European Resource Procurement - European Funding

The European Union budget is made up of a proportion of the VAT charged on goods and services in the Member States, a share of each countries Gross National Product and custom duties from non-EU countries on goods which are imported into the EU.

A large proportion of these resources is redistributed into four European Structural Funds, each used to promote the economic and social development of the regions perceived to be lagging behind.

A region may have access to one or more of the four Structural Funds, depending on whether it has Objective 1 or 2 status. All other regions have Objective 3 status. Rotherham borough currently has objective 1 status.

The four Structural Funds are:

• The European Regional Development Fund (ERDF)
• The European Social Fund (ESF)
• European Agricultural Guidance and Guarantee Fund (EAGGF)
• The Financial Instrument for Fisheries Guidance (FIFG)

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The European Regional Development Fund (ERDF)

The European Regional Development Fund (ERDF) was set up in 1975 to stimulate economic development in the least prosperous regions of the European Union (EU).

The ERDF aims to improve economic prosperity and social inclusion by investing in projects to promote development and encourage the diversification of industry into other sectors in areas lagging behind. This fund is available in Objective 1 and 2 areas.

ERDF is aimed at economic regeneration projects promoted by the public sector. This involves:

• government departments
• Regional Development Agencies (RDAs)
• local authorities
• further and Higher Education establishments
• other public bodies
• community and Voluntary Sector organisations

In certain circumstances, the fund can help the development of small and medium-sized enterprises (SMEs). Private sector companies are encouraged to present applications in partnership with a public sector body.

Individuals may not apply.

There is no monetary limit set for ERDF projects. Projects may request up to 50% of the total costs from ERDF, although intervention rates can vary depending on a number of factors. The rest of the funding, known as 'match funding' comes from other sources such as:

• regional Development Agencies
• local Authorities
• government schemes
• other Public Bodies
• the Private Sector
• paid Staff and Volunteer time

You can find a guide to potential sources of match funding on the DTI web site at www.dti.gov.uk

For further information on bidding for ERDF in this area, please contact info@rido.org.uk

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The European Social Fund (ESF)

The ESF funds training, human resources and equal opportunities schemes to promote employability of people in both Objective 1 and 3 areas.

ESF is the main source of finance that the EU uses to help create and protect jobs. It supports the National Action Plan for Employment (NAP) which is produced every year. The NAP sets out the main UK policies and initiatives in line with the European Employment Strategy. It is written by the UK Government for England, Scotland, Wales and Gibraltar.

The ESF is used to give financial support towards the running costs of projects run by a variety of organisations. These projects can include those for training, employment, education, research and childcare. ESF also supports Government programmes, including New Deal.

The whole area of eligibility for European funding is a complex one. If you meet the following criteria you may be eligible to apply for European Social Funding.

You are a legally constituted organisation (i.e formed with a legal document such as an agreement of memorandum of association). Large companies are eligible to apply for ESF providing they work in partnership with small and medium sized enterprises (SMES) and at least 50% of the beneficiaries will be from SMES.

Individuals cannot apply for European Social Fund money.

Your organisation is involved in an activity in one of the supported measures and is currently in receipt of financial support from the public sector (typically 10% of total costs).

Active Labour Market Policies

Measure 1: To provide advice, guidance, and support to enable people to develop active and continuous job search strategies and prevent them from moving into long term unemployment.

Measure 2: To improve the employability of the unemployed returners and young people of working age through targeted intervention to enhance vocational and other key skills and remove external barrier to labour market entry.

Equal Opportunities and Social Inclusion

Measure 1: To widen access to basic skills, directed at those groups disadvantaged, excluded or under-represented in the work place

Measure 2: To provide help to improve the employability and remove barriers to labour market entry for those groups disadvantaged in the labour market and to develop local responses to assist individuals with multiple disadvantage in the labour market who face the risk of social exclusion.

Measure 3: To combat discrimination in thelabour market, in particular to combat race, disability and age discrimination and improve the employability of these groups.

Lifelong Learning

Measure 1: Promoting wider access and participation in lifelong learning (especially those groups least likely to take part in lifelong learning activities and lacking basic and key skills)

Measure 2: Improving employability through directing and supporting lifelong learning provisions that it is responsive to the changing needs of employers, such as in the fields of IT, management and the environment

Adaptability and Entrepreneurship

Measure 1: To update and upgrade employee's vocational skills including basic and key skills

Measure 2: To identify and meet emerging skill shortages, including higher level

Measure 3: Encouraging entrepreneurship of individuals and competitiveness of business, particularly SMEs

Improving Women's Participation in the Labour Market

Measure 1: To improve access to learning and remove barriers to employment

Measure 2: To research into issues related to gender discrimination in employment such as recruitment, pay, segregation and progression

Your application for funding is towards running costs only. Individual items exceeding £1000 are not eligible. Other ineligible costs include loan and current account interest

As this is a complex area you may wish to discuss in greater detail your eligibility to apply for European Social Funding by contacting us.

ESF pays for a proportion (usually 45%) of a project's costs. The remaining amount (at least 55%) is known as match funding. Match funding can come from both public and private sources but at least 10% must be provided by a public body.

ESF will contribute to any actual eligible costs spent in carrying out approved activity. These can include for example staff and utilities (gas, electricity and water) costs. A full listing of ineligible costs is available in the guidance.

Application deadlines are set by GOYW - often at relatively short notice. For the latest information on the deadlines for bidding please contact the Objective 1 Programme Directorate,
email: yhenquiriesobj1@goyh.giv.uk.
tel 01709 763600

Projects are scored, appraised and selected through competitive bidding at the regional level.

To be successful the project will at least:

• add value (in other words, would not take place or would be less effective without ESF support)
• give good value for money
• contribute to meeting the ESF Objectives or Community Initiative (and therefore, the National Action Plan for Employment)
• meet the more specific targets and requirements of the appropriate Regional Development Plan

ESF support is available between 2000 and 2006 under the current EU regulations. This is known as a "programme period". Organisations can apply for more than one project during this period. Individual projects are not usually supported for longer than 24 months at a time, although additional funds may be applied for later.
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European Agricultural Guidance and Guarantee Fund (EAGGF)

EAGGF is available in rural Objective 1 areas to encourage the restructuring and diversification of rural areas, to promote economic prosperity and social inclusion, whilst protecting and maintaining the environment and our rural heritage. In areas outside Objective 1, the EAGGF (Guarantee section) provides funding within the England Rural Development.
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The Financial Instrument for Fisheries Guidance (FIFG)

The FIFG funds projects to modernise the structure of the fisheries sector and related industries and to encourage diversification of the workforce and fisheries industry into other sectors. It also aims to ensure the future of the industry through achieving a balance between resources and their exploitation.

Further Information

More detailed guidance on funding from the European Union is available at: www.cec.org.uk