Northern Ireland

British government announces funding for charities that lost European money

Eighteen projects across the north will receive backing through the UK Shared Prosperity Fund
Eighteen projects across the north will receive backing through the UK Shared Prosperity Fund Eighteen projects across the north will receive backing through the UK Shared Prosperity Fund

The British government has announced a £57 million funding package to support Northern Ireland charities and community organisations facing a financial crisis due to a loss of European money.

Eighteen projects across the north will receive backing through the UK Shared Prosperity Fund (UKSPF) with a focus on groups helping support people into work.

The announcement comes just a day before financial support provided by the European Social Fund (ESF) comes to an end due as a consequence of Brexit. Some charities in Northern Ireland had warned they would have to cut staff and support programmes if funding was not replaced.

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Making the announcement, Levelling Up Minister Dehenna Davison said the Government was increasing the pot originally earmarked for Northern Ireland by £15 million. "We are making the most of opportunities outside the European Union to deliver for people in Northern Ireland," she said.

"It is fantastic that organisations have come together in new partnerships to deliver creative solutions to economic inactivity through the UK Shared Prosperity Fund. In recognition of the huge impact charities, businesses and colleges are having on the ground, I'm delighted to announce that we are boosting the original funding pot for this competition by an additional £15 million to help them support even more people into fulfilling jobs.

"This is an important milestone in the investment we are making to level up Northern Ireland and the whole of the UK."

The ESF funding had been worth around £40 million. This money was 35% match-funded from Stormont, raising the sum to £54 million.

However, the Stormont executive is currently not operating and civil servants are limited in the spending decisions they can take. The government announced plans for a £42 million replacement funding package in December - a sum that has now risen to £57 million.

The successful projects were selected after an open competition among organisations in Northern Ireland for a share of the cash. Other groups will have been left disappointed after losing out in efforts to secure replacement funding.

The government said the successful project bids would benefit around 100 organisations and support more than 25,000 economically inactive people in Northern Ireland. The grants allocated on Friday focusing on economic inactivity represents 45% of a total of £127 million the government has committed to spend in Northern Ireland through the UK Shared Prosperity Fund.

Secretary of State Chris Heaton-Harris welcomed the announcement, saying: "The £57 million funding will support the vital work of community and voluntary organisations, enabling them to support people in Northern Ireland into secure and sustainable employment," he said.

"Through its People and Skills strand, the UK Shared Prosperity Fund will invest in skills training and interventions to support economically inactive people in Northern Ireland. This is key to boosting productivity and harnessing Northern Ireland's growth potential."