A flagship employment scheme is facing a severe funding cut due to changes announced this week in the way the working neighbourhoods fund (WNF) is calculated. Brent was chosen as a beacon council for its pioneering approach to worklessness in the London borough via the Brentin2Work scheme, but the initiative could be in jeopardy if the shake-up goes ahead. DCLG this week said it planned to tighten up the third eligibility criteria for WNF to ensure it is targeted where it is needed most. The changes could also signal a shift in emphasis, from worklessness back to unemployment. WNF will now be based on new population data from the 2007 census, which is measured against the employment rate. Revised data will ensure the most up to date information is used and will widen the range of councils which now qualify.Those councils entitled to full funding will receive extra money and two councils currently receiving transitional funds – Enfield and Lewisham – will now receive full funding. However, two authorities – Brent and West Somerset – will no longer be eligible. Andy Donald, assistant director of regeneration at Brent Council, said: ‘Our ratio of employed people is now too high. We have deep concentrations of worklessness but we now just miss out on the fund. Our regeneration is predicated on employment. We spend £3-4m each year on employment.’ The changes will not affect funding for the 2008-9 period, but will come into force in 2009-10. Brent will see its WNF fall from £2.8m to £1.4m in 2009-10, while its third year funding – almost £3m – will be cut to just £500,000.

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6 November 2008
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