Will the UK Shared Prosperity Fund go over the cliff edge in 2025?

All main parties must commit now to renewing this vital funding or there won’t be enough time to put plans in place for next March

All main parties must commit now to renewing this vital funding or there won’t be enough time to put plans in place for next March

17 Mar 2024, 5:00

As a general election looms ever closer, one thing all political parties have in common is their silence on what will happen to the UK Shared Prosperity Fund (UKSPF) beyond March 2025.  The UKSPF is a central pillar of the UK Government’s ‘Levelling Up’ agenda. The fund replaced European funding following the UK’s withdrawal from the European Union and is providing £2.6 billion of new funding for local investment by March 2025.

Brexit failed to deliver for the employability and skills sector.  €16.4 billion (around £15.4 billion at July 2020 exchange rates) was received by the UK during 2014 to 2020 through European Structural and Investment (ESI) Funds.  In contrast, a mere £2.6 billion of UKSPF funding over a 3-year period was made available by the UK Government. This was never going to have the impact nor fill the void left behind by European funding. 

As was widely predicted and as I set out in my June 2022 article in these pages, a large chunk of this funding was swallowed up by local authorities after years of austerity. Very little money actually made it out of town halls to sustain organisations who were struggling to survive after European funding came to an end.

Whitehead-Ross Education has been very fortunate to secure £2.4 million of UKSPF contracts across nine local authorities in South Wales and South West England. Despite very tight implementation timescales and many local authorities lacking concise guidance from the Department for Levelling Up, Housing and Communities (DLUHC), the funding is enabling us to support almost 1,900 participants. This includes providing support to disengaged young people to re-enter education and employment, delivering Multiply numeracy provision and providing digital upskilling for economically inactive individuals among other activities.

All of this work is delivered in economically disadvantaged communities across the UK and targeted at supporting the hardest to reach. And all of this work is at risk beyond March 2025 as all political parties fail to commit to further funding for the UKSPF. It was bad enough that the UK lost £15.4 billion of European funding. Now, we are on track for seeing the UKSPF go over the cliff edge come March next year.

Without it, there is no plan to support people back into work

I have heard rumours in Wales that plans are being drafted by DLUHC for UKSPF 2.  However, a decision needs to be made fast otherwise local authorities will have little time to plan and finalise their procurement processes ahead of March 2025.  Once a general election is called and we enter purdah, government decision making will grind to a halt. We therefore need all political parties to commit now to sustaining the UKSPF to enable proper planning and sustainability of valuable projects.

Economic inactivity – the proportion of people who are neither working nor looking for work – has risen since the pandemic. In 2022, 22 per cent of working-age people in England, Scotland and Wales were economically inactive – some 2.5 million individuals – in spite of workforce shortages in key economic sectors.

The European Social Fund and now the UKSPF have enabled projects to provide tailored and specialist support to target priority groups such as those suffering from ill health, the over-50s, young people and single parents.

Just this week, shadow work and pensions secretary Liz Kendall announced that ‘a life on benefits’ will not be an option under a Labour government. If the phrase ‘a life on benefits’ seems familiar, it might be because it appeared in chancellor Jeremy Hunt’s Conservative conference speech last November. Clearly, the major parties agree that unemployment is a scourge and major economic headwind.

Without a shared prosperity fund, there is no plan and no money to support the groups who are most at risk of enforced worklessness back into the workplace. The predictable consequence will be rising inequality and a failure to move the dial on the number of benefit claimants.

For all these reasons, Westminster must offer clarity and certainty about the future of this vital funding without delay.

Latest education roles from

Chief Education Officer (Deputy CEO)

Chief Education Officer (Deputy CEO)

Romero Catholic Academy Trust

Director of Academy Finance and Operations

Director of Academy Finance and Operations

Ormiston Academies Trust

Principal & Chief Executive

Principal & Chief Executive

Truro & Penwith College

Group Director of Marketing, Communications & External Engagement

Group Director of Marketing, Communications & External Engagement

London & South East Education Group

Sponsored posts

Sponsored post

Supporting the UK’s Transport Decarbonisation Plan Through Skills

The UK Government’s Decarbonising Transport: A Better, Greener Britain strategy sets a legally binding path towards a net-zero transport...

Advertorial
Sponsored post

Project power: ASDAN expands its qualifications portfolio

From 2026, ASDAN’s planned Foundation and Higher Project Qualifications will sit alongside its Extended Project Qualification[CM1] , creating a complete...

Advertorial
ATAs

Spotlight on excellence: Nominations now open for the Apprenticeship & Training Awards 2026

Nominations are open for the 2026 Apprenticeship & Training Awards, celebrating outstanding employers and providers with national recognition, a...

FE Week Reporter
Sponsored post

Funding Adult Green Skills

New sources of funding are available to finance the delivery of green skills to all learners. Government policy is...

Tyler Palmer

More from this theme

Adult education, Skills reform

10-year adult ed rescue plan would boost economy by £22bn, says L&W

New report calls for tripling level 2 and 3 achievements and expanded lifelong loan entitlement

Anviksha Patel
Adult education, Apprenticeships, Colleges, SEND, Skills reform, T Levels

FE ‘engine’ running on fumes as MPs call for funding and pay reforms

Education committee makes 40+ wide-ranging recommendations concluding its future of FE inquiry

Anviksha Patel
Adult education

Sudden closures hit Derbyshire adult education centres

Angry MP slams lack of public consultation

Josh Mellor
Adult education

Historic adult education centre considers merger amid financial intervention

The FE Commissioner called the charity's budget management processes 'inadequate'

Josh Mellor

Your thoughts

Leave a Reply

One comment

  1. Albert Wright

    I agree there is a need to”level up”, but is this the best way to do it?

    Should the approach be more strategic and longer term? Local disadvantged areas have been with us for decades without achieving much progress, despite many pilots and policies.Often there have been too many different interventions involving multiple organisations and few case studies to show best practice that has been implemented successfully.

    Perhaps we need more tough love as well as in depth support for individual families, to change expectations of the young people in these areas to ensure a life on benefits is not considered desireable and sufficient.