Primary responsibilities
to co-ordinate economic development, regeneration and transport policies for GM
the “well-being power” - the duty ‘to promote or improve the economic, social and environmental well-being of its area’
environmental responsibilities air quality
The GM LEP
Local Enterprise Partnerships offer GM new platform for business engagement. They are intended to facilitate:
‘a new radical way of delivering prosperity and rebalancing the economy.’
LEP and GMCA highly complementary
LEP enables private sector engagement in localism and prioritisation – but this is not new there is a long history of private sector involvement in GM
MIER
Greater Manchester Strategy
Transport post TIF
Strategic sites review
Enterprise Zone: Airport City

6. Skills and Employment in GM
GM is the largest city based economy outside SE England – GVA of £48 billion
Local Enterprise Partnership leads the drive for growth
Skills and Employment Partnership:
Enabling discharge of statutory duties
Maximising the impact of skills and employment policy and delivery on growth
Membership: employers, colleges, providers, local authorities, funding agencies, JCP, unions

7. Labour Market Issues For young people:
High unemployment (21%) and NEETs
Poor employer perceptions of young peoples’ job readiness in UK
Falling apprentices but vacancies persist
For adults in work:
Two fifths of employers struggle to recruit to associate professional roles
One in seven employers report that staff are not proficient in their role
230,000 GM working households claim tax credit
For adults out of work:
Sustained high levels of worklessness for past two decades
Low attainment: 38% of unemployed and 42% of economically inactive adults do not have a level 2 qualification
Growing issues around low pay, no pay and quality of available work

8. Greater Manchester Strategy
“By 2020, GM will have pioneered a new model for sustainable economic growth…where all residents are able to contribute to and benefit from sustained prosperity”
Preventing and reducing youth unemployment
Employer-led skills system
An integrated skills and employment offer
GM Growth and Reform Plan – programmes that respond to GMS priorities
Skills and Employment Partnership – responsible to developing and delivering S&E programmes

9. The role of LEPs
Autumn Statement 2012: The Government agreed that LEPs would have a new strategic influence over skills policy. LEPs will be responsible for setting local skills strategies and will work with the FE providers to agree how those priorities will be delivered.
From the Partnership’s Terms of Reference: The LEP and Providers have a clear shared interest. For the LEP supporting the most efficient and effective skills and employment system will help to maximise growth.
Significant rise in devolution of influence and resource to LEPs – greater control over our destiny. (E.g. ESF , £178m + match). LEP role is not marginal.

10. Background New EU programme 2014 -2020
GM LEP allocation (not regional or national)
Alignment with
GM Growth and Reform plan, implementing GMS
Other funding, especially ERDF
January 2014
Submission of EU Structural and Investment Fund Strategy (ESIF)
February-September 2014
Agree opt ins
Agree none opt in match funding
Engage with partners
Design, develop calls for tender

11. The Greater Manchester ESIF
GMS defines activities, ESIF implements
Part of wider growth and reform plan
Match via SFA, DWP, Big Lottery, local & private
Responding to three EU thematic objectives:
Employment & supporting labour mobility
Education, skills & lifelong learning
Social inclusion & combating poverty
Funding allocation
In July 2013, BIS allocated the GM LEP €415m for the Programme
This is approximately £356m which is split as follows
- £195m ERDF (55%) / £161m ESF (45%)
Minimum 20% dedicated to social inclusion
Challenges/Issues
Eligibility – ESF won’t fund everything
Additionality – delivering the best, most impactful programme for GM
Links to GM Growth & Reform Plan – GMS strategic alignment
Match Funding – need this to access ESF resource

12. ESF The ESF will deliver the Growth Programme’s objectives to
promote employment, social inclusion and skills.
The main investment priorities will be:
helping more unemployed and inactive people to enter and progress in employment;
increasing the number of young people who are in education, employment or training;
tackling barriers to work faced by the most disadvantaged groups;
helping more people improve their skills;
making skills provision more responsive to the needs of the local economy.

