New government guidance on EU spending in England from 2014 to 2020 is good news for charities, according to NCVO, because it confirms that at least 20 per cent of European Social Fund (ESF) money must be spent on ‘social inclusion’ work.

This amounts to around £500m over the six years.

The supplementary guidance for Local Enterprise Partnerships (LEPs), the 39 local bodies who will determine how certain European funds will be spent in England during the next funding round, also requires that the LEPs involve their local voluntary sector in setting spending priorities in their area.

Sir Stuart Etherington, NCVO’s chief executive, described the guidance as “major and meaningful wins for the voluntary sector”.

“The result of today’s announcements will be more European money reaching charities and the people we work with.”

European Structural and Investment Fund money must be matched by a domestic funder, in order to become available.

The Big Lottery Fund has intimated that it will offer match funding for local social inclusion projects, and the guidance also states that charities can include volunteering time in their calculations for match funding.

NCVO also said that aside from the ESF, the other major European fund, the European Regional Development Fund, may also provide opportunities for the sector. This money is intended for investment in sustainable capital development, and could be used for example to develop low-carbon retro-fitting of community buildings and social innovation start-ups.