Glossary
Definitions of terms.
New for 1 August 2022:
- New or updated definitions include: accelerated apprenticeships, active learning, degree apprenticeship, diagnostic assessment, double funding, employer agreement, final day, flexi-job apprenticeship agency, front-loaded training, insufficient progress towards training plan, mentoring, onboarding, skills-scan, subcontract, subcontractor, subcontracting.
Accelerated apprenticeship
An accelerated apprenticeship is where the apprentice’s planned duration is shorter (by at least 3 months) than the typical duration of the standard, based on prior learning. Minimum requirements of an apprenticeship must still be met, including the 12-month minimum duration and minimum volume of off-the-job training.
Account
See ‘Apprenticeship service account’
Active learning
Active learning refers to the training that is being funded through the apprenticeship (i.e. off-the-job training and English and maths training). The apprentice must be involved in active learning throughout the apprenticeship, from the learning start date to the learning end date (the practical period). Active learning must take place at least every 4 weeks to underpin the monthly payment made to a provider (or a break in learning must be used).
Additional learning support (ALS)
See ‘Learning support’
Additional payments
Extra funding to help with any additional costs of training specific groups of apprentices. The different types of additional payments are the 16 to 18 payment, the eligible 19 to 24 payment, learning support and the care leaver’s bursary.
Advanced learner loan
Loans for individuals aged 19+ to provide financial support towards tuition costs. These loans are paid directly to the college or training organisation. Not applicable to apprenticeships.
Annual leave
Paid time off work that employees are entitled to. For full time apprentices, this is at least 28 days per year (statutory leave entitlement). It is not a break in learning.
Apprentice
An individual who is doing an apprenticeship and engaged under an apprenticeship agreement (or alternative arrangement). Apprentices are employed. They work alongside experienced staff, gain job-specific skills, earn a wage, get holiday pay and time off for study related to their role.
Apprentice employment contract
See ‘Contract of service’
Apprentice rate
This is the minimum hourly rate apprentices are entitled to if they are either:
-
aged under 19
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19 and over and in their first year of an apprenticeship
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We encourage employers to pay more than the apprentice rate. View the National Minimum Wage rates.
Apprenticeship
A job with training. This includes the training and end-point assessment for an employee. The full definitions of an approved English apprenticeship (standards) can be found in Part 1 of the Apprenticeships, Skills, Children and Learning Act 2009.
Apprenticeship agreement
An apprenticeship agreement is between an employer and an apprentice, in accordance with the Apprenticeships, Skills, Children and Learning Act 2009 section A1.
Apprenticeship certificate
A certificate used to provide formal recognition that an individual has achieved their apprenticeship and is therefore certified.
Apprenticeship funding rules
View all apprenticeship funding rules.
Apprenticeship levy
A levy on UK employers to raise funds to pay for apprenticeship training and assessment. It is charged at 0.5% of an employer’s pay bill, but each employer receives an allowance of £15,000 to offset against their levy payment. Because of the allowance, only employers with an annual pay bill greater than £3m have to pay the levy. Levy payments are made monthly to HMRC.
Apprenticeship minimum wage
See ‘National Minimum Wage’
Apprenticeship service account
The area on the apprenticeship service where employers can manage their funding and apprentices, view their account balance and plan their spending.
See also ‘The apprenticeship service’
Apprenticeship training agency (ATA)
An organisation that recruits and employs apprentices on behalf of employers.
Assessment
See ‘End-point assessment’ or ‘On-programme assessment’
Block release
A concentrated period of time where the apprentice is training or studying at a place other than work as part of their apprenticeship. Block release may include training that is front-loaded at the beginning of the apprenticeship.
Break in learning
When an individual takes a break of at least 4 weeks from their apprenticeship but plans to return to it in the future. This could be linked to a break from work (e.g. illness, maternity leave, or parental leave) or the apprentice could still be working but has agreed with their employer and provider to take a break in their learning.
See also ‘Change of circumstances’
Care leaver
An individual aged 16 to 24 who was (or still is) in the care of their Local Authority.
Care leaver bursary
An additional £1000 payment that we pay to care leavers. This is paid via the apprentice’s training provider.
