Cuts lead to job creation cuts

“As a result of the government’s May 24 2010 announcement on cross-government efficiency savings, ministers have decided that no further bids to the Future Jobs Fund will be approved for funding,” states the UK’s Future Job Fund website.

The Future Jobs Fund was created in 2009 and was meant to put 150,000 people back to work over a two year period.

So far the fund has issued grants for around 60,000 jobs.

On May 24, 2010, Chancellor George Osborne announced that as part of the £6.2 billion cuts to government spending the government would not be renewing its financial commitment to the Future Job Fund project.

It was not all bad news. The government also announced that it would honor all commitments that had already been made. Such as funds committed to the National Skills Academy for Sport that will create up to 3,000 jobs.

The pre-election budget by Alistair Darling had said that the Liberal government intended to extend the fund until March 2012.

The announcement of its cancelation fueled the fears of many in the third sector that the new coalition will not engage with civil society in the same way that the Liberal government had.

The fund

Clive Hirst, from Social Enterprise Solutions CIC, said: “The people being helped by the Future Jobs Fund aren’t just learning new skills but are growing in confidence, which will help enormously when they look for a permanent position.”

According to the organization, the fund of around £1 billion supported the creation of jobs for long term unemployed young people and others who face significant disadvantage in the labor market. 

The fund was open to organizations from all sectors including charities, social enterprises and the private enterprises, but specified that the work done should benefit local communities.