Threat to EU cash of larger projects

Large charities that run national projects helping disadvantaged people are facing a £20m funding loss under proposed changes to the distribution of European structural funds.

The Department for Work and Pensions, which is currently deciding how the funding stream for social projects will be administered over the next six years, has slashed a multi-million pound grants pool for national projects, from which charities such as CSV and the Prince's Trust received more than £20m between 2000 and 2006.

The DWP has proposed distributing all of the money regionally through statutory bodies such as Jobcentre Plus (Third Sector, 8 November 2006).

But charities say that some projects can only be funded nationally.

A spokesman for the DWP said regional distribution would "help those most disadvantaged in the labour market".

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Third Sector European Network

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