Steve Hill (Head of Benefits) and Robert Mee (Programme Analysis and Review Officer) presented the report regarding the European Social Fund, Community Employment Scheme (ESF), which was co – financed through the European Union, match funded by the Council and administered by London Council’s.

This was a three year programme and the report provided an update of projects funded through round one, and an update on round two in respect of the nine organisations that had provisionally secured funded. It was noted that the release of payment was dependant on results and that the London Councils and LBTH had carried out due diligence checks of the organisations and that that Officers and the Head of Audit would carry out further checks. Officers expressed disappointment at the number of applications for round two funding and London Councils were aware of these concerns. Officers also reported that they were working with the GLA and London Councils to review the threshold and to increase take up. 

The Mayor invited the Chair of GSSC to comment on the report. He indicated that the GSSC expressed some concern about the number of round two organisations with a track record in providing employment and skills training. The GSSC were however mindful of the projects engagement with the Work Path initiative. The GSSC also sought assurances about the effectiveness of the performance monitoring arrangements. A summary of the GSSC questions were circulated at the meeting. The GSSC noted the responses and endorsed the report.

The Mayor then invited GDSC Members to comment on the report. Members noted the issues around the track record of the applicants and it was noted that assurances were sought, at the assessment stage, regarding their ability to deliver employment related training. Members also welcomed the due diligence checks and requested that this be reported to the London Councils. It was felt that these checks were very important.

Members also expressed disappointment at the outcome of the round two application process and the lack of interest from groups with a stronger track record in providing education and funding training. Members sought clarity on the reasons for this and how this would be addressed.  In response, Officers expressed the view that a possible reason for this could be the low income threshold. It might deter a more broader range of groups from applying. It was confirmed that Officers would be carrying out further work with London Councils to look at increasing the threshold and ways of encouraging more groups to apply. However it should be noted that raising the threshold significantly could change the nature of the initiative - moving it away from providing small grants to small organisations to build capacity. It was also important to note the information in the attachments that provided a summary of the projects achievements.

Members welcomed the plans to encourage more groups to apply and considered that the verification checks were vital. The GDSC supported the recommendations.

RESOLVED:

1.         That the organisations and projects provisionally funded through Round 2 of the ESF Community Grants Programme as detailed in 3.6 and 3.7 be noted.

2.         That the progress of projects funded in Round 1 as detailed in 3.4 and 3.5 and Appendix 1 be noted.