This move is to ensure this fund is targeted where it is needed most and means all councils eligible for full WNF after this revision will receive extra funding.
Changes announced today follow concerns about the data used to construct the third eligibility criterion for receiving WNF – that councils should be among the top 40 with the highest combined rate of unemployment and benefit claims. The deadline for responses is 9 January 2009.
Further information about the consultation
When it was launched last year the WNF was widely welcomed by councils and communities as a valuable contribution to help them develop more concentrated, concerted, community-led approaches to getting people in the most deprived areas back to work.
The Government is proposing that revised data, the most up to date and consistent available, will be used so resources are targeted at those councils currently experiencing the highest levels of worklessness. We also propose to widen the range at which councils qualify for funding using this data in order to minimise change and ensure the number of areas that benefit from the fund remains the same (65).
This proposed change will provide clarity and greater certainty around which areas are eligible for funding and will ensure regeneration funding is targeted to the most deprived areas. Eligible councils have been waiting for confirmation of funding for 2009-10 and 2010-11.
Allocations made for 2008-09 are unaffected. The proposals will affect allocations for 2009/10 and 2010/11 with all councils entitled to full WNF following the revision receiving an increase on funding announced in December last year. Two councils, Enfield and Lewisham, currently receiving transitional funding will receive full WNF funding if the proposal is accepted. Brent and West Somerset Councils, currently receiving WNF are no longer eligible for full funding but will receive extended transitional funding.
Local Government Minister John Healey said "We are determined to break the cycle between worklessness and the lack of economic growth in certain parts of the country. That's why last year we announced a new £1.5 billion fund for councils to work with local community organisations to get people back to work. I have been impressed by the commitment to use this money to make a real difference in their communities.
"Our aim has always been to target this money where it is needed most in the fairest and most transparent way possible. This remains the case. That is why when it became clear that some of the data used was not as reliable and up to date as it should have been we took action.
"The proposals I am announcing today will mean all those councils who are eligible for full funding will receive extra money over the next two years with two new areas now eligible for full funding. With the new data two areas no longer qualify for funding but to ensure they can continue their work to tackle persistent unemployment we have said Government will provide them with extended transitional funding for the next two years.
"It was right for Government to take action to deal with concerns and end uncertainty over this fund. This clarity means councils can now get on with the job of supporting their local economies by helping to get more people into work."
