With no clarity over the long-term future of the UK Shared Prosperity Fund, Ian Ross fears its withdrawal could increase inequality in communities across the country.
The UK Shared Prosperity Fund was put in place in 2022 to replace the European Social Fund, following the UK’s withdrawal from the European Union.
It is a central pillar of the UK government’s Leveling Up agenda. With the aim of the fund being to help build pride in place and increase life chances for those who are economically inactive. This is achieved by boosting productivity, pay, jobs and living standards, spreading opportunities, improving public services, and restoring a sense of community and local pride.
By the end of March 2025, when the current UK Shared Prosperity Fund is due to come to an end, Wales will have received £585 million of the £2.5 billion that was made available to the whole of the UK. £101 million is dedicated to improving adult numeracy in Wales through a program called Multiply.
The £585 million fund was made accessible directly to local authorities across Wales to invest in reviving communities and tackling economic decline, with much of the money having been invested in regenerating high streets, addressing anti-social behaviour, and facilitating job opportunities for economically inactive people.
If the fund stops, then where will the money come from to support those who remain economically inactive?
When the fund was first made available in 2022, 22% of people of working age in the UK were economically inactive – this is people who are neither working nor looking for work. Since then, this number has dropped to 20% in Wales (as of September 2023), with a UK average of 17.5%.
This reduction in economic activity since the fund was allocated demonstrates the positive impact it is having on employability services. However, the question is, if the fund stops, then where will the money come from to support those who remain economically inactive?
The fund was allocated with the aim of empowering Welsh communities, promoting economic growth, and addressing regional disparities by providing targeted funding and local control.
At Whitehead-Ross Education we were allocated £2.2m of UK Shared Prosperity funding through Neath Port Talbot Council, Newport City Council and Swansea Council for both Multiply numeracy and digital skills training courses.
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Through the Multiply programme, we are supporting 1,250 people in NPT and Swansea to achieve Level 2 Maths Qualifications, which is equivalent to a GCSE. This is a key qualification required by most employers and is therefore vital for people seeking permanent employment.
We also used the funds to create a new Digital Skills Hub in the area which has supported a further 450 participants over the age of 19 to bolster their employment prospects in the digital skills sector, from basic skills to coding and principles of cyber security.
By March next year, we anticipate having supported over 2,300 people in NPT, Newport and Swansea to improve their employment prospects.
At a time when economic inactivity is decreasing across Wales, we are at the forefront of a campaign calling for more clarity from the UK Government on the future of the UK Shared Prosperity Fund.
The initiatives supported by the UK Shared Prosperity Fund help to break down social inequalities across communities by offering people the opportunity to acquire the vital skills needed to secure local well-paid employment. This in turn enables them to take steps into new opportunities, improve their life chances, and ultimately reduce economic inactivity.
With no current communication from the UK Government regarding plans to replace the fund, we are extremely concerned that the employability services the UKSPF currently supports will simply have to end. This will in turn significantly impact disadvantaged communities, consequently leading to rising inequalities and growing social disparities with the people most in need missing out on vital upskilling opportunities. This could lead to rising unemployment, homelessness, anti-social behavior, and an increase in economic inactivity once more.
At a time when economic inactivity is decreasing across Wales, we are at the forefront of a campaign calling for more clarity from the UK Government on the future of the UK Shared Prosperity Fund.
While there have been rumblings of a UKSPF2, there has been no communication to date on what this might look like, leaving organizations like Whitehead-Ross Education very much in the dark.
Although March 2025 may seem like a long way in the future, local authorities will need to plan and finalize their procurement processes to access a piece of the fund and make it available to organizations within their county.
Without clarity, many people could simply be left behind.
Whitehead-Ross Education is an adult education and social service provision that operates six training centers in South Wales and supports more than 3,500 people every year. Its work includes support for unemployed individuals to secure and retain jobs through employability programs like Jobs Growth Wales Plus, adult education and social service provision.
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