FAQ’s Explainer: Local Growth Fund & Impact on Northern Ireland

PLEASE HELP US PROTECT THOSE WHO NEED OUR SUPPORT

1. What is happening with funding in Northern Ireland from April 2026?

From April 2026, funding to tackle economic inactivity in Northern Ireland is set to fall sharply — from £25 million per year to £9.2 million, a 64% reduction.
This is due to the end of the UK Shared Prosperity Fund (UKSPF) and its replacement with the Local Growth Fund, which introduces a 70/30 split in favour of capital spending.

2. Why is this change causing concern?

The proposed funding model does not reflect Northern Ireland’s specific labour market and service needs, nor does it honour earlier commitments to take a bespoke approach for NI.
Organisations providing frontline employment and inclusion support rely heavily on revenue funding — which the new model drastically reduces.

3. Who currently delivers UKSPF‑funded services?

The Voluntary and Community Sector (VCS) plays a central role.

  • 15 out of 17 UKSPF-funded projects are delivered by VCS organisations.
  • 64 VCS organisations contribute to delivery across all projects.

4. What types of projects are at risk?

A range of programmes supporting skills, employment, youth engagement, women’s services, reintegration, and community development, including:

  • skillset NI (Action Mental Health Lead Partner)
  • Belfast Connect
  • GROW Partnership
  • Employ Me
  • Women Breaking Barriers NI
  • YouthStart
    …and several others.

5. How many staff and organisations will be affected?

Up to 650 staff — including 403 full‑time and 247 part‑time roles — are funded by UKSPF until March 2026.

64 VCS organisations could face severe cuts with some facing closure.

6. How many people rely on these services?

More than 11,000 beneficiaries per year, with the largest groups including:

  • People with disabilities
  • Those with long‑term health conditions
  • Carers
  • Women
  • Young people not in education, employment or training (NEET)

7. What will the immediate local impact be if the changes go ahead?

If the Local Growth Fund model is implemented as proposed, Northern Ireland will see:

  • Loss of 400+ specialist frontline jobs
  • Withdrawal of essential support services across all council areas
  • Collapse of trusted community‑based projects
  • Loss of help for thousands of people furthest from the labour market

8. Why is this considered a “false economy”?

Cutting preventative community services leads to:

  • Increased demand on health services
  • Higher pressure on public services
  • Reduced support for employers
  • Slower, less inclusive economic growth

9. Was the Voluntary and Community Sector consulted?

No.
There was no consultation, no published impact assessment, and organisations were notified late in the delivery year — days before Christmas.

10. Why is Northern Ireland particularly disadvantaged?

Several reasons:

  • NI has the highest economic inactivity rate in the UK (26.5%).
  • NI has the lowest employment rate for disabled people.
  • NI does not have access to alternative programmes available elsewhere in the UK (e.g., DWP Connect to Work).
  • A capital‑heavy model does not match NI’s needs — a point publicly acknowledged by the NI Minister of Finance.

11. What happens if urgent action is not taken?

Likely outcomes include:

  • Closure of proven, trusted support services
  • Loss of specialist staffing and community infrastructure
  • Deepening inequalities
  • Significant long‑term social and economic harm

12. What is NICVA asking MPs and Government to do?

NICVA is calling for three urgent actions:

  1. Reverse the Local Growth Fund model, which is not evidence‑based or NI‑appropriate.
  2. Protect existing services for 2026‑27 to prevent collapse of community infrastructure.
  3. Commit to a co‑designed, long‑term funding solution with the VCS, focused on revenue and evidence.

13. What’s the final message to Government?

Northern Ireland cannot afford to wait.
This is about safeguarding communities, sustaining local economies, and protecting some of the most vulnerable people across every constituency.
MPs have a crucial role in securing a fair, needs‑based outcome.

14. What you can do right now

ction Mental Health — alongside many VCS organisations — is urging people across Northern Ireland to take immediate steps to protect vital services and help stop the Local Growth Fund model from causing widespread harm. Here’s how you can take action today:

✔️ Sign and share our petition

Add your name to show clear public support for safeguarding essential community and employment services. Sharing it with others helps build momentum and shows decision‑makers the scale of concern.

✔️ Seal and send a letter to your local MP and MLAs

A personalised message from constituents carries weight.
You can:

  • Write your own letter, or
  • Use a pre‑prepared template provided by Action Mental Health or partner organisations.

Your elected representatives need to hear directly how these cuts will impact people and services in your community.

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