Apprenticeship funding rules for main providers

1 Apprenticeship funding rules for main providers August 2020 to July 2021. Version 5. This document sets out the funding rules for all main providers delivering apprenticeships from 1 August 2020 to 31 July 2021. View other Apprenticeship funding rules April 2021. Of interest to colleges, independent training providers , higher education institutions and employers delivering training to staff outside of their organisation. 0. Contents Introduction and purpose of the document .. 4. Relevant legislation .. 6. Recruit an apprentice .. 6. Programme eligibility .. 7. What is an Apprenticeship ? .. 7. Apprenticeship agreement (between the employer and the apprentice).

2 8. Alternative English Apprenticeship .. 9. Apprentice wages .. 10. Minimum duration and employment hours .. 10. Off-the-job training .. 12. Flow chart: What to check if the actual duration and off-the-job training delivered is less than the original planned duration and volume of off-the-job training .. 17. Recognition of prior learning and experience .. 17. The commitment statement between the employer, apprentice and main provider .. 18. Who can be funded? .. 20. Individuals who are not eligible for funding .. 22. Apprentices who need access to learning support .. 23. Apprentices who need access to exceptional learning support (ELS).

3 24. Apprenticeship training agency (ATA) .. 24. What can be funded? .. 25. Eligible 25. Ineligible costs .. 27. Additional payments .. 29. Care leavers bursary .. 31. Extra support for small employers .. 32. Support for English and maths training .. 33. Flow chart: find out if an apprentice needs to do functional skills English and maths .. 40. End-point assessments .. 41. Contracting and 43. Main providers directly delivering training or on-programme assessment .. 43. Agreeing the use of subcontractors with employers .. 43. Your written agreement with each 45. Delivery of Apprenticeship training and on-programme assessment by delivery subcontractors.

4 46. Contracting with delivery subcontractors .. 47. Special conditions for subcontracting to employer- providers .. 48. Special conditions for subcontracting to supporting providers .. 48. Special conditions for all instances where the employer is the delivery subcontractor .. 48. 1. Reporting your use of delivery subcontractors to us .. 49. Disputes and issue resolution between the employer and main provider .. 49. Paying for an Apprenticeship .. 49. The price of an Apprenticeship .. 49. When payments are 50. Value added tax (VAT) .. 51. Funds in an employer's Apprenticeship service account (levy paying employers).

5 51. Employer co-investment .. 52. Reservation of funds by non-levy employers .. 53. Qualifying days for funding .. 55. State aid .. 55. Apprenticeships funded by transfers of levy funds .. 56. Introduction for main providers .. 56. Delivering Apprenticeship training to receiving employers .. 57. Delivering the Apprenticeship .. 57. Data protection .. 57. 58. Change of circumstance .. 58. Where training or assessment stops .. 60. Redundancy .. 61. Flow chart: What to check in the case of redundancy .. 65. Maternity, Adoption and Shared Parental Leave .. 66. Flow chart: Find out what to do if your apprentice wants to take a break in learning.

6 69. Summary of action following change of circumstance .. 70. ESF (European Social Fund) match funding requirements .. 78. Evidence requirements .. 80. Evidence pack .. 80. Introduction .. 80. Programme eligibility (including Apprenticeship agreement, alternative English apprenticeships, wages, minimum duration and employment hours, off-the-job training, recognition of prior learning and experience and commitment statement) .. 80. Who can be funded (including learner eligibility and learning support) .. 84. What can be funded (including eligible and ineligible costs, additional payments, support for small employers, and English and maths).

7 86. Paying for an Apprenticeship .. 88. 89. End-point assessment .. 89. Change of Circumstances .. 89. Confirmation and signatures .. 91. 2. Individualised learner record (ILR) .. 92. Self-declarations .. 92. Annex A: Eligibility criteria (who we fund) .. 93. Residency eligibility .. 93. EEA citizens .. 93. Non-EEA citizens .. 94. Individuals with certain types of immigration status and their family members .. 94. Asylum seekers .. 95. Family members of EU and EEA nationals .. 95. Children of Turkish workers .. 96. Persons granted stateless 96. Those in the armed forces or outside of England .. 97. Further information for 16 to 18-year-olds.

8 97. Countries or areas where residency establishes eligibility for our funding .. 98. Glossary .. 101. 0-9 .. 101. A .. 102. B .. 103. C .. 104. D .. 105. E .. 106. F .. 108. G .. 108. H .. 109. I .. 109. K .. 110. L .. 110. M .. 111. N .. 112. O .. 112. P .. 113. R .. 114. S .. 114. T .. 115. U .. 117. W .. 117. Z .. 117. 3. Introduction and purpose of the document New for 1 August 2020. We recognise that apprentices, employers, main providers and end-point assessment organisations continue to be affected by the impact of coronavirus (COVID-19). The temporary flexibilities that we are making to the Apprenticeship programme during the coronavirus (COVID-19) outbreak are set out in the latest guidance which can be accessed on the page under providing apprenticeships during the coronavirus (COVID-19) outbreak.

9 P3 - New content: We have added a link to the new 20/21 provider Support Manual. P14 - New rule: From 1 August 2020, all new apprentices must start on Apprenticeship standards. Existing learners on Apprenticeship frameworks will still be able to complete their framework providing they started on or before 31 July 2020. For operational reasons, it is our intention that these learners complete their Apprenticeship framework by 31 July 2025. (accounting for any breaks in learning). Updated October 2020. P13 - New rule: To clarify that the 2020/21 funding rules apply to all Apprenticeship programmes starting on or after 1 August 2020, with the exception of the new redundancy arrangements described in P306 to P307 which will apply to all redundancies that occur on or after 15 October 2020, irrespective of the apprentice's start date.

10 Updated March 2021. - New rule: To reflect the Functional Skills Qualifications temporary flexibilities rules outlined in paragraphs P160 to P170, which describe the temporary arrangements for eligible apprentices to take their end-point assessments before achieving their functional skills qualifications. These rules apply to all active apprentices, irrespective of their Apprenticeship programme start date which may be in a previous funding year. Updated April 2021. P15 - New rule: To reflect that from 1 April 2021, all new apprentice starts with both levy and non-levy paying employers must be funded through the Apprenticeship service.