Charities that rely on European structural funding to run social projects are facing a delay of up to nine months before the next round of seven-year funding kicks in.
Charities such as CSV will have to find alternative support after it emerged that the 2007-2013 programme would not start as expected on 1 January 2007.
The delay was caused by extended negotiations at a European level to decide how the funding would be split now that there are 25 countries in the European Union.
The sector is trying to negotiate gap funding but, according to Sandra Turner, director of the Third Sector European Network, nothing has been secured.
Previously, charities that received money from the European Social Fund, one of the structural funding streams, were able to backdate claims if there was a delay in the money arriving. However, the sector is yet to receive guarantees that this will apply under the new programme, on which the Department for Work and Pensions is consulting.
Changes to the way the funds are distributed may mean projects helping the socially excluded might not even have their funding renewed (Third Sector, 8 November).