The
European Structural Funds
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These pages aim to give a simple overview of European
Structural Funds in the UK. They provide information for
potential applicants, potential partners and anyone wishing
to know more about the funds. They also provide contacts
for further information about the funds in the UK and in
Europe.
Structural Funds are the European Union's main instruments
for supporting social and economic restructuring across
the Union. They account for over a third of the European
Union budget. The UK's allocation from the Structural Funds
for the period 2000 - 2006 is over £10 billion.
FURTHER INFORMATION
1. Structural Funds Available in the
UK
2. Objectives of the Structural Funds
3. Administration of the Structural
Funds in the UK
4. Community Initiatives
5. Frequently Asked Questions
6. Examples of Structural Fund Projects
7. What's New
Annexes
A) Contacts (including Regional
Development Agencies) - Structural Funds Programme Administration
B) Map of UK Structural Fund coverage
for 2000 - 2006
C) Objective 2: List of UK Areas
D) Financial Profiles of UK Structural
Fund Allocations 2000-2006
E) Match Funding for Structural Funds
F) Single Manual for
Structural Funds
G) Links to Related Web-Sites
H) Consultation on the
Future of the Structural Funds post-2006 
(768Kb)
I) Responses to the Consultation on the Future of the
Structural Funds.
J) The Future of the Structural Funds - Regional
Consultation Events 2003
K) "Objective", the UK
Structural Funds newsletter
(104Kb)
1. STRUCTURAL FUNDS AVAILABLE
IN THE UK
There are four Structural Funds: ERDF, ESF, EAGGF and
FIFG. These funds contribute to the economic development of
disadvantaged regions of the UK. 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. The
aims of the funds, and in which priority 'Objective' area
they can be spent, are set out below: -
- The European Regional Development Fund (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.
- The European Social Fund (ESF);
funds training, human resources and equal opportunities
schemes to promote employability of people in both Objective
1 and 3 areas. In Objective 2 areas ESF may be used to
complement the ERDF activities.
- The guidance section of the European 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.
2. OBJECTIVES OF THE STRUCTURAL
FUNDS: OBJECTIVES 1, 2 AND 3.
Most structural fund spending is targeted on specific regions,
known as Objective 1 and 2 regions. There are separate national
Objective 3 programmes in England, Wales, Scotland and Northern
Ireland. The national and regional bodies responsible have
been preparing the new programmes for the UK for 2000 -
2006. The programmes must be approved by the Commission;
set out below are the various stages in the approval process
that programmes have reached.
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 which also qualifies for
a unique PEACE programme. In total the UK will receive over
£3.9 billion of Objective 1 money between 2000 - 2006.
Most Objective 1 programmes were submitted in October 1999
by the regions and devolved administrations and were agreed
with the Commission in July 2000.
Further information is available on:
www.eurofundingnw.org.uk
www.goyh.gov.uk/objective1
www.objectiveone.com/ob1
www.wefo.wales.gov.uk
www.scotland.gov.uk
www.europe-dfpni.gov.uk
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. In addition, areas that had Objective
2 or 5b status in the previous programming period are eligible
for transitional funding until 2005. Including transition,
Objective 2 covers well over nineteen million people in
the UK. In total, the UK will receive over £3.1 billion
for UK Objective 2 and transitional Objective 2 areas for
the period 2000 - 2006.
Programmes for England and Scotland were submitted before
the deadline set by the regulations for the submission of
the regional Objective 2 Single Programming Documents (SPDs).
All Objective 2 programmes have now been agreed.
Click here for the list of Objective
2 areas 2000 - 2006 by wards in local authority districts
Click here to view the UK European Structural
Fund map for 2000 - 2006.
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. The
UK will benefit from just under £3 billion of Objective
3 money for 2000-06. The English operational programme was
adopted on the 18th of July 2000 and projects have already
been approved in a number of regions. Application forms
and guidance are available on the Regional Office Web Sites.
Further information is available on
www.esfnews.org.uk
www.scotland.gov.uk/esf
www.europe-dfpni.gov.uk
www.wefo.wales.gov.uk
3. ADMINISTRATION
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.
4. COMMUNITY INITIATIVES
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.
Click here for contacts for further
information on Community Initiatives
5. FAQ's
How much money is 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.
How much money 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. A list of potential sources of match funding in
England is on this website at Annex E.
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.
What kind of projects are funded?
This can vary from region to region. Each region writes
a Single Programming Document which sets out what it wants
the funds to achieve over the eligible period. These aims
must tie in with the overall aims of the funds to promote
the economic and social cohesion of the European Union.
Projects are required to deliver a direct, measurable and
positive impact on the economy of the area.
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.
6. EXAMPLES OF STRUCTURAL FUNDS
PROJECTS
NORTHERN IRELAND - Cross Harbour Rail Link, Belfast
Opened in 1994, and supported 75% by EU Structural Funds,
it was the final link in the creation of a fully integrated
Northern Ireland rail network. The whole project, which
included a maintenance depot, Yorkgate Station and the Rail
Link, cost £30.5m.
