Charities and community organizations in Northern Ireland are facing significant challenges as they navigate the transition from the European Union’s European Social Fund (ESF) to the UK Shared Prosperity Fund (UKSPF). The new UKSPF was introduced in March 2023. It aims to “level up” local communities by awarding grants to nonprofits that help people get jobs by providing training programs. Cash flow issues and delivery partner payment schedules are raising alarm bells to delivery partners.
The UKSPF had an important role in replacing the ESF, which has ended in Northern Ireland with Brexit. Breaking down the challenges Under the new funding model, these delivery organizations are paid up-front on a six-month schedule. Despite assurances from the Ministry of Housing, Communities and Local Government (MHCLG) that “our payment schedule remains the same as in previous years,” many organizations report difficulties in managing finances and sustaining operations.
Rev Andrew Irvine, a representative from East Belfast Mission, which is one of five groups running the Belfast Works project, voiced his frustration regarding the funding changes. “They’re saying we’re not going to fund you until the end of each quarter, so for Belfast Works that means five local community organisations trying to finance the government to the tune of a million pounds a quarter,” he stated.
Belfast Works free training for sector a variety of jobs Skills such as barbering, classroom assistant, fitness instructor, catering worker, healthcare and security can all be learned. GEMS Northern Ireland has been an indispensable partner in Belfast Works. They provide English and numeracy classes to equip people as they reenter the workforce.
The substantial financial strain is shown in the desperation by many organizations to keep their own staff paid. Susan Russam from Belfast Works Connect highlighted the urgency of the situation: “Our salary bill for Belfast Works Connect, which is due to be paid next week, is just short of £50,000.” She added, “We can recover that funding in April. We can’t recover it in May.”
For countless community-based organizations, these fiscal challenges may prove to be catastrophically deadly. Rev Irvine stressed that without the right investment, jobs would inevitably be put at risk. “If we can’t do that then this community – in which 67% of those of working age are currently not in work – lose this service,” he explained. “East Belfast Mission needs to make 17 people redundant and the partnership needs to make 96 people redundant.”
Despite all of these obstacles, graduates of the training programs are overwhelmingly appreciative of the help they are given. Mohammad Alhamwi remarked, “I’m very happy to be here, it’s helped me a lot.” Olena Karpenko echoed this sentiment, stating, “For me, it’s very important – new information, new experience, experienced teachers, supportive people.”
Appreciation for cash flow difficulties
MHCLG understands the cash flow difficulties that organisations may face. They argue that the funding structure still matches with past norms. “Cashflow for your organisation and partners may present challenges,” stated a representative from the department.
As community organizations strive to maintain their essential services, there is a growing call for adequate support from governmental bodies. According to Rev Irvine, this is only possible with the necessary funding for anti-poverty initiatives that create jobs. “If this idea is to get people out of poverty by getting them into work, then let’s fund this properly and stop behaving like this with the delivery partners,” he urged.
