BIG Lottery Fund
Grant to Hafal
State aid reference no: xxxx/xxx
1. Member State
United Kingdom
2. Region
England
3. Title of Aid Scheme
Hafal
4. UK legal basis
The powers of the BIG Lottery Fund to grant public funds under this scheme are
contained in the following legislation:
National Lottery Act 1993 (as amended in 2006)
http://www.legislation.gov.uk/ukpga/1993/39/contents
5. EC legal basis
All aid provided under this Scheme will be within the limits set out in Articles 15 and
Articles 41 of Commission Regulation (EC) 800/2008 (General Block Exemption
Regulation)1
Summary information relating to the Scheme has been registered with the Commission
under reference XXXX/XXXX
6. Definitions
In this Scheme, the following expressions have the meanings assigned below:
“SME” means an enterprise that falls within the criteria and parameters of the
definition of micro, small and medium-sized enterprises contained in the
Commission Recommendation of 6 May 2003 concerning the definition of micro,
small and medium-sized enterprises (2003/361/EC), which took effect on 1
January 20052
1
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:214:0003:0047:EN:PDF
http://europa.eu/eur-lex/pri/en/oj/dat/2003/l_124/l_12420030520en00360041.pdf
See also the New SME Definition User Guide and Model Declaration
http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/sme_user_guide.pdf
2
“Large enterprise” means any enterprise that is not an SME
“Eligible costs” in relation to Article 15 of the General Block Exemption Regulation
shall be the costs of investment in tangible or intangible assets.
“Eligible costs” in relation to Article 41 of the General Block Exemption Regulation
shall be the wage costs over any given period during which the disabled worker is being
employed.
7. Objective of the Scheme
The aim of the Scheme is to allow the BIG Lottery Fund to provide a singular grant to
support phases 1 and 2 of Hafal’s developmental phase for a user-led care facility for
people with serious mental illnesses.
The current model of public and private sector mental hospital is not recovery-focused.
While new models of care are beginning to be explored in the provision of services
within the community (e.g. by voluntary sector organisations), modern ideas of recovery
have simply not penetrated the hospital setting where there is commonly an emphasis
on medication and psychiatry, and a lack of empowerment of the service user. In
practice Hafal has found that where clients are empowered, and where a holistic
approach is used, recovery is far more likely and outcomes for the patient are greatly
improved. People in hospital inevitably need a lot of support, but there are important
areas of life where they can make choices and take action – for example in developing
social contact, looking after their health and acquiring skills. Service users can take
charge of their recovery – and can lead the service they receive.
Furthermore, Hafal provided evidence that suggests that user-led services are often
more successful because service users can identify with those providing the service.
The findings of a US study reported in the American Journal of Community Psychology
(Aug 2008) suggest that not only are the costs of peer-managed residential programmes
lower than conventional psychiatric hospitals, but that patients of these programmes
achieve better health than their counterparts in traditional institutions.
The main evidence of the need for the service has come from Hafal Members – people
with serious mental illness and their carers. As a user-led charity, Hafal has run a
number of highly successful user-led services. In 2008 and 2010 Hafal consulted with
their clients and Members across Wales at a national conference and during a
consultation campaign, asking them what they want from future services. A clear
message from this consultation was that Hafal should realise its ambitions and develop
its most progressive and potentially most effective recovery service by establishing a
peer-led hospital.
The hospital will support both the Big Lottery’s programme outcomes:
1. New solutions are delivered which better address emerging and entrenched social
problems
The proposed hospital addresses a very specific social problem with a new solution.
People who experience serious mental illness have a considerably lessened life span,
greatly reduced chances of employment and a generally lower quality of life. Those who
are not empowered to recover in hospital can spend extended periods in an anti-
therapeutic environment. Such patients can become institutionalised and dependent,
and this can have a hugely detrimental effect on their lives. Many Hafal Members have
had very negative experiences in hospital.
