27 January 2020

How to access Apprenticeship Funding

Apprenticeship funding

Employers can access Apprenticeship funding from the Government via the Education and Skills Funding Agency (ESFA). The amount of funding received will depend on whether you pay the apprenticeship levy or not. As of the 1 April 2019, non-levy paying companies must pay 5% of the cost of training and assessing each apprentice, whilst the ESFA funds the remaining 95%.

BPIF can offer flexible payment schedules to support your company with payments. You may also be eligible for extra funding depending on the company and the apprentice's circumstances.

What is the Apprenticeship Levy?

In 2017 the Government introduced a new Apprenticeship Levy.  Employers with a wage bill of £3m or more pay 0.5% to HMRC which is then used to pay for the delivery of apprenticeship programmes in England.

Once the levy has been paid employers can access funding for apprenticeships through an online account. However, the funds expire after 24 months if they have not been spent by the employer.

What's changing?

The ESFA will be moving away from the use of Government-procured contracts for apprenticeship training to a system in which employers will select an apprenticeship standard, choose their training provider and secure access to funding for all new apprenticeships through the digital apprenticeship service (DAS). The intention is to give smaller employers greater control over their apprenticeship choices.

From January 2020 employers who do not pay the apprenticeship levy will be able to create accounts on the digital apprenticeship service and begin arranging their own apprenticeships.

These employers will be able to:

• Choose from a range of apprenticeship standards;
• Link their DAS account to BPIF to deliver apprenticeship training;
• Find an End-Point Assessment Organisation (EPAO);
• Reserve access to funding for apprenticeship training and assessment;
• Agree contracts with your training provider (BPIF); and
• Benefit from collaborative relationships by delegating permissions to your training provider (BPIF) to service your accounts. This means we can take care of the admin.

The ESFA will be managing carefully the transition from contracted training provision to a system in which all new apprenticeship starts are arranged by employers via the apprenticeship service. Until autumn 2020 employers who do not pay the apprenticeship levy will be able to access apprenticeship training either through a provider with an existing Government contract or via the apprenticeship service. By autumn 2020 it is intended that all new apprenticeship starts to be arranged through the digital apprenticeship service.

Reservation of funds

From January 2020 employers who do not pay the apprenticeship levy will be able to reserve funding for an apprenticeship in advance of recruitment or an offer of an apprenticeship being made to an existing employee. This reservation ensures that employers can plan, and that funds will be available to pay for the training from the point the apprenticeship starts. The employer must then turn this 'reservation' into a 'commitment' once you have confirmed your Apprentice with BPIF. At this point funding can be released in the usual way.

Initially the following constraints will apply:

• Employers can reserve funding for apprenticeship standards only;
• Employers may make reservations for up to three apprenticeship starts.

The restrictions above do not eliminate you from undertaking an Apprenticeship framework or more than 3 apprenticeship starts, but are designed to support the ESFA forecast, monitor and manage apprenticeship funding at the start of this new process. Please speak to us directly and we will support you with any training requirements you may have.

How can I reserve funding?

Employers who do not pay the apprenticeship levy will be able to create accounts on the apprenticeship service from January 2020. Once employers have set up their account and accepted the employer agreement, they can reserve funds.

Once a reservation has been made it can be converted into a full apprenticeship record, or a commitment, by adding the chosen apprentice's details and being agreed by both the employer and provider.

Useful Links

Everything you need to know about BPIF Apprenticeships

https://www.britishprint.com/training-development/apprenticeships/ 

How to register and use the apprenticeship service as an employer

https://www.gov.uk/guidance/manage-apprenticeship-funds

How apprenticeship funding for employers will work, including details of funding bands and the apprenticeship levy.

https://www.gov.uk/government/publications/apprenticeship-funding

Apprenticeship funding rules

https://www.gov.uk/guidance/apprenticeship-funding-rules 

ESFA Apprenticeship Agreement for Employers

https://www.gov.uk/government/publications/agreement-between-an-employer-and-the-education-and-skills-funding-agency-esfa

ESFA YouTube channel with guidance on using the Apprenticeship Service

https://www.youtube.com/channel/UCROOCs9OvIwqFOy5_E0Jtfg