See also ‘Additional payments’
Certificates
Issued by awarding bodies to demonstrate an individual’s qualifications, for example Level 2 English and maths. During audits, we may check certificates for proof of prior learning.
See also ‘Prior learning’
Change of circumstance
Changes in an apprentice’s personal or employment circumstances, or to their apprenticeship.
There are different actions to take and effects on funding depending on the type of change.
Co-investment
See ‘Government co-investment’ or ‘Employer co-investment’
For apprenticeships that started on or after 1 April 2019, employers (who either do not pay the levy or levy payers who have run out of levy funds) pay 5% towards the cost of apprenticeship training. The government will pay the rest (95%) up to the funding band maximum.
Commitment
An internal term we use to describe an employer entering information in their apprenticeship service account.
Commitment statement
See ‘Training plan’
Complete early
When an apprentice completes all their training and assessment (including end-point assessment) before the planned end date recorded by the provider on the ILR. If the apprenticeship has met the minimum 12-month duration, we will pay any outstanding amounts once we have been notified of completion. View the Technical Funding Guide for details about how payments are made.
Completion payment
A payment we make to providers when an apprentice completes all their learning. This means taking the end-point assessment (the apprentice does not need to pass). This payment is 20% of either the total negotiated price or the funding band maximum, whichever is lower.
Contract for services
A contract between a contractor and a client (e.g. a provider and an employer).
Contract of service
A contract between an employee and employer.
Contribution
See ‘Co-investment’ or ‘Funding band’
DAS
See ‘The apprenticeship service’
Degree apprenticeship
A level 6 or 7 apprenticeship that mandates a full bachelor’s or master’s degree. The degree element can either be integrated or non-integrated into the apprenticeship. * An integrated degree apprenticeship has an end-point assessment which is integrated into the degree. There is no separate assessment. The Institute’s policy on Degree Apprenticeship Standards has more information about the different types of integration.
- A non-integrated degree apprenticeship features separate processes for the end-point assessment and the achievement of the degree element.
Delivery subcontractor
See ‘subcontractor’
Diagnostic testing / diagnostic assessment
A diagnostic assessment is a form of pre-assessment where tutors can evaluate strengths, weaknesses, knowledge and skills before their instruction. An identical assessment may be given post-instruction to identify if course learning objectives have been met.
Digital account
See ‘Apprenticeship service account’
Disability
See ‘Learning difficulty or disability (LDD)’
Dismissal
When an employee’s contract of employment is terminated.
Distance learning
Learning that is delivered remotely rather than face-to-face. For example, e-learning and webinars.
Double funding
Where multiple funding sources are used for the same activity. See ‘Individuals who are not eligible for funding’
Earnings adjustment statement (EAS)
The earnings adjustment statement is how main providers / employer-providers claim funding that cannot be claimed through the individualised learner record.
Education, health and care (EHC) plan
An education, health and care (EHC) plan is for children and young people aged up to 25 who need more support than is available through special educational needs support. EHC plans identify educational, health and social needs and set out the additional support to meet those needs.
Eligibility
This can refer to either learner eligibility or programme eligibility. In both cases the eligibility criteria must be met in order to access apprenticeship funding. Learner eligibility criteria includes age and the right to work in England. Programme eligibility criteria includes the amount of off-the-job training needed and the duration of training needed.
Eligible costs
Costs that directly relate to the delivery of training and on-programme assessment. Eligible costs make up the total negotiated price, which is paid for using funds from either an employer’s apprenticeship service account or government-employer co-investment.
Employee
An individual who has a contract of service. This does not include individuals who are self-employed.
Employer
An organisation that has a contract of service and an apprenticeship agreement with an apprentice. This can include an apprenticeship training agency (ATA) or Flexi-Job Apprenticeship Agency (FJAA). This may also include a company or charity whose PAYE scheme the employer has connected to their apprenticeship service account. References to an ‘employer’ describe the whole organisation, not individual sites, locations, groups, or companies linked by directors.
Employer agreement
Employers must accept this agreement to get or reserve apprenticeship funding. This agreement sets out the terms for use of the apprenticeship service by the employer and the obligations by which the employer agrees to be bound. It applies to all employers including those that pay the apprenticeship levy as well as those employers that do not pay the apprenticeship levy.
