Other local authority activities: miscellaneous (F to M): Future Jobs Fund
The Future Jobs Fund (FJF) is an initiative launched in 2009 by the Department of Work and Pensions (DWP). It is designed to stimulate, through funding, the creation of community focussed jobs for groups identified as being worst hit by the recent economic downturn. These include school and college leavers and the long term unemployed in the 18-24 age group. For the purposes of the initiative a community focussed job is one which is of benefit to the wider community, especially those jobs connected with the regeneration of local communities,
The funding may be used to offset the overhead costs of creating a new community focussed post. This includes salaries and additional expenses such as administration and training costs. In some exceptional cases, with authorisation from the FJF, funding can be used to pay for tangible assets such as specially adapted computers for use by a disabled person.
Based on information supplied by the DWP it is understood that FJF funding generally follows a pattern under which:
- DWP distributes funding to national organisations such as Groundwork Trusts, Business Links, and Connexions, who act as lead organisations and pass the funding down to their own regional bodies. The lead organisation may retain a small proportion of the funding to cover their administrative costs.
- The regional body employs an unemployed person for a six month period using the FJF funding to offset salary costs. The body may also use the FJF funding to cover other approved expenses mentioned earlier.
- The regional body places the new employee free of charge within a:
- Community Interest Company, or
- not-for-profit organisation
which has created a qualifying FJF post.
The expectation is that at the end of the period of funded employment the employee will be offered a permanent post.
Based on this the funding is not seen to represent consideration for a taxable supply by either the regional body to the lead organisation, or from the lead organisation to the DWP. In addition, there is no supply of staff by the regional body in its placement of the staff because there is no consideration for the provision of the employee’s services.
Given the scope of the scheme, together with the range of parties involved, it is likely that, over time, variations will arise which will require further examination.