13. ESF continued
The ESF programme is split into two sections: The first theme entitled Skills; Employment & Social Inclusion consists of £137m of grant support. This incorporates a wide spectrum of activities ranging from those furthest from the Labour Market (linked to the Supporting Reform agenda) to the highest level skills (linked primarily to the Science and innovation agenda). There are also clear linkages with other ESIF themes particularly Science, Innovation and Knowledge Economy, Competitive Business and Low Carbon where the provision of appropriate skills will be essential to success. The Supporting Reform theme consists of £24m of GM ESF support, matched against local and national public funds. The activities will complement the above theme for those who are furthest away from the labour market by offering additional targeted support for certain cohorts. This is closely aligned with the Public Sector Reform agenda in GM.

14. GM LEP ESIF 2014-20 Programme - ERDF
FUNDING
Evergreen - £13m
Evergreen– Grant - £9m
TOTAL - £22m
Sites and premises
Town Centres
Critical infrastructure
COMPETITVE PLACES - ACTIVITIES
OUTPUTS
4.4ha land developed
£13m private match
380 Jobs
Science/technology Assets
Science & tech businesses base
Societal challenges
(Science & tech skills)
OUTPUTS
500 Co’s supp
100 new Co’s
1425 new jobs
120 Co’s with Res Orgs
£31m Priv Match
FUNDING
Evergreen- £25m
Grant - £27m
TOTAL - £52 m
SCIENCE & INNOVATION - ACTIVITIES
1.Start up & growth businesses
2.International competitiveness
3.Access to finance (North West Fund)
4. Supporting companies with tech developments
5.(Leadership, management & mentoring skills)
COMPETITVE BUSINESS - ACTIVITIES
OUTPUTS
4370 new jobs
6870 Co’s supp
1469 New Co’s supp
70 Co’s new markets
340 Co’s with Res Orgs
FUNDING
NW Fund - £32m
Evergreen - £2 million
Bus Supp Rev- £36m
TOTAL - £70m
Low Carbon investment vehicle
Whole place LC infrastructure/ transport
Whole building energy efficiency/LC generation
Support SMEs in the low carbon sectors
Energy/resource efficiency in all sectors
(Low carbon skills)
LOW CARBON - ACTIVITIES
OUTPUTS
420 new jobs
1600 Co’s supp
120 co’s new products
£25m Private Match
17,000t GHG reduction
FUNDING
LC Inv Veh - £15m
Evergreen - £10m
Grant – £25m
TOTAL - £50m

15. GM LEP ESIF 2014-20 Programme - ESF
Support young people
Empl support to LT unemployed
Employer-led workforce development
Support training providers
Innovative models for comm/social entreprise
OUTPUTS
92538 people trained
unemployed
23516 inactive
39000 employed
SKILLS, EMPLOYMENT & INCLUSION ACTIVITIES
FUNDING
Grant - £137m
Social Innov - £3m
TOTAL - £141m
Employment/skills linked to Public Service Reform
Support those affected by Welfare Reform
Support those with health related barriers
Tackling other barriers to work/low skill
SUPPORTING REFORM - ACTIVITIES
OUTPUTS
24000 people trained
10833 unemployed
10833 inactive
2333 employed
FUNDING
Grant - £24m
TOTAL - £ 24m

16. Match Funding
Match funding is to be drawn from a number of sources and will be a mixture of Opt ins to national
organisations and locally sourced public match. Given the risk associated with managing an ESF
Programme, it makes sense to opt in for the first 3 years of the programme so GM can gain from past
experience of SFA and DWP, in particular, in managing these programme.
Opt In Organisations
DWP
SFA
Big Lottery
Other sources of Match
Local Authority
CVS
Employers
HEI
Memorandum of Understanding.
GM is seeking an MoU with each Opt In organisation. The main elements GM is
trying to ensure include:
• Retains control of GM’s ESF allocation and, where possible, the associated
match
• Controls project identification, ITTs and allocation of funds
• Is involved in project appraisal and sign off.
• Can flex the amount of match it secures according to GM needs and can
extend that to include employability skills and higher level skills as required
subject to ESF eligibility.
• By opting-in there must be no hindrance to GM’s ability to use its ESF
allocation to meet priorities, or to using its ESF to invest where Government
may not invest itself. e.g .second level 2s, higher level skills etc.
• GM’s ESF allocation is not penalised if poor performance is not managed by
the opt in.
• Timely data is provided at both contract and LEP level.
• Management fee is either waived or negotiated dependent on which elements
of the management offer that GM may be best equipped to undertake
• That secondments of staff to GM are considered