Employer co-investment
This is where employers share the cost of training and assessing apprentices with the government. The following types of employers will pay co-investment: non-levy payers and levy payers who have run out of levy funds,
Employer-provider
Any organisation who delivers some, or all, of the ‘off-the-job’ training element of an apprenticeship to their own staff and holds a contract with us through which we directly route funds from their apprenticeship service account or government-employer co-investment. The employer-provider will have overall responsibility for the training and on-programme assessment conducted by themselves, their delivery subcontractors and will have a contractual relationship for the end-point assessment conducted by an end-point assessment organisation. The payment for the end-point assessment is through the employer-provider.
End-point assessment (EPA)
An assessment that takes place at the end of an apprenticeship, to make sure apprentices have reached the necessary level of competence to be awarded an apprenticeship.
End-point assessment organisation (EPAO)
An independent organisation that employers can contract to carry out apprenticeship end-point assessments.
English and maths
Two separate qualifications that apprentices require to achieve an apprenticeship. There are different types of English and maths qualifications. For example, functional skills, GCSEs and entry-level.
Entry-level
See ‘English and maths’
Evidence pack
A collection of documents and information about an apprentice and their apprenticeship. It provides evidence that the apprentice exists, is eligible for funding and that the apprenticeship is being delivered in line with the funding rules.
Exceptional learning support (ELS)
An additional payment that providers can claim if the cost of supporting an apprentice’s learning support is £19,000 or more in a funding year. See also ‘Learning support’
Final day
Defined in legislation as the final day of the practical period. This is the equivalent of the learning end date on the ILR (there must be evidence of learning on this learning end date) and internally if also referred to as the “Gateway” between the practical period and the end-point assessment. The term Final day is used as a measure in the redundancy policy to determine if the apprentice will be fully funded to completion.
Flexi-Job Apprenticeship Agency (FJAA)
An organisation that recruits and employs apprentices on behalf of employers. FJAAs are targeted at sectors or professions where existing employment models present a structural barrier to the greater use of apprenticeships.
Front-loaded training
Where some off-the-job training is concentrated at the beginning of the apprenticeship. Note that where some off-the-job training is front-loaded, there must still be some delivery every 4 weeks to underpin the monthly payment made to providers.
Full time apprentice
An individual engaged on an apprenticeship programme who works 30 hours or more per week.
Functional skills
A type of English and maths qualification.
See also ‘English and maths’
Funding band
The financial range that the government will contribute towards the cost of delivering training and assessment for an apprenticeship standard. The range is between £0 and a defined funding band maximum. The maximum ranges from £1,500 to £27,000 and is the most that the government will contribute, including amounts that can be taken from a levy-paying employer’s apprenticeship service account. Currently, there are 30 funding bands. They do not include costs for English and maths or additional payments for young people.
Funding rules
See ‘Apprenticeship funding rules’
Gateway
See ‘Final day’
Gateway requirements
These are requirements set out in the assessment plan that must be met by the apprentice prior to undertaking end-point assessment of the apprenticeship standard. They will include the completion of English and maths qualifications (where applicable) and any on-programme mandatory qualifications (where applicable) along with satisfactory evidence (as determined by the employer, in consultation with the main provider) that the apprentice has achieved the necessary knowledge, skills and behaviours set out in the standard.
GCSE
See ‘English and maths’ or ‘Prior learning’
Government co-investment
This is where the government shares the cost of training and assessing apprentices with employers. The government will support the following types of employers: non-levy payers and levy payers who have run out of levy funds
Higher apprenticeships
An apprenticeship where the main learning is at level 4 or above. This is equivalent to a certificate of higher education or above.
Holiday
Host Employer
An organisation who hosts an apprentice on a placement which is organised by a Flexi-Job Apprenticeship Agency. Also known as ‘Hirers’
See ‘Annual leave’
Immigration permission
The permissions, or otherwise, granted by the government of the United Kingdom for an individual to reside here. Learners need immigration permission to study in the UK.
