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Redundancy Action Scheme (ReAct II)

ReAct logo.

The Redundancy Action Scheme (ReAct II) helps people affected by redundancy gain new skills and encourage recruiting employers to employ a redundant worker.

ReAct II for individuals

Who is eligible?

Support under the ReAct II scheme is available for individuals who:

  • have become unemployed in the last six months as a result of redundancy, are currently unemployed, and who have not been in continuous employment for 6 weeks or more since being made redundant 
  • are currently under notice of redundancy
  • have not undertaken any publicly funded training since being made redundant, including the work-based learning suite of programmes.

What is available?

There are 3 elements to ReAct II:

  • recruitment & training support
  • discretionary award - vocational training
  • discretionary award - extra support. 

Support is available for eligible applicants to increase their skills and remove barriers to learning, or returning to work. In order to ensure that this training provides the best possible chance of finding new employment, all applicants will need to have their training needs assessed by Careers Wales (external link). Careers Wales will also advise on suitable training courses and training venues.

Under this part of the scheme the following financial support is available:

  • 100 per cent of training costs to acquire new skills (up to a maximum of £1,500);
  • help with the cost of special equipment to remove barriers to training;
  • help towards the cost of travelling to training courses; 
  • overnight accommodation costs, where appropriate;
  • a contribution towards childcare costs whilst training (subject to limits and conditions).

ReAct II for employers

Recruiting?

Get two packages 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 instalments 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.

Who qualifies for the funding?

Employer Recruitment and Training Support is available to your business if the individual you wish to recruit is either under formal notice of redundancy or has become unemployed in the last six months as a result of redundancy. The individual must have been a resident in Wales at the time they first became eligible for ReAct II.

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.

Employer Recruitment and Training Support is available if:

  • your business is expanding and the post is new
  • you seek a justifiable replacement for a vacant post
  • uour business does not have a director in common with the company that made redundant the person you want to recruit
  • the job is at least 16 hours per week
  • the job is expected to last for at least 12 months
  • the job is not being supported by any other public or European Fund
  • your business has not reached the ‘de minimis’ threshold for State Aid rules.

Important note: Individuals who might otherwise have been eligible are disqualified for funding if they have:

  • started working for you before your application for ReAct II funding has been approved
  • received paid employment of any kind continuously for six weeks or more in the six months prior to applying for support
  • undertaken any publicly-funded training, including Work Based Learning programmes, since being made redundant.

Find out more

You can get more information on ReAct II from the ReAct Team in Swansea, from your local Careers Wales office or from Learning and Careers Advice on 0800 100 900.