[Withdrawn] 051/20 Temporary Framework for State Aid for COVID-19 responses
Updated 29 February 2024
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This publication is available at https://www.gov.uk/government/publications/esf-action-notes-2014-to-2020-programme/05120-temporary-easement-to-state-aid-de-minimis-level
The information in this Action Note is out of date and should not be used. This Action Note was withdrawn on 25 September 2023 and is published here for information only.
| Updated | 02 February 2021 |
| Review Date | 30 June 2021 |
Who should read
This Action Note is to all ESF beneficiary organisations using State Aid, and the Greater London Authority
Purpose
To advise of a revised end date for the Temporary Framework for State Aid offered by the European Commission as an easement / response to the COVID-19 emergency. The position as previously set out by the ESF Managing Authority that the Temporary Framework is not applicable to the ESF Programme is not affected by the end date being revised.
Background
The European Commission has adopted a series of flexibilities under CRII/ CRII+, including the Temporary Framework for State Aid in response to the current COVID-19 emergency. This is a temporary de minimis level only flexibility which initially expired on 31 December 2020 but has been extended to 30 June 2021 by the European Commission.
Question 23 of the published ESF COVID-19 Q & A has been amended to reflect the revised end date for the Temporary Framework.
This updated ESF Action Note 051/20 published on 02 February 2021 sets out the Managing Authority’s decision following the review.
Action
Grant recipients are asked to note that the Managing Authority has concluded that the terms of the Temporary Framework for State Aid adopted by the European Commission for COVID-19 responses are not applicable to the England ESF programme. The reasons for this decision are outlined below:
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the de minimis exemption limit is the same as it was prior to the Coronavirus flexibilities being introduced, and remains at EUR 200,000 over a 3 year rolling period
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there is a new threshold for expenditure of up to EUR800,000 aimed at remedying the liquidity shortage faced by undertakings and ensuring that disruptions caused by the COVID-19 outbreak did not undermine their viability
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the ESF Managing Authority does not directly support companies, instead the focus of the programme is on supporting skills and therefore it is not appropriate to use ESF to support company liquidity as envisaged in the Framework.
Grant recipients are also asked to note that the adoption of the Temporary Framework is not a signal that the Commission has suspended or relaxed wider State aid rules due to the COVID-19 outbreak.
Contact
If you have any questions about this Action Note please contact: esf.2014-2020@dwp.gov.uk