Individualised learner record (ILR)
The primary data collection requested from training providers for further education and work-based learning in England. The data is used widely, most notably by the government, to monitor policy implementation and the performance of the sector. It is also used by organisations that allocate funding for further education.
Individual learning plan (ILP)
See ‘Commitment statement’
Inducement
Something that persuades or influences someone to do something. For example, if a provider offered extra training (not required for the apprenticeship) to an employer and included this in the total negotiated price. This is not allowed.
Ineligible costs
Costs that must not be included in the total negotiated price. For example, apprentice travel costs and wages.
Initial assessment
The process of identifying an individual’s learning and support needs to enable the design of an individual training plan. It determines the learner’s starting point for their apprenticeship programme.
(The) Institute
The Institute of Apprenticeships and Technical Education
Integrated apprenticeship / standard
See ‘Degree apprenticeship”
Knowledge, skills and behaviours (KSBs)
These are set out in all apprenticeship standards; apprentices are required to learn them to be occupationally competent. KSBs are taught in off-the-job training and tested in the end-point assessment.
Learning actual end date
When learning towards the apprenticeship is complete. This can include off-the-job training and English and maths. There must be evidence of learning on this day.
Learning difficulty or disability (LDD)
An apprentice having a learning difficulty or disability may form part of a need’s assessment and if it directly impacts on their learning, they could be eligible for learning support.
See also ‘Learning support’
Learning gap
Where an apprentice has a gap in their learning or knowledge due to not having obtained certain skills or behaviours.
Learning planned end date
When learning towards the apprenticeship is planned to finish.
Learning start date
This is when learning, which is being funded by the apprenticeship budget, begins. It can include off-the-job training and English and maths. It does not include enrolment, initial assessment, or induction. There must be evidence of learning on this date.
Learning support
Financial support that providers can claim to help with the cost of any reasonable adjustments directly related to an apprenticeship. Currently a fixed monthly amount of £150. Any extra cost can be claimed through the Earnings Adjustment Statement (EAS). Learning support must only be used to support apprentices who have been assessed as having a learning disability or difficulty and is not to be used to address learning gaps.
See also ‘Additional payments’
Level 1
See ‘English and maths’ or ‘Functional skills’
Level 2
See ‘English and maths’ or ‘Functional skills’
Levy
See ‘Apprenticeship levy’
Levy-paying employer
An employer, or group of connected employers, with a collective annual pay bill of over £3 million who therefore pay the levy.
Main provider
Any organisation holding a contract with us through which we directly route funds from an employer’s apprenticeship service account or government co-investment. The main provider will have the overall responsibility for the training and on-programme assessment conducted by themselves and their delivery subcontractors and have a contractual relationship on behalf of the employer for the end-point assessment conducted by an end-point assessment organisation. The payment for the end-point assessment organisation is through the main provider.
Maternity leave
See ‘Parental leave’
Mentoring
To be included as off-the-job training, mentoring must meet the definition of off-the-job training (new learning, relevant to the apprenticeship, not English and maths, delivered within normal working hours) and be documented in the training plan. The mentor must be a more senior or experienced member of staff. This does not include general line management. The apprentice must not be doing productive work.
Minimum duration
The minimum length of time an apprentice must spend on training.
Minimum wage
See ‘National Minimum Wage’
National Minimum Wage
View the National Minimum Wage rates.
See also ‘Apprentice rate’
Non-integrated apprenticeship / standard
See ‘Degree apprenticeship’
Non-levy paying employer
An employer, or group of connected employers, with a collective annual pay bill of less than £3 million who therefore do not pay the apprenticeship levy.
Non-mandatory qualifications
Qualifications that an apprentice does not require to achieve an apprenticeship. We will pay for any training within a non-mandatory qualification that overlaps with the knowledge, skills and behaviour requirements of the apprenticeship standard. The employer must pay for any peripheral costs such as registration, examination and certification.
Normal Working hours
The apprentice’s paid hours, not including any overtime. There are maximum weekly working hours. Apprentices must complete their apprenticeship (including any training) during their normal working hours.