17. Memorandum of Understanding
GM is seeking an MoU with each Opt In organisation. The main elements GM is trying to ensure
include:
Retains control of GM’s ESF allocation and, where possible, the associated match
Controls project identification, ITTs and allocation of funds
Development of financial models
Is involved in project appraisal and sign off.
Can flex the amount of match it secures according to GM needs and can extend that to include employability skills and higher level skills as required subject to ESF eligibility.
By opting-in there must be no hindrance to GM’s ability to use its ESF allocation to meet priorities, or to using its ESF to invest where Government may not invest itself. e.g .second level 2s, higher level skills etc.
GM’s ESF allocation is not penalised if poor performance is not managed by the opt in.
Timely data is provided at both contract and LEP level.
Management fee is either waived or negotiated dependent on which elements of the management offer that GM may be best equipped to undertake
That secondments of staff to GM are considered

18. ESF OPERATIONAL PROGRAMME FOR ENGLAND 2014-2020
INVESTMENT PRIORITIES
A: Access to employment for jobseekers and inactive people (TO8: Employment)
Will help unemployed and inactive people enter, progress in and sustain employment
Examples of actions may include:
Additional / innovative approaches to pre-employment training; training to upgrade or learn new skills; help people access / benefit from Apprenticeships; use self-employment as a route out of worklessness; projects which add value to the National Careers Service.
B: Sustainable integration of young people (TO8: Employment)
Will help young people, particularly NEETs (or those at risk of becoming NEETs) participate in the labour market and learning
Additional literacy, numeracy, ICT and employability provision; training & vocational qualifications; progressive community and informal learning; ILM activity; use self-employment as a route out of worklessness.
Early intervention
Support and enhance Traineeships/apprenticeships
C: Active Inclusion (TO9: Social Inclusion)
Will help people who are some distance from the labour market and who may face multiple disadvantages, to tackle their barriers to moving towards and progressing in employment
Basic skills / ESOL training; financial / digital & internet literacy courses to aid job searching, access to benefits and progress in work; local ‘community grant’ type activity; first contact engagement activities; local networks / groups to support job access; softer skills development and volunteering initiatives.
Capacity building for CVS to enable them to deliver ESF activities
IAG for social enterprises and collaboration between SE/CVS and businesses.

19. ESF OPERATIONAL PROGRAMME FOR ENGLAND 2014-2020
INVESTMENT PRIORITIES (p53-68 of consultation)
D: Enhancing equal access to lifelong learning (TO10: Skills)
Will help more people gain the skills they need to meet their goals and the needs of the economy. This is primarily about training, advising or supporting individuals
Examples of actions split between lower level and advanced skills which may include:
Lower Level – basic skills interventions for existing workforce; innovative vocational approaches to support those with low level skills in Maths, English and ICT; support for intermediate, technical skills for specific industries
Advanced Level – link to ERDF, growth and widening participation
E: Improving the labour market relevance of education & training systems (TO10: Skills)
Will improve employer participation and engagement in learning so that it is responsive to the needs of the local economy and help individuals progress into or within learning. This is primarily about improving partnerships and systems:
Examples of actions may include:
Support for placements / internships or other activities with SME’s that enable students / graduates to gain industry experience & skills; promoting apprenticeships; building capacity in SME’s to provide opportunities and enhance contribution of advanced skills of SME growth; developing better links between business and schools, FE and HEI’s to equip students with skills to start and grow a business

20. Next Steps Refining plan Agree LEP roles and responsibilities
Agree Opt In MoU
Consultation – your views matter
Design & development of potential programme & projects
Work with Opt in organisations to develop calls for tender
Calls for tender likely to be end of 2014/early 2015
Procurement is expected to be a mixture of larger projects management via the opt in organisations, smaller ad hoc projects and projects who are able to bring their own match funding.
Appraisals at a local and national level
Successful programme begins: Likely to be 2015