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Business support case study: ProAct (Welsh Assembly Government)

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This page has been archived because it is no longer current information but is still relevant, or it is current but over 12 months old
  • Publish date: 24 June 2010
  • Archived on: 10 February 2014

ProAct is an innovative, Welsh-born programme that was announced by the Welsh Assembly Government in the Third All Wales Economic Summit in December 2008. ProAct is a counter recessionary measure aimed at supporting Welsh businesses affected by the economic downturn.

How does ProAct support enterprise?

  1. ProAct is a financial support package that is designed to help viable businesses in Wales to cope with the downturn by using quiet periods to upskill employees. ProAct offers funding for training during the down-time and a wages subsidy whilst training is undertaken.
  2. ProAct aims to enhance skills in the labour market. It provides employees with access to accredited training to help to increase their employability.
  3. This scheme helps to prevent redundancies.

How successful is ProAct?

  1. 1. At the time of writing:
  • ProAct has committed over £25.6 million. 
  • The scheme has received 418 applications, 410 of which have been reviewed by the scheme's panel. 
  • Offers of ProAct support have been received by 223 companies - totalling 273 ProAct Training Plans - which have benefited over 10,027 workers. 
  • In addition, 65 businesses are currently drawing up training plans.

Public policy lessons to draw

  1. ProAct highlights the value of training and upskilling workforces, especially in a difficult economic climate. The initiative demonstrates that public sector-funded initiatives can support economic activity by promoting skills development.
  2. ProAct's flexible structure means that ProAct Training Plans are put together on a business by business basis and, thus, accommodate employers' specific needs. Employers have access to an expert adviser who will help to put together a bespoke training plan once they have presented a convincing business case to the ProAct Panel.
  3. ProAct is a strong example of how a public sector funded scheme can raise awareness of, and increase access to, training and upskilling providers.

Additional summary of ProAct

Available support

ProAct is flexible but broadly offers:

  • Up to £2,000 per individual towards training costs
  • A wage subsidy of up to £2,000 per individual whilst the training is undertaken. This is a rate of £50 a day
  • Free, one-to-one expert advice to help create a ProAct Training Plan

Eligibility

ProAct is available to private or third sector organisations that:

  • Were inherently viable prior to the onset of the recession and can demonstrate a convincing business case for ProAct support
  • Have introduced, or plan to introduce, short-term working at a minimum level of 20% for approximately 40 days - the equivalent of one day a week
  • Due to reduction in productivity, have made or are considering redundancies and have introduced short-term working to avoid redundancies
  • Under 'de minimis' rules have not received European Funding of more than €200,000 over the past three years