Off-the-job (OTJ) training
Defined as training which is delivering new skills, is relevant to the apprenticeship and is not English and maths, which is delivered in the apprentice’s normal working hours (but outside of their productive job role). From 1 August 2022, apprentices must spend at least 6 hours per week on off-the-job training; the volume delivered must be linked to the initial assessment of the apprentice and therefore may be more than 6 hours per week.
Onboarding (of the apprentice)
Following the initial assessment, onboarding of the apprentice will include developing, agreeing and signing any relevant paperwork to support the programme, such as the training plan and agreeing a price with the employer. Onboarding does not count towards off-the-job training.
Online learning
See ‘Distance learning’
On-programme assessment
Any assessment activity required as a result of mandatory qualifications. This is separate from the progress review, which discusses overall progress to date against the training plan.
On-the-job training
Learning done during an apprentice’s working hours to help them perform their job.
Ordinarily resident
For funding purposes, a person who normally lives in the country, is allowed to live there by law and return there after temporary trips outside the country. Temporary absences from a country due to the learner or a relevant family member working or travelling abroad would be discounted when considering ordinary residency.
OTJ
See ‘Off-the-job (OTJ) training’
Parental leave
When an employee takes time off work due to maternity leave, paternity leave, shared parental leave or adoption leave. Parental leave counts as a break in learning. See also ‘Break in learning’
Part time apprentice
An individual engaged on an apprenticeship programme who works less than 30 hours per week.
Paternity leave
See ‘Parental leave’
Pay bill
The total amount of money employers pay their employees each year.
Personal learning record (PLR)
The personal learning record (PLR) allows individual apprentices access to their past and current achievement records. These can be shared with schools, colleges, further education training providers, universities or employers when making an application to further their education, training and employment.
Planned learning end date
Then learning is planned to finish.
See ‘actual learning end date’
Practical period
The period for which the apprentice is expected to work and receive training under an approved English apprenticeship agreement. The start date and then end date of the practical period (as recorded on the apprenticeship agreement and training plan) must align with the learning start date and the learning end date on the ILR.
Pregnancy
See ‘Parental leave’
Previous apprenticeship
See ‘Prior learning’
Previous rules
There are different funding rules for different apprenticeship start dates. You must follow the funding rules that apply to each apprentice. View the funding rules for previous and other years.
Prior learning
Previous learning that may count towards an apprenticeship. For example, work experience, education, training and qualifications. Before a learner starts an apprenticeship, providers must do an initial assessment of their existing KSBs to check if they are eligible. Then reduce the cost, duration and content of the apprenticeship if necessary.
See also ‘Minimum duration’
Productive job role
The job for which the apprentice has been employed by the employer.
Progress review
A meeting of all parties (apprentice, employer and provider) to discuss the progress to date of the apprentice, against their training plan. Progress reviews must be carried out every 8-12 weeks.
Progression profiles
Progression Profiles, developed in conjunction with employers and published by the Institute, demonstrating progression routes from T-Levels - including into apprenticeships and accelerated apprenticeships.
Provider Agreement
A legally binding funding agreement between a provider and the Secretary of State. Providers must accept this agreement to manage apprenticeships on the apprenticeships service and receive funding from the Secretary of State.
Receiving employers
Employers (levy or non-levy paying) who receive a transfer of apprenticeship funds from a levy-paying employer.
See also ‘Transfer of funds’
Redundancy
The statutory definition of redundancy (Employment Rights Act 1996) identifies three sets of circumstances (business closure, workplace closure, diminished requirements of the business for employees to do work of a particular kind) and an employee’s dismissal can be considered to be by reason of redundancy if one of these circumstances is the reason for the dismissal.
Redundancy includes voluntary redundancy.
See also ‘Change of circumstance’
Register of Apprenticeship Training Providers (RoATP)
A list of organisations that are eligible to receive government funding to train apprentices. To be added to the register, organisations must pass tests on due diligence, financial health and tests on quality, capacity and capability.
Register of End-Point Assessment Organisations
A list of organisations that are eligible to carry out independent end-point assessments of apprentices.
Re-sit
Taking a mandatory qualification or the end-point assessment again, without any extra learning.
Retake
Taking the end-point assessment again, after further training.
