Bryan HayAcademics from De Montfort University Leicester (DMU) have raised concerns about the significant impact of funding cuts on third-sector organisations (TSOs) that assist vulnerable individuals in accessing employment, education, or training.
The report, conducted in collaboration with the Employment Related Services Association (ERSA), indicates that 74% of TSOs have experienced funding reductions, severely affecting their operations.
The research, led by Professor Jonathan Payne and Dr. Peter Butler from DMU’s People, Organisations and Work Institute, alongside Dr. Jonathan Rose, surveyed 64 TSOs and included in-depth interviews with 10 providers.
Findings show that the termination of the EU’s European Social Fund (ESF) has led to drastic funding cuts for 59% of the surveyed organisations, resulting in staff layoffs and potential closures.
Despite the introduction of the UK Shared Prosperity Fund (UKSPF) as a replacement, the support it offers is less substantial and delayed, particularly for ‘people and skills’ priorities. This shift has forced TSOs to apply for smaller, short-term funding from various local authorities, complicating their operations and making it difficult to maintain experienced staff.
Professor Payne expressed the urgency of the situation, stating: “The third-sector plays a vital role in supporting some of the most vulnerable in society to take the steps needed to progress towards jobs or training that they want to do and which fits with their life circumstances. It is vital that government acts quickly to provide clarity on the future of UKSPF to avoid another cliff edge occurring next March and puts in place long-term funding that can stabilise the sector and prevent the further loss of experienced support workers.”
Elizabeth Taylor, CEO of ERSA, echoed these concerns, emphasising the inadequacy of UKSPF in replacing ESF funding: “UKSPF has failed to replace the funding that came from Europe for employment support.
“Projects that delivered employment support services for those most disadvantaged in the labour market have diminished, the impact of this is bad for people, employers, the economy, and local communities. There must be an extension of the current UKSPF allocation, and clear guidelines for people and skills going forward. Let’s fix this for the future of Britain’s workforce and local economies.”
