Northern Ireland NGOs fret as EU cash finally departs

The clock is ticking for Northern Ireland’s nonprofits.

Charities in the region are poised to lose millions in EU money next year as a result of Brexit, leading to warnings that their survival is on the line. These NGOs claim the British government’s replacement fund will leave a hole in their finances, potentially exacerbating social inequalities.

It’s an issue in the spotlight this week as U.S. President Joe Biden travels around the island to mark the 25th anniversary of the landmark Good Friday Agreement, which ended decades of violence between British unionists and Irish nationalists in the region. Top EU officials are also expected in Belfast next week for more ceremonies, according to multiple officials with knowledge of the plans.

At times, the celebrations have been overshadowed by the difficulties Northern Ireland is currently experiencing. This includes a political crisis that has left it without a functioning government and in an awkward position between the EU and the post-Brexit U.K. — essentially remaining part of the EU single market even though it is in the U.K.

Northern Ireland’s NGOs say they’re now caught up in those disputes. Historically, they have relied heavily on the so-called European Social Fund, a pot of EU cash aimed at creating jobs, especially in disadvantaged communities. But the region will be cut off from this budget in 2024 when new post-Brexit rules come into effect.

The U.K. government has vowed to replace this money, recently unveiling a two-year, £57 million fund meant to let Northern Ireland “take back control’’ from the EU.

But those about to lose out on EU cash warn that the amount does not cover their needs.

Gráinne Close, the director of Mencap in Northern Ireland, a charity for people with learning disabilities, told POLITICO that the EU’s social fund and the U.K. government’s so-called Shared Prosperity Fund “cover very different priorities." She accused Westminster of “breaking its promise to set up a replacement fund’’ after Brexit.

The U.K.’s new pot of money is aimed at bringing individuals back into the workforce, while EU funding focused on increasing social inclusion among marginalized groups.

“A large part of our participants would not be eligible under the new fund,’’ said Close.

Northern Ireland’s Equality Commissioner Geraldine McGahey also pointed a finger at Westminster, claiming “everything is done at the last minute," and arguing "there is no transparency in how this level of funding is being determined or indeed how the investment plan is being established.”

McGahey claimed that NGOs in Northern Ireland will lose £23 million per year starting in 2024, arguing that disadvantaged communities will bear the brunt.

The Women’s Centre in Derry, a group that promotes women’s equality and access to education and employment, claimed that the loss of EU cash has already led to staff layoffs.

The NGO wrote on Twitter: “We have had devastating news today that our ESF funding is not being replaced! This impacts the services in Derry for women and we also lose six skilled amazing staff members today! Disgrace!”

Close, the Mencap director, confirmed that “there will be a reduction [in our services], we’ll have to deliver in a different way.”

The EU’s social fund led to over 77,000 people in the region developing new work skills, including 11,000 who found a job, according to figures from Northern Ireland’s Department for the Economy. In total, the fund sent around €210 million to Northern Ireland under the 2014-2020 budget, while the U.K. government contributed €185 million for the same effort.

A European Commission spokesperson noted that after 2023, the EU will still offer Northern Ireland some funding through the so-called “PEACE PLUS programme,” which supports peace and reconciliation in the region.