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Vital services provided by third sector organisations (TSOs), supporting vulnerable people to access jobs and training in Northern Ireland, face a ‘cliff edge’ next March unless Government funding is renewed, with around 800 jobs already lost, academics at Â鶹ƵµÀ have concluded.

In their latest report on the replacement of the European Social Fund with the UK Shared Prosperity Fund (UKSPF) following the UK’s withdrawal from the European Union, Dr Peter Butler, Professor Jonathan Payne and Dr Jonathan Rose found that many organisations have had to close.

Unlike other parts of the UK, UKSPF funds for employability services in Northern Ireland were allocated directly by central government rather than being devolved to local authorities. While some providers interviewed gave praise to the civil servants overseeing the fund, the fact that funding was only allocated on the day that European funding ended was a major problem. This meant that employees in some organisations were moments away from being handed redundancy notices when contracts were awarded. The organisations will face a similar scenario from March 31st 2025 when UKSPF ends unless clarity is given soon as to whether this funding will be extended or replaced with other sources.

Interviewees in the report noted that UKSPF funding is only around half that of the old European funding, with many jobs already having been lost across the sector, which has inevitable consequences for the number of clients being supported and the quality of that support. The problem is especially stark given the broader Northern Ireland context which has very high levels of economic inactivity.

Dr Butler said, ‘The findings are very timely given the change in government and the funding challenges third sector organisations are facing following the loss of European funding.’

He added, ‘The report makes some important recommendations for policy makers. Not least, there is a need for immediate action to avoid another funding cliff edge. More specifically, any future solution needs to involve ring-fenced, multi-year funding for employment support in Northern Ireland and the rest of the UK. This is vital both for the recruitment and retention of key support workers and for vulnerable users with complex needs who need long-term support.’

The report can be read here: NI report.

For more information on the project contact Peter Butler: pabutler@dmu.ac.uk