Apprenticeship Funding in Wales
Everything you need to know about devolved Apprenticeship Funding in Wales, including an overview of the how the funding works, eligibility, and incentives for hiring apprentices.
Apprenticeships in Wales
Apprenticeships are a long-term investment in an employee and are great for boosting retention and supporting employees to upskill for new and emerging roles within your business.Apprenticeships in Wales are overseen by Medr, the Commission for Tertiary Education and Research.
Apprenticeship Funding in Wales
In Wales, apprenticeship funding is available through the Welsh Government, via the Barnett Formula.
Unlike in England, the Welsh model focuses on a fully-funded approach for all employers and sectors, rather than relying solely on the Growth and Skills Levy (formerly, the Apprenticeship Levy). However, as apprenticeship funding originates via the Barnett Formula, apprenticeship spaces in Wales are limited and available to employers on a first come first serve basis.
To maximise apprenticeship funding, employers should begin planning apprentice intakes in the Spring-Summer period to ensure that training providers are able to allocate the necessary resources to support workforce planning.
Levy-Paying Employers
If your annual pay bill exceeds £3 million, you pay the Apprenticeship Levy (0.5% of your payroll). However, in Wales, this money goes into a central pot, and you can access funding to train apprentices through contracted training providers. This means you are not limited to claiming the funds you’ve paid into the Levy.
Non-Levy Paying Employers
For Non-Levy paying businesses (typically SMEs), training costs for apprenticeships are fully-funded by the Welsh Government. You are responsible only for the apprentice’s wages and any equipment or travel costs.
Eligibility for Apprenticeships in Wales
To qualify for funding in Wales, the following criteria must be met:
- The Employer: Can be of any size or sector, provided they have a signed apprenticeship agreement and commitment to the learner’s duration.
- The Individual: Must be 16 or over, live or work in Wales at least 51% of the time, and not be in full-time education.
- The Role: The apprentice must be employed for at least 16 hours per week in a role that is directly relevant to their chosen apprenticeship framework.
Incentives for hiring an apprentice
Disabled Apprentice Incentive
Employers can receive £2,000 for each new disabled apprentice recruited (Levels 2–5). This is limited to 10 learners per business.
The Apprenticeship Employer Incentive Scheme (AEIS)
This incentive supports businesses that are either new to apprenticeships or haven’t recruited an apprentice in the last 30 months. The incentive is applicable for apprentices aged 16 to 19.
Employers are entitled to £3,500 per learner if recruited during peak windows (typically July–September and January–March. Alternatively, employers will receive £2,500 per learner if recruited at any other time of the year.
National Insurance (NI) Savings
You do not have to pay Class 1 Employer National Insurance contributions for any apprentice aged under 25, provided they earn less than the Upper Secondary Threshold (approx. £50,270 per year).
This can save a business roughly £1,000–£2,000 per year per apprentice, depending on their salary.
Jobs Growth Wales Plus
Jobs Growth Wales (JGW+) is a pre-apprenticeship programme, providing a critical pipeline of potential young apprentices, aged 16 to 19 who would otherwise be Not in Education, Employment or Training (NEET).
Welsh Government provides a wage subsidy (aligned with the National Minimum Wage for their age) for the first six months, allowing your organisation to trial a young person in a role before transitioning them into a full apprenticeship framework.
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