05 February 2008 – Publication of DWP research report 473: effectiveness of ESF objective 3 global grants in increasing the employability of the most disadvantaged

New research published today by the Department for Work and Pensions presents important evidence on the effectiveness of European Social Fund (ESF) Objective 3 Global Grants in moving disadvantaged individuals closer to the labour market.

Global Grants are small grants, of up to £10,000, provided to non-governmental organisations that would otherwise be unable to access mainstream ESF funding. Global Grants are administered by Intermediate Bodies who distribute funding to local organisations and community groups for projects to help disadvantaged people move closer to the labour market.

The report presents valuable findings from a survey of Global Grant beneficiaries, supplemented by interviews with key stakeholders including staff and volunteers from Global Grants projects. The evidence from this report has been used in the design and development of ESF Community Grants within the 2007 – 2013 England ESF Programme.

The main findings are:

• The majority of beneficiaries who were surveyed had improved their employability. Three quarters had gained new skills and nearly half had gained a qualification. Nearly 90% had improved their confidence, motivation and self-esteem.
• Global Grants have increased beneficiaries’ employment prospects. Almost half of participants (47 per cent) who were no longer engaged on a Global Grants project were in work at the time of the survey, compared with 26 per cent prior to participation. Eleven per cent said that they had been helped into work as a result of their participation in Global Grants. There was a corresponding decrease in the number of inactive and registered unemployed beneficiaries after Global Grants.
• Global Grants are effective in engaging and supporting the most disadvantaged individuals from ‘harder to help’ groups. Prior to involvement in Global Grants half of beneficiaries were economically inactive and a quarter were registered unemployed.
• Global Grants beneficiaries faced several labour market disadvantages. A third had an illness or disability, a sixth had problems with basic skills, a further sixth had caring responsibilities and nearly a tenth had English as a second language. A smaller number had drug/alcohol problems or a criminal record.
• The success of Global Grants is associated with specific programme design features, such as delivery by small community and voluntary groups. The quality of engagement and support offered by community and voluntary groups has impacted positively on outcomes.

Notes to Editors

1. The research report 473 – The effectiveness of ESF Global Grants in increasing the employability of the most disadvantaged is published on 5th February 2008.  The report is available on the DWP website http://research.dwp.gov.uk/asd/asd5/rrs2008.asp
2. The research is based on findings from a telephone survey of 500 Global Grant beneficiaries. There were a further 60 face to face interviews with more vulnerable individuals and nine case studies of active Global Grants projects.  The case studies comprised face to face interviews with project participants, volunteers, project staff and Intermediate Body representatives; and face to face interviews with four direct recipients of Global Grants funding.

DWP Press office: 020 3267 5144
Out of hours: 07659 108 883
Prepared by: the Department for Work and Pensions Jobseekers Division