082/22 Simplified Cost Option: ESF Direct Staff Cost Methodology 4 (fixed percentage)
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/08222-simplified-cost-option-esf-direct-staff-cost-methodology-4-fixed-percentage--2
| Date Issued | 27/05/2020 |
| Review Date | 31/012/2023 |
1. Who should read
All European Social Fund (ESF) beneficiary organisations (Direct Bid Grant Recipients and Co-Financing Organisations), the Greater London Authority and other Intermediate Bodies.
2. Purpose
This Action Note is to provide a reminder of the appropriate use of ESF Direct Staff Cost Methodology 4 (fixed percentage)
3. Background
On 1st July 2019, the ESF Managing Authority introduced a new Direct Staff Costs Simplified Cost Option methodology for individuals who work part of their time on an ESF Project and who work a fixed percentage of time on that ESF Project per month. This change was detailed in 2014-2020 ESF programme Action Note 038/19.
ESF Direct Staff Cost Methodology 4 (fixed percentage) allows a fixed rate percentage of actual gross employment costs per month to be claimed. It is not anticipated the rate should change month to month. The fixed rate percentage must be consistent with the percentage of time spent each month on the ESF Project and be verified by way of contractual documentation from the employer to the employee.
We have recently identified increasing instances where the ESF Direct Staff Cost Methodology 4 (fixed percentage) has been misinterpreted and the fixed flat rate percentage claimed has been changed, without prior approval from the ESF Managing Authority
4. Action
In instances where the fixed percentage rate (as agreed in the Staff Cost Master Sheet/Granular Budget) is no longer reflective of the percentage of time spent on the ESF Project, Grant Recipients should contact their Contract Manager to discuss a potential amendment or if an alternative Simplified Cost Option is more appropriate. Simplified Cost Option Guidance
5. Contact
For queries about this Action Note please email esf.2014-2020@dwp.gov.uk