European funding
Information about European funding to help economic development.
As part of the European Union, funding opportunites for organisations based in the UK extend further than our homegrown funds.
There are four Structural Funds. These funds contribute to the economic development of disadvantaged regions of the UK.
Below is basic information about the European Structural Funds:
What are the four Structural Funds?
- 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)
What does each Structural Fund aim to achieve?
The European Regional Development Fund (ERDF)
Aims to promote economic and social cohesion by correcting the main regional imbalances and participating in the development and conversion of regions, while ensuring synergy with assistance from the other Structural Funds.The European Social Fund (ESF)
European Social Fund’s main purpose is to support the annual UK Employment Action Plan, which sets out how UK policies and initiatives take account of the Employment Guidelines established within the European Employment Strategy.
It aims to:
- Help unemployed and inactive people enter work
- Provide opportunities for people at a disadvantage in the labour market
- Promote lifelong learning
- Develop the skills of employed people
- Improve women’s participation in the labour marketEuropean Agricultural Guidance and Guarantee Fund (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 Plan.The Financial Instrument for Fisheries Guidance (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 fisheries resources and their exploitation
What do we mean by Objectives 1, 2 and 3?
Most structural fund spending is targeted on specific regions, known as Objective 1 and 2 regions.
A region may have access to one or more of the four Structural Funds, depending whether it has Objective 1 or 2 status; all regions have Objective 3 status.
Objective 1
Eligible areas are those that have less than 75% of EU average GDP.
It is the highest level of regional funding available from the EU. It is aimed at promoting the development and structural adjustment of the EU regions most lagging behind in development. In the UK areas that qualify are Merseyside, South Yorkshire, Cornwall and the Scilly Isles, and West Wales and the Valleys.
In addition to these areas, the UK also has two transitional Objective 1 areas, the Highlands and Islands and Northern Ireland.
Further information is available at:
Objective 2
Aims to support the economic and social conversion of areas facing structural difficulties.
It is the second highest level of funding available from the EU. Areas qualify for Objective 2, under four strands - industrial, rural, urban and fisheries.
This objective covers nearly fourteen million people in the UK.
Objective 3
This objective involves only the European Social Fund. It aims to develop labour markets and human resources and in addition, will help firms and workers adapt to new working conditions and so compete more effectively in global labour markets.
It is directed at the long-term unemployed and those facing particular barriers to finding fulfilling employment because of their disability, racial origin, or sex. Further information is available at:-
Who runs the programmes and deals with day-to-day administration?
DTI co-ordinates overall UK Government policy on the Funds and takes the lead on many issues affecting more than one fund or more than one part of the UK.
The Department for Work and Pensions has overall responsibility for the European Social Fund and the Department for Environment Food and Rural affairs leads on the EAGGF Guidance section and FIFG.
However, implementation of the Structural Funds is devolved to the Scottish Executive and the National Assembly for Wales.
In Northern Ireland the Funds are implemented by the Department for Finance and Personnel, while in England the Office of the Deputy Prime Minister (ODPM) takes the lead on the ERDF, operating through the Government Offices in the regions.
Applications for funds should be made direct to the appropriate regional Government Office in England, devolved administration in Scotland and Wales or the Department for Finance and Personnel (DFPNI) in Northern Ireland.
The Department for Work and Pensions has responsibility for European Social Fund, but applications for funds should be made to the relevant Government Office in England, to the devolved administrations in Wales and Scotland or the DFPNI in Northern Ireland.
What is the total fund available?
On 1 July 1999, the Commission announced that the UK had been allocated a total of €15.5billion (£10 billion (exchange rate 1€ = £0.65 at July 1999) of European Structural Funds for 2000- 2006.
Over the same period, the UK has also been allocated €120 million (£ 80 million) for the Financial Instrument for Fisheries Guidance and €961 million (£595 million) for the Community Initiatives.
What is the maximum amount of money that can be paid to a project?
The maximum contribution of the funds to a project depends on the type of project and where it takes place.
In practice, in the UK, Objective 1 projects can receive up to 50% funding from the Structural Funds, but the proportion may be lower, e.g. in a project which is intended to result in commercial activities and profits.
It is normally the responsibility of the applicant to find the remaining funding which must usually include public funding to match the Structural Funds contribution. However, Government Offices and Regional Development Agencies (RDAs) can help potential applicants find match funding.
Who can apply for funding?
There is no restriction: public, private and voluntary sector bodies can all make applications.
Some bodies will use the Funds to operate support schemes for businesses, especially small businesses, or to fund training or employment schemes for individuals.
How are applications dealt with?
The Government Offices in England, the Welsh European Funding Office as an executive agency of the National Assembly for Wales, the Scottish Executive in Scotland and the Department of Finance and Personnel in Northern Ireland provide the secretariat for the programmes.
They publicise the programmes and invite applications for projects. The Secretariat will also issue application forms and guidance.
Applications are judged against the criteria that have been previously drawn up by the Programme Monitoring Committee (PMC). The criteria reflect the priorities in the Single Programming Documents. The Regulations require that projects are monitored and returns are made on a regular basis to the Commission.
Q Are Community Initiatives covered?
In addition to the priority Objective areas around 5% of the Structural Fund budget will fund four Community Initiatives.
The UK will receive around £916 million for these in 2000-2006.
The current initiatives are:
- EQUAL - funds training and employability schemes to combat discrimination and inequalities in the labour market; the Department for Work and Pensions is responsible for this programme.
- LEADER + - funds rural development projects; The Department for Environment Food and Rural Affairs is responsible for this programme.
- INTERREG III - provides funding to encourage cross border, trans-national and interregional co-operation; to encourage balanced and sustainable development across the European Community. For further information contact the Office of the Deputy Prime Minister (ODPM)
- URBAN II - funds schemes in small and medium sized towns suffering from significant economic and social conversion difficulties. The Office of the Deputy Prime Minister (ODPM) are responsible for this programme.
Who can I contact for further information on European Funding Programmes?
- Government Office for the South East (GOSE)
Bridge House
1 Walnut Tree Close
Guildford
GU1 4GA
Tel: 01483 882255
Web: www.go-se.gov.uk - Surrey County Council
European Office Room
305 County Hall
Kingston-Upon-Thames
KT1 2DN
Tel: 020 8541 9452
Web: www.surreycc.gov.uk - Department for Trade and Industry
Web: www.dti.gov.uk - European Social Fund
Web: www.esf.gov.uk - Welcome Europe.Com
Web: www.welcomeurope.com
Last updated : 03/04/2007
