1. www.londoncouncils.gov.uk
Supporting a diverse supply chain
through ESF in London 2014 - 2020
Dianna Neal, Head of Economy, Culture
& Tourism
Friday 16 May 2014

2. www.londoncouncils.gov.uk
Overview
• London Councils CFO
• ESF Priorities 1.1, 1.3
and 2.1
• £25m spend to date
• Match funded by Grants
Committee and
individual boroughs
• CFO status allows LA
access
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3. www.londoncouncils.gov.uk
Provision
Priority 1.1 & 2.1
• 7 Rounds
• 125 contracts, 90
providers
• 44 live contracts
Priority 1.3:
Community Grants
• 2 Rounds
• 149 contracts, 99
providers
• 57 live contracts
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4. www.londoncouncils.gov.uk
Comparative performance (2013)
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5. www.londoncouncils.gov.uk
Funding model
Main ESF
• Payment by Results but:
– 15% upfront payment
– ‘Activity’ payments e.g. training, gaining
qualifications, work placements
– Job outcome and sustained job outcome
payments (50% of funding)
Community Grants
• Grants of £5-12,000
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6. www.londoncouncils.gov.uk
Other support
Main ESF
Programme
• Bidding workshops
• Individual contract
meetings
• Training sessions
• Templates for claims
• Project handbook
• Informal visit before first
claim
Community Grants
• Workshops with
providers
With total
administration costs of
5-6 per cent of
programme spend
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7. www.londoncouncils.gov.uk
Lessons
• VCS organisations
can deliver well –
particularly for
people with complex
needs
• Local knowledge
and links can inform
specifications and
bidding process
• Support PbR but
consider cash flow
• Support early on in
the process is key
• Achievable within
the ESF
administration limits
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8. www.londoncouncils.gov.uk
2014-2020 ESIF Programme
• LEP strategic role presents opportunities
• Possible ways to achieving a more
diverse supply chain:
– Some upfront funding
– PbR, but with progression outcome payments
too
– Explore changes to procurement processes
– Geographical scope of contracts
– Better join-up between different ESF
programmes 8