The aim of the new hospital is to provide a positive experience and to ensure that
patients’ stays in hospital are as brief and beneficial as possible. The aim of the hospital
is to deliver an innovative, recovery-focused programme of care and support which
empowers patients to take control of their illness and provides them with the tools they
need to continue to move forward once they leave the service.
2. Learning from innovative approaches is used to inform wider policy and practice
One of the key outcomes of the new hospital service will be a radical new model of
service-user-led care. This model will be benchmarked and used to inform wider policy
and practice.
The Scheme will align with the policy objectives of the BIG Lottery Fund and will, within
the GBER rules for SME Investment Aid and Aid for the employment of disabled people;Hafal has allocated capital from existing reserves for the purchase of the property. The
requested Phase 1 funding will cover a contribution to the development of the project,
paying for the wages of a Development Officer and asset investment costs to deliver the
vision.
Phase 2 will cover part of the start-up costs of staffing for the first year of the hospital’s
operation. The staff hired will be ex-service users with previous significant mental health
issues. This period of funding will enable the service to become established and reach
profitability and sustainability. Hafal has identified this model as one which would provide
long-term security for the charity as any surplus from the hospital will support Hafal’s
existing mission.
8. Government body authorised to implement the Scheme
The BIG Lottery Fund
9. Scope of the Scheme
The scheme will go directly to Hafal.
10. Duration of the Scheme
The General Block Exemption Regulation funded budget over the period 01/02/2013 to
01/02/2014 is €217271.14 which will be met from BIG Lottery Funding. Of this funding,
€62019.35 is made under Article 15 of the General Block Exemption Regulation (GBER)
SME Investment and Employment Aid. The balance of the remaining 90% of eligible
costs will be met by Hafal from their own budget and not from any other state sources.
An additional €155251.79 is made under Article 41 of the General Block Exemption
Regulation (GBER); Aid for the employment of disabled workers in form of wage
subsidies. The balance of the remaining 25% of eligible costs will be met by Hafal from
their own budget and not from any other state sources.
11. Form of aid
All aid awarded under the Scheme will be transparent and in line with criteria set out in
Articles 15 and 41 of the General Block Exemption Regulation.
12. Eligible costs
Under the award made under Article 15 of the General Block Exemption Regulation, the
eligible costs shall be the costs of investment in tangible or intangible assets.
Under the award made under Article 41 of the General Block Exemption Regulation, the
eligible costs shall be the wage costs over any given period during which the disabled
worker is being employed.
13. Aid intensities
The aid intensity of funding awarded under Article 15 shall not exceed 10% of eligible
costs.
The aid intensity of funding awarded under Article 41 shall not exceed 75% of eligible
costs.
14. Incentive effect
Aid recipients must demonstrate that the aid is required for projects to proceed.
Funding will not be awarded where the activity has already started before an application
for support is made.
15. Cumulation
Aid provided under this Scheme will not be cumulated with other forms of aid nor with
aid classed as de minimis aid3 in regard to the same eligible costs if the result would
breach the aid intensities set out above.
16. Budget
The total expenditure on the project will be £1081524 between 01/02/2013 to
01/02/2015. Of this overall sum the BIG Lottery Fund will contributing £181059.28 under
GBER Articles 15 and 41.
17. Monitoring and reporting requirements
All recipients of aid under the Scheme will be informed that aid has been provided under
the Scheme, registered under X792/2009, pursuant to Articles 15 & 41 of Commission
Regulation (EC) No 800/2008 (General Block Exemption Regulation).
Records will be kept for 10 years from the date of the last award of aid under the
Scheme. Records will be sufficiently detailed to establish that the conditions of the
Scheme are met.
Contact information:
Legal Team
BIG Lottery Fund
1 Plough Place
London EC4A 1DE
United Kingdom
Tel: + 44 (0) 207 211 1800
Fax: +44 (0) 207 211 1750
3
Aid fulfilling the conditions laid down in Commission Regulation (EC) No 1998/2006 on the application
of Articles 87 and 88 of the Treaty to de minimis aid.
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:379:0005:0010:EN:PDF