A Welsh Government-funded programme to help people most disadvantaged in the labour market into work will be expanded in 2023 but a minister warned of "tough decisions" ahead.
Economy Minister, Vaughan Gething said the Government is stepping in to fund the expansion of the Communities for Work Plus (CfW+) employability programme. They said they made the move after claiming the UK Government had failed to honour promises Wales would not be a penny worse off following the UK departure from the EU.
The Department for Levelling Up insisted that it was delivering on the UK government’s commitment to match the average spending of EU structural funds - although the equivalent level of EU funding will not be reached until 2025.
Under the EU Structural and Investment Funds, the Welsh Government invested funds in a range of schemes led by the public, HE/FE, third and private sectors, including those to help people into work.
Two of those schemes are Communities for Work (CfW) and Parents, Childcare and Employment (PaCE). Since 2015, £135m has been invested in the schemes which have, to date, provided intensive community-based employment support and training to 41,000 individuals with complex barriers. Over 17,500 of these individuals have been helped into employment.
Welsh Government says over five years Wales will be around £1bn worse off in structural funds compared to what it would have received from the EU.
Ministers said this meant they needed to make difficult decisions about how budgets are spent.
In response, the Minister has today confirmed the Welsh Government is stepping in to fund the expansion of the Wales-wide CfW+ programme from April 2023. The expansion will see a doubling of its original £12m annual budget.
The CfW+ programme has been hugely successful, having already provided intensive employment support and training to over 30,000 individuals with complex barriers to employment, with over 13,000 being helped into employment.
The Minister also announced the Welsh Government has secured an extension of the delivery of the EU-funded CfW and PaCE to 31 March 2023 to ensure a smooth transition to the enhanced CfW+ programme.
Economy Minister, Vaughan Gething said: “Despite the promise made by the UK Government that Wales would not be worse off from the UK leaving the EU, the reality is we are facing a loss of more than £1 billion in un-replaced funding. The Welsh Government cannot fill the massive hole the UK Government has created in the Welsh budget, which means we and our Welsh partners - who have previously benefited from EU funding - will need to take tough decisions on what to fund in future.
“This Welsh Government is determined to help people into and remain in good quality jobs. That’s why we’re taking action to fund a new Wales-wide programme to support people to do just that. By funding this expansion of Communities for Work + and focussing on people who are under-represented in the labour market and those who face disadvantage and inequity in accessing work, we will create a more equal Wales - a society that enables people to fulfil their potential no matter what their background or circumstances.
“While UK Ministers talk about “levelling up” the UK, it’s this Welsh Government that’s delivering for people across Wales by funding transformative programmes that help to change their lives for the better.”
UK Government has defended its Shared Prosperity Fund which is replacing EU funding.
Secretary of State for Levelling Up Michael Gove said: “We have taken back control of our money from the EU and we are empowering those who know their communities in Wales best to deliver on their priorities. The UK SPF will help to unleash the creativity and talent of communities that have for too long been overlooked and undervalued. By allocating more than half a billion pounds for communities up and down Wales, we will help to spread opportunity, increase prosperity and level up every corner of the UK.”
