European Social Fund Plus

Introduction and Overview

The European Social Fund Plus (ESF+) is the European Union's primary financial instrument for investing in people for the 2021-2027 programming period. Established by Regulation (EU) 2021/1057, it aims to support Member States in achieving high employment levels, fair social protection, a skilled and resilient workforce, and inclusive societies. The ESF+ is a key tool for implementing the principles of the European Pillar of Social Rights.

The fund is structured into two main strands:

• The ESF+ strand under shared management: This constitutes the largest part of the budget and is managed jointly by the European Commission and EU Member States. National and regional authorities use these funds to finance operational programmes that address their specific social and employment challenges.
• The Employment and Social Innovation (EaSI) strand: This strand is managed directly or indirectly by the Commission and supports analytical activities, policy implementation, capacity building, and communication in the fields of employment and social affairs.

Evolution and Relation to Other Laws

The ESF+ for the 2021-2027 period represents a significant evolution from its predecessors. It merges several previously separate funds and programmes into a single, more integrated instrument:

• The European Social Fund (ESF)
• The Youth Employment Initiative (YEI)
• The Fund for European Aid to the Most Deprived (FEAD)
• The EU Programme for Employment and Social Innovation (EaSI)

This regulation repeals Regulation (EU) No 1296/2013 (which established the previous EaSI programme). It operates under the framework of the Common Provisions Regulation (EU) 2021/1060, which sets out common rules for most of the EU's shared management funds.

Since its adoption, the ESF+ has been amended to respond to emerging challenges, including provisions to support the Strategic Technologies for Europe Platform (STEP), alleviate the socio-economic consequences of natural disasters, and fund skills development in strategic sectors like defence, cybersecurity, and decarbonisation.

Main Goals and Objectives

The overarching goal of the ESF+ is to contribute to a more social and inclusive Europe. Its specific objectives, outlined in Article 4, include:

• Employment: Improving access to employment for all jobseekers, especially young people (through the Youth Guarantee), the long-term unemployed, and disadvantaged groups.
• Modernisation: Modernising labour market institutions and services.
• Equality: Promoting gender-balanced labour market participation, equal working conditions, and better work-life balance.
• Education & Skills: Improving the quality, inclusiveness, and labour market relevance of education and training systems, and promoting lifelong learning, upskilling, and reskilling.
• Social Inclusion: Fostering active inclusion, promoting equal opportunities, and improving the socio-economic integration of third-country nationals and marginalised communities like the Roma.
• Social Protection: Enhancing access to quality, sustainable, and affordable services (including healthcare, long-term care, and housing) and modernising social protection systems.
• Poverty Eradication: Promoting the social integration of people at risk of poverty and addressing material deprivation by providing food and/or basic material assistance to the most deprived persons.

Who It Applies To

The regulation primarily applies to EU Member States, which are responsible for programming and implementing the funds. The ultimate beneficiaries are a wide range of actors and individuals:

• Public bodies: National, regional, and local authorities, public employment services, and social security institutions.
• Organisations: Social partners (trade unions and employers' organisations), civil society organisations (NGOs), and educational and training institutions.
• Enterprises: Particularly micro, small, and medium-sized enterprises (SMEs) and social enterprises.
• Individuals: Jobseekers, employees, inactive people, young people not in employment, education or training (NEETs), children at risk of poverty, persons with disabilities, migrants, marginalised communities, and the most deprived persons.

Key Dates and Timeline

• Adopted: 24 June 2021
• Published in Official Journal: 30 June 2021
• Entered into Force: 01 July 2021
• Application Date: 01 January 2021 (for the 2021-2027 programming period)
• Last Updated: 18 September 2025 (via Regulation (EU) 2025/1913)

Key Provisions and Requirements

Thematic Concentration

To ensure funds are directed towards key EU priorities, Member States must dedicate minimum shares of their ESF+ resources to specific areas:

• Social Inclusion: At least 25% must be allocated to promoting social inclusion.
• Youth Employment: Member States with a high rate of NEETs must allocate at least 12.5% to support youth.
• Child Poverty: Member States with a high rate of child poverty must allocate at least 5% to targeted actions under the European Child Guarantee.
• Most Deprived: At least 3% must be dedicated to providing food and/or basic material assistance.

Partnership and Capacity Building

Member States must ensure the meaningful participation of social partners and civil society organisations in the delivery of ESF+ supported policies. A portion of the funds (at least 0.25% in some cases) must be allocated to building the capacity of these organisations.

Social Innovation

Member States are required to support social innovation and social experimentation, with the possibility of an increased co-financing rate (up to 95%) for priorities dedicated to these actions.

Respect for Fundamental Rights

All operations must be selected and implemented in full respect of the Charter of Fundamental Rights of the European Union.

Affected Products, Services, Actors, and Processes

• Actors: Public employment services, social and healthcare providers, educational institutions, NGOs, social enterprises, and public administrations at all levels.
• Services: Employment counselling, training and reskilling programmes, childcare services, long-term care, housing support, healthcare services, and food/material aid distribution.
• Processes: Labour market reforms, modernisation of education systems, development of social protection schemes, and implementation of social inclusion strategies.

Penalties and Enforcement

Enforcement is managed through the mechanisms outlined in the Common Provisions Regulation (EU) 2021/1060. This includes monitoring, reporting, and evaluation requirements. The Commission can apply financial corrections or suspend payments if a Member State fails to comply with the regulation's provisions, including in cases of infringement of the Charter of Fundamental Rights. There are also decommitment rules ('n+3') where allocated funds that are not spent within a certain timeframe are lost.