Welsh Government launches financial incentive for employers hiring new apprentices

The Welsh Government has launched a £40 million skills and jobs fund to encourage and support employers in creating new training, apprenticeship and employment opportunities throughout Wales.

In a bid to create 6,000 new apprenticeship roles, businesses may be eligible to an incentive payment of up to £3,000 for each new apprentice hired. The incentives will run from 1st of August 2020 to 28th of February 2021 and will help businesses to develop and maintain a skilled workforce.

There are different incentives available to employers, depending on the learner’s age and hours of employment. There are also incentives for employers who recruit disabled applicants or apprentices who were made redundant from their previous apprenticeship opportunity.

Could you and your business be eligible?

The incentive is available to employers who hire a new apprentice that:

• Meets the Apprenticeship eligibility criteria as set out in the latest Work Based Learning Programme Specification;
• is directly employed as an Apprentice;
• is employed at least 16 hours a week and not on a zero-hour contract;
• has not been previously employed by the employer or a connected company within 6 months prior to the new employment contract start date. However, apprentices who were previously employed by the employer (but not currently employed) in a part time role (i.e. under 16 hours p/w) or temporary role, will be eligible but only where the apprenticeship contract of employment is for at least 30 hours;
• has a contract of employment start date and an apprenticeship learning agreement start date between 1 August 2020 and 28 February 2021

What are the incentive payments?

The incentive for employing 16-24 year olds

• £3,000 for each new apprentice recruited aged under 25 where the contract of employment is a minimum of 30 hours per week.
• £1,500 for each new apprentice recruited aged under 25 where the contract of employment is between 16-29 hours per week.

The incentive for employing apprentices aged 25 and over

• £2,000 for each new apprentice recruited aged 25 and over where the contract of employment is for at least 30 hours per week.
• £1,000 for each new apprentice recruited aged 25 and over where the contract of employment is under 30 hours per week.

Payments are limited to a maximum of ten apprentices per employer.
Employers must be able to commit to employing the apprentice for the length of time required to complete the apprenticeship framework.

The incentive for the re-employment of redundant apprentices

• £2,600 for the re-employment of redundant apprentices, where the contract of employment is for at least 30 hours per week.
• £1,300 for the re-employment of redundant apprentices, where the contract of employment is between 16-29 hours per week.

Apprentices must have been made redundant from a previous Apprenticeship programme/role between 23/03/2020 and 28/02/2021.
The incentive for employing redundant apprentices applies to all redundant apprentices irrespective of age.
The apprentice must continue to follow the same Apprenticeship Framework Pathway that they were made redundant from.

The incentive for employing applicants with a disability

• Employers who recruit an apprentice with a disability would be eligible to receive an additional £1,500.

Payments apply to all apprentices identified as disabled irrespective of age.
The apprentice’s disability must be identified at the point of recruitment and the employer must be aware of the disability before making the decision to recruit. 

Interested? Get in touch!

If you would like to find out more about the incentives available for hiring an apprentice, or simply interested in knowing more about the training and apprenticeship routes we offer, get in touch with our business development team today.

Call 029 2046 4727, email info@acttraining.org.uk or fill in our online form.