Last updated 16th September 2005
by Helen Nichols
Version 2 website
Launch 22nd October 2001

ESF/OBJ1-Background to the ESF/Objective One programme in South Yorkshire

Reasons for Funding

• Unemployment in the South Yorkshire region is higher than the European average due to the decline in traditional steel and coal industries
• The gross domestic produce (GDP) for the region is less than 75% of the European average

Aims of Programme
The programme aims to use around £700m of European funding matched by £1.1 billion of other UK public and private finance to deliver the 'Vision of South Yorkshire", which is to:-

• Create 35,000 new jobs
• Start 1,132 new businesses
• Boost the area's economy by £912m
• Train young people in the skills needed by new industries
• Develop and renew deprived communities

  Programme Structure
  Action to achieve this is grouped into six priorities:-

• Priority 1 - will stimulate the emergence of new growth and high technology sectors (Approx £135m)
• Priority 2 - assistance to modernise business by enhancing competitiveness and innovation (Approx £82.5m)
• Priority 3 - will build a world-leading learning region which promotes equity, employment and social inclusion (Approx £223.31m)
• Priority 4 - to develop economic opportunities in targeted communities(Approx £86.18m)
• Priority 5 - to support business investment through strategic spatial development (Approx £164m)
• Priority 6 - will provide the foundations for a successful programme
  (Approx £53m)

PRIORITY 3A : BUILDING A WORLD-LEARDING LEARNING REGION
In partnership the South Yorkshire LEA's are leading on:-

Measure 12 - An enhanced curriculum for the world of work - (£57m - ESF)· Targeted at young people age 11-19

• Will raise skill levels and improve employability
• Flagship project - South Yorkshire 13-19 Pathways to Success Projects

Measure 14 - A Learning Infrastructure for the 21st Century - (£39m - ERDF)

• Will construct an e-learning system and support network for South Yorkshire population
• Create a charitable vehicle for the sustainable renewal of ICT equipment for learners
• Create volume, high pay job and business opportunities in the ICT and knowledge-based sectors
• Flag-ship projects - Meadowhall School of Excellence and South Yorkshire E-Learning Partnership

EUROPEAN FUNDING SOURCES
European Social Fund (ESF)
ESF is revenue expenditure which aims to help improve employment opportunities in the European Union by providing financial support towards the running costs for vocational training schemes, guidance and counselling projects and job creation measures.

Eligible expenditure for ESF can be divided into three categories:-

Staff Costs - salary and wages of staff employed to deliver the project including trainers, counsellors, managers, administrative staff. Also travel and subsistence and costs of external training courses for staff.

Beneficiary Costs - wages or daily/weekly allowances paid to beneficiaries, daily travel costs, travel and subsistence for external courses and childcare costs

Other Costs - running costs such as rent, cleaning, minor repairs/maintenance, rates, water rates, insurance, gas, electricity, purchase of small items of equipment (no single item can cost more than £1,000). Also advertising, general documentation and administrative costs including stationery, postage and telephone costs, audit, legal and accountancy services and running costs of nursery provision or care of other dependants if this is provided in-house.

European Regional Development Fund (ERDF)
ERDF can be capital or revenue.
Capital projects can involve investment in property or other fixed assets that will provide the infrastructure for existing and future industry and commerce. Examples include transport facilities, environmental improvements and industrial sites, factory units and other buildings.

Eligible costs include site investigation, clearance, preparation, construction and conversion works, plant machinery and landscaping.

Revenue projects provide support services such as capacity building, advice, research and development. Eligible costs include employment costs, heating, rent, rates, publicity and equipment with an asset life of less than one year.

Ann Scott
Priority 3 European Development Officer (Sheffield)