NORTH EAST ENGLAND - Parkside Community Centre, Seaham
Co Durham
This project provided training, business counselling and
advice. It also provided outreach health and social services,
childcare and leisure facilities including external play
area and all weather sports pitch. This project is expected
to have created, directly or indirectly 200 jobs. 110 new
training places will be created, and 30 trainees trained.
This project received an Objective 2 ERDF grant of £190,000
and Single Regeneration Budget challenge fund support totalling
£418,000. The European funds were used for the training,
business counselling and advice activities.
Knowledge House
The Knowledge House project was established 4 years ago
by a consortium of all the North-East's Universities (previously
known as HESIN, now Universities for the North East). The
initiative aimed to provide the region's Small and Medium
sized Enterprises (SMEs) with an easy access point to tap
into the wealth of industrial and technological expertise
in the North East's acclaimed institutions. Knowledge House
targets SME's and provides them with intensive consultancy,
training, or referral to a relevant organisation. This is
successful as businesses are often not aware of their gaps
in expertise, and Knowledge House simplifies the process
of solving these problems.
The Knowledge House model was cited as a national exemplar
in the Dearing Report (1987) because the project has exceeded
its output expectations and proved its success as a broker
service between academia and industry. In particular, Knowledge
House has been increasingly involved in projects dealing
with the development of new products and processes. The
project is funded by the partner universities and participating
business, and has received £1,830,065 in ERDF money.
Electricity for Enterprise
In 1997, a feasibility study funded by EAGFF into the possibilities
of supplying mains/alternative sources of electricity to
remote areas of Northumberland resulted in the development
of two significant projects. One is targeted at the non-agricultural
business community (£222,812 ERDF), the other at the
agricultural business community (£345,653 EAGGF).
The projects comprise an advice and capital grant scheme
to assist with the cost of improving 24 hour electricity
supplies to properties (farms, small holdings, businesses
and a small number of domestic properties where deemed viable)
that were without mains electricity. Expert advice is given
on the most cost-effective solution to remoteness, including
connection to mains electricity, renewable energy sources
or power generation.
The projects are continuing and are expected to assist
directly 150 businesses, with 50 assisted to expand or diversify,
thereby helping to create 100 permanent jobs and safeguard
a further 180. 300 people will also gain improved access
to essential services.
WEST MIDLANDS - Lighthouse Media Centre Development
The project's aims were to enhance the facilities available
at the Lighthouse Media Centre for small firms and self-employed
people working in the application of new media technologies
in the information, cultural, entertainment and leisure
industries; and to extend training opportunities for the
media and cultural industries. The grant offered was £252,000
of total project costs of £630,000. This was for phases
one and two of a three phase project.
International Convention Centre (ICC)
The Centre was a very important project for the West Midlands.
The largely private sector development of Brindley Place
would not have occurred without the ICC and its associated
projects. Recent events held at the site include the G8
conference, Eurovision Song Contest and the Davis Cup. With
a grant of £50million on an eligible expenditure of
£180 million 2,600 jobs were directly created and
a further 10,000 indirect jobs created.
Webtrain, Birmingham
Situated in an area suffering from industrial decline, it
has received Objective 3 ESF funding to provide training
and work experience for unemployed adults. East Birmingham
College runs it. Its aims are:
a) to break down areas which create social exclusion,
and target people with learning difficulties or disabilities
and disadvantaged people from ethnic minority communities;
b) to maximise the benefits of technology and play a major
role in regeneration of the community.
Of those who completed the training, 67% went into employment
or further education.
SOUTH WEST OF ENGLAND - Tate of the West Gallery, St
Ives, Cornwall.
Supported by £787,000 of European grants, it was opened
by The Prince of Wales at St Ives in 1993. Many permanent
posts were filled locally, and 60 people were employed in
the construction work, which took two years to complete
at a total cost of £3million.
Multi-Skilled, Sustainable, Timber Frame Build and Train
Scheme, Bournemouth Churches Housing Association
This Objective 3 ESF supported scheme is aimed at 16-24
year old unemployed people. The scheme will provide them
with essential skills to ensure permanent integration into
the full-time employment market. There is a severe shortage
of qualified timber frame erectors and fitters in the region.
The scheme aims to provide: -
a) a permanent home on an assured tenancy or affordable
rent;
b) a nationally recognised vocational qualification in
a trade with genuine job opportunities;
c) human resource development guidance with motivation
and orientation;
d) a reference proving that trainees have completed the
scheme and helped to build their own homes.
What's New
Annex A
Structural Funds Programme Administration
Annex B
UK Structural Funds Map 2000- 2006
MS Word (280Kb)
Annex C
List of Objective 2 areas by ward
Annex D
Total
UK Structural Fund allocation.(Objective 1 and 2 funding
by region)
Annex E
Match Funding Document
Annex F
Single Manual for
Structural Funds
Annex G
Related Web-Sites
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