THE outcome of the Brexit negotiations will determine the future of five projects helping people in Newport into work worth more than £6 million.
As part of the European Union’s (EU) European Social Fund, Newport City Council has already received £2.7 million over the past three years to deliver schemes aimed at “reducing the numbers of those at risk of not entering employment, education and training, and increasing the employment opportunities of the long term unemployed, economically inactive and those who have complex barriers to employment” - and is in line for another £4 million between now and 2022.
But, with Brexit negotiations ongoing, the future of the vital schemes after 2022 is hanging in the balance.
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A Freedom of Information (FOI) request by the Local Democracy Reporting Service found that there are five schemes led by Newport council reliant on such EU funding via the Welsh Government European Office (WEFO), costing a total of £30.7 million. The WEFO will hand over £15.8 million towards the schemes, with £6.7 million of this going to Newport Council.
What are the five projects that rely on EU funding?
- More than £6 million of the total funding will go towards the Inspire 2 Achieve scheme, which aims to reduce the number of those aged between 11 and 24 at risk of becoming not in education, employment or training (NEET), and will cost partners £14.6 million over the eight-year period.
Newport council, which leads the project, will receive £1.6 million in EU funding towards it.
The project is run with Newport City Council, Cardiff City Council, Monmouthshire County Council, Vale of Glamorgan Council, Coleg Gwent, Cardiff and Vale College and Careers Wales.
- £2.8 million of the EU funding will go towards the Inspire 2 Work scheme, which aims to reduce the number of NEET 16 to 24-year-olds.
Newport council will receive £1.2 million to support this scheme.
- The Journey 2 Work scheme will receive £2.2 million from the EU to increase the employability of economically inactive and long-term unemployed people aged 25 and over, who have complex barriers to employment.
Of the £2.2 million, Newport council will receive £784,000 over the eight-year period.
- The Skills@Work scheme will receive just shy of £2 million from the EU.
The scheme aims to increase the skills levels, including work related skills, of those in the workforce with no or few skills.
For this scheme, Newport council will receive a total of £913,000.
- Newport City Council is the only beneficiary of the Communities for Work scheme and therefore receives the full EU grant of £2.2 million.
The scheme aims to help people who live in former Communities First areas, who need extra help and support to find work.
Will the funding be affected if there is a no-deal Brexit?
In an FOI response Newport City Council said: “We have received assurances from the Welsh Government European Office (WEFO) that if the UK leaves without a deal there will be no change in the existing arrangements in place and Newport City Council will be required to continue with operations including the submission and payment of claims, eligibility rules and conditions and verification checks set out in the agreements.
“As previously notified by HM Treasury in 2016 that in the event of a no deal situation, the UK Government would guarantee EU operations agreed before the UK left the EU.”
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What happens to the schemes after 2022?
Newport Council said they have received assurances that the funding will be in place until 2022.
However, there is no guarantee the funding will continue after this.
The council has said that the finance team continues to monitor the situation.
In the FOI response the council said: “Newport City Council has not received confirmation from the Welsh Government as to whether similar projects will be delivered after 2022 and will be dependent upon the final Brexit decision made by the UK Government.”
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