6.0 Recruitment and training funding

To help your business succeed in this time of economic challenge, its vital employers invest in skills. Training increases productivity in the short term – and employers who don’t train are two times more likely to fail than those who do.

Research shows that three in four business people (76%) believe that their organisation would not succeed without investment in training.

6.1 Youth Contract, Work Programme wage subsidy – England and Wales

From April 2012, a wage subsidy payment of £2,275 will be available for small employers who employ a jobless 18-24 year old from the Work Programme for a period of six months. The subsidy will be paid to companies for taking on young unemployed people and is designed to cover costs like National Insurance contributions.

The wage subsidy payments will be open to all businesses, voluntary organisations and charities, it will be paid after the young person has been employed for 26 weeks for the majority of businesses.
Payments will be staggered for smaller enterprises, with the first payment after eight weeks and the rest after 26. This recognises that smaller businesses need a boost to their cash flow to make the jobs viable.

The wage subsidiary payment is also available for part time positions, with a rate of £1,137.50 if someone is employed between 16 and 29 hours.

Government aims to subsidise work placements and training for up to 160,000 young jobless over a three year period.

6.2 Apprenticeships – England and Wales

As Apprenticeships are work-based training programmes, most of the training is ‘on the job’ at your business. Apprenticeships are available to people of all ages and can be used to recruit new staff or train your existing workforce.

Funding

Funding from the Welsh Government, the National Apprenticeship Service and in some cases the European Social Fund, supports the cost of your apprentice’s training and assessment. This funding is paid directly to the organisation that provides and supports the Apprenticeship; in most cases this will be a learning provider.

The size of the contribution varies depending on your sector and the age of the candidate. If the apprentice is aged 16–18 years old, you will receive 100 per cent of the cost of the training; if they are 19-24 years old, you will receive up to 50 per cent; if they are 25 years old or over you may only get a contribution depending on the sector and area in which you operate.

National Minimum Wage

A National Minimum Wage for apprentices applies to all apprentices aged under 19; and apprentices aged 19 or over in the first year of their Apprenticeship. The apprentice minimum wage is currently £2.60 per hour and applies to time working, plus time spent training that is part of the Apprenticeship. Employers are free to pay above the new wage and many do so.

For more information visit:
http://www.apprenticeships.org.uk/About-Us/National-Apprenticeship-Service.aspx Welsh government url

6.3 Redundancy Action Scheme (ReAct) II – Wales

The Redundancy Action Scheme II (ReAct II) is a programme of funding for training provided by the Welsh Assembly Government for people living in Wales who are facing redundancy. The scheme also helps employers who are downsizing their business or are recruiting staff.

Employers get two packages of support funding for taking on someone who has been made redundant.

  • Employer Recruitment Support funds employers who recruit individuals made redundant in the past six months. The award offers up to £3,000 paid in four installments as a contribution towards wage costs.
  • Employer Training Support is a separate discretionary fund of up to £1,000 that an employer can put towards the cost of the new recruit’s job-related training.

Employers can choose whether to apply for Recruitment Support alone or Recruitment and Training Support. Employer Training Support can only be used in conjunction with Employer Recruitment Support. Employer Recruitment and Training Support is available to a business if the individual they wish to recruit is either under formal notice of redundancy or has become unemployed in the last six months as a result of redundancy.

Individuals working 25 hours per week or more will attract a full wage subsidy whilst those employed between 16 and 24 hours per week will receive a wage subsidy equal to 50% of the full time rate. No wage subsidy is payable for employees who work less than 16 hours per week.

6.4 The Workforce Development Fund for the adult social care sector – Wales

The Workforce Development Fund for 2011-2012 is a funding stream from the Department of Health disseminated by Skills for Care. It supports the on-going professional development of staff across the adult social care sector through vocational qualifications. It replaces what was previously called the Training Strategy Implementation Fund. The fund is distributed by Skills for Care via a network of organisations and employer led partnerships and focuses on the achievement of qualification units.

For more information visit: http://www.skillsforcare.org.uk/funding/funding.aspx

6.5 Young Recruits Programme – Wales

The Young Recruits Programme is an all Wales programme that provides financial support to employers offering high quality Apprenticeship programmes to recruit and train additional young apprentices (16-24 year olds).

Targeted support is available to create additional opportunities for young people to access quality Apprenticeship places. The programme can benefit employer of all sizes through a £50 per week wage subsidy paid to the employer.

6.6 Apprenticeship Grant for Employers of 16 to 24 year olds (AGE 16 to 24) – England

The AGE 16 to 24 is aimed at helping eligible employers to offer young people employment through Apprenticeship programmes, by providing wage grants to assist them in recruiting their first apprentice.

The National Apprenticeship Service will provide up to 40,000 Apprenticeship Grants with a value of £1,500, to encourage new employers to take on new 16 to 24 year old apprentices. Priority will be given to small-medium size employers with less than 50 employees, a further 20,000 employers with up to 250 employees who may be recruiting their first or additional apprentices will be supported.

The AGE 16 to 24 is available now until March 2013 for employers who are able to offer a job opportunity to a young person they recruit. Funding will start from 1 April 2012.

For more information visit: http://www.apprenticeships.org.uk/Employers/Steps-to-make-it-happen/Incentive.aspx

    The training TBG Learning offers ties in very well with our own pre-employment programme and they support their customers extremely well. We’re keen to work with the local community and the local workforce, to ensure the hotel is a valuable asset to the area.

    So far we’ve employed three new staff through TBG Learning and they’ve been fantastic additions to our team.

    Carly Whitcombe, Jurys Inn, Human Resources Manager

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