2 August 2018

Changes to funding rules for apprenticeships

Changes to funding rules for apprenticeships

There has been an update to the funding rules for apprenticeships.

The key changes are as follows:

– Some further clarification around off-the-job training which also includes an example of how the ESFA expect this to be calculated - this discounts any period of annual leave including bank holidays, so in reality, 20% is now in reality at least 22-23%, with any training for maths and English on top. As you will know it is already difficult to persuade many employers to engage in the programme at the minimum requirement so once they see the details of this, the task will be even harder and we continue to lobby for the much-needed flexibility here.

– Apprentices not being asked to contribute to the direct cost of an apprenticeship includes where they have left or completed the programme.

– Employer delivery is allowed through a subcontract, but clear message is that it must be at cost.

– Updated eligible and ineligible costs.

– Levy transfer - one area not particularly well publicised is from May "employers who pay the apprenticeship levy will be able to fund apprenticeships in one other organisation through a transfer." We understand that this restriction of transferring to only one rather than multiple employers is a short-term restriction and hopefully from the new academic year it will be relaxed. Small detail, but important when supporting and helping your levy payers plan for their spending.

– The apprenticeship rate of pay is only applicable once an individual starts their apprenticeship programme and not before.
There is no longer a need for further learning in order to retake a mandatory qualification or an end point assessment but if required the cost of additional learning can be included.

– The apprentice must still be employed until the end point assessment is completed (unless redundancy applies).

– Confirmation that levy transfers are subject to state aid regulations.

For more information on funding and apprenticeships click here.