Adult apprenticeship subsidy scheme

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Name of the instrument - Local language
Voksenlęrlingeordningen
Name of the instrument - English translation
Adult apprenticeship subsidy scheme
Scheme ID
61
Country
Denmark
Reporting year
2020
Type of instrument
Grant for companies
Sub-type of instrument
Support for direct costs and wage costs
Type of entry
Single instrument
Short description

Employers providing apprenticeships to either unemployed persons or unskilled workers and who are approved to have apprentices can apply for the grant. A subsidy (financed by the state) to cover part of the hourly wage of an adult apprentice amounts to DKK 30 or DKK 45 (approx. EUR 4 or EUR 6) (depending on whether the adult is employed and considering the length of unemployment). The adult apprenticeship subsidy is funded by the state. The company may receive subsidies up to DKK 1 500 000 (approx. EUR 200 725) over a 3-year period. Although the formal vocational education leading to a qualification is eligible, however, only a list of education and training programmes with high demand or a lack of qualified workforce is eligible (which changes according to labour market and skills needs). Companies can apply on annual basis.

Not applicable
Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Key instrument
Beskęftigelsesindsatsloven ("Act on Employment Measures")
Objective(s) and target(s)
To ensure that the skills and qualifications of the vocational workforce are continuously raised to a higher level. The scheme has both an employment and educational purpose. It will give adults a better opportunity to acquire vocational training and ensure the unskilled a better foothold in the labour market.
Year of implementation
1997
Operation/management
Danish Agency for Labour Market and Recruitment (under the Ministry of Employment) is the government body with the overall responsibility. Local job centres at the municipal level manage the scheme.
Eligible group(s)
All employers who are legally allowed to employ apprentices from the group of adults are eligible for support. The subsidy is provided for unemployed unskilled workers, unemployed workers with outdated skills, unemployed works with more than 6 months of unemployment, employed unskilled workers and employed workers with outdated skills. Furthermore, there is a list of education and training programmes that are eligible (the list changes according to labour market and skills needs).
Group(s) with preferential treatment
No
Education and training eligible
Formal vocational education that leads to a qualification, however only a list of educations with a high demand or a lack of qualified workforce are availabe.
Source of financing and collection mechanism
The adult apprenticeship subsidy is funded by the state. Amendments of the scheme will be based on political agreements and reforms, the last one from 2020 were between the government and supporting partners.
Financing formula and allocation mechanisms
Subsidy to cover part of the hourly wage of an adult apprentice through the training period: DKK 45 hourly subsidy for unemployed unskilled workers and unemployed workers with outdated skills, as well as unemployed works with more than 6 months of unemployment. The subsidy will be given the whole training period. DKK 30 hourly subsidy will be given to employed unskilled workers and employed workers with outdated skills for up to two years of training.
Eligible costs
Wage costs of the apprentices hired
Volumes of funding
In 2019: DKK 286 200 000 (EUR 38 305 561) were available in the fund.
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
Danish Agency for Labour Market and Recruitment (Agency under the Ministry of Employment). External evaluations are put out to tender.
Monitoring/evaluation reports available
Deloitte (2019) "Mapping of who gets education in the employment system": https://star.dk/media/10900/grundanalyse-kortlaegning-af-hvem-der-faar-…
Recent changes

Recent changes in response to COVID-19

17-06-2020, in light of the covid-19 crisis a new political agreement was introduced. The parties behind the agreement were the parties to introduce the Employment Reform in 2014. The new agreement broadened the eligible groups for the adult apprenticeship subsidy. Both employed workers with outdated skills and skilled workers with more than three months of unemployment got access to the scheme. The new rules were to be tested from August 2020 to 31.12.2021

Sources
https://www.ft.dk/samling/20161/almdel/BEU/bilag/198/1749418.pdf
https://www.ft.dk/samling/20072/almdel/udu/spm/302/svar/589721/625408.p…
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