Self-directed distance learning
When an apprentice is working alone with online material. The material is not delivered in real time and there is no interactive support.
Sending employers
Levy-paying employers who have unused apprenticeship funds in their apprenticeship service account and transfer them to another employer.
See also ‘Transfer of funds’
Skills scan
A skills scan is an assessment of the individual’s knowledge, skills and behaviours (KSBs), as they relate to the apprenticeship standard. We are not prescriptive as to what tool or method is used for the skills scan, but it must evaluate and document the extent to which the individual meets each KSB and therefore which elements of the standard do not need to be re-taught. The assessment should be validated as accurate by the individual’s line manager / employer.
Special educational needs (SEN)
Learning, physical, or sensory needs that make it harder for someone to learn than most individuals the same age.
Standards
An apprenticeship standard describes the occupation to which it relates and sets out the outcomes that persons seeking to achieve the standard are expected to attain in order to successfully complete the apprenticeship. Apprenticeship standards are approved and published by the Institute for Apprenticeships and Technical Education. Apprentices can only be enrolled against an apprenticeship standard once it is identified as ‘approved for delivery’ on the Institute for Apprenticeships and Technical Education website.
Subsidy control
Using taxpayer-funded resources to provide assistance to one or more organisations in a way that gives an advantage over others. For example, grants, loans and tax breaks and the rules which may apply under the scope of the UK - EU Trade and Cooperation Agreement (TCA).
Statutory leave
See ‘Annual leave’
Subcontract
An agreement entered into between the ESFA main provider and a subcontractor for the purposes of engaging the subcontractor to deliver part of the services on behalf of the main provider.
Subcontracting
Any delivery to an apprentice’s programme of learning by a separate legal entity. It does not matter if this is by a third party recruited to deliver on site (travel to teach), online learning or whether it is described as a service.
Subcontractor
A separate legal entity or an individual (not an employee) that has an agreement (called a subcontract) with you to deliver any element of the education and training we fund. A separate legal entity includes but is not limited to companies in your group, other associated companies and sole traders. An individual could include a person who is a sole trader, self-employed, a freelancer or someone who is employed by an agency, unless those individuals are working under your direct management and control in the same way as your own employees. This does not include relationships between the provider and the end-point assessment organisation or the provider and other third parties providing services such as marketing.
Summary of changes
See ‘Changes from the previous document’
The apprenticeship service
The digital interface to services designed to support the uptake of apprenticeships. The service is aimed primarily at employers who engage with main providers and apprenticeship assessment organisations to deliver and facilitate the apprenticeship programme. It allows employers to choose and pay for, the apprenticeship training that they want and will support the uptake of apprenticeships. The service contains information coming from a range of different sources, including main providers.
This document
This document refers to the Apprenticeship Funding Rules for Employers August 2022 to July 2023.
Time off
See ‘Annual leave’.
Total negotiated price (TNP)
The price negotiated between an employer and main provider for all the eligible costs of an apprentice’s training and assessment, after relevant prior learning has been taken into account.
See also ‘Eligible costs’ and ‘Ineligible costs’
Training
The delivery of training and on-programme assessment by a main provider or any organisation contracted for this purpose.
Training plan
The training plan sets out the training that has been identified through the initial assessment as required to complete the apprenticeship. The plan also outlines how the apprentice will be supported to successfully achieve the apprenticeship. It must be signed by the apprentice, their employer and the main provider and all parties must retain a current signed and dated version.
Training provider
Organisations that are on the Register of Apprenticeship Training Providers and appointed by an employer and / or holding a current funding agreement with us or contracted through a main provider for the delivery of training and on-programme assessment, as part of the employer’s agreed apprenticeship programme. This includes companies, charities, bodies, colleges, universities, sole traders and other types of legal entity, including those who are in the same group as, or are associated with, the main provider. This excludes individuals who are self-employed or supplied by an employment agency and who are working under the main provider’s direction and control, in the same way as an employee.
Transfer of funds
When levy-paying employers transfer any unused apprenticeship funds in their account to other employers.
Transfer to a new employer
See ‘Change of circumstances’
Transfer to a new provider
See ‘Change of circumstances’
Unique learner number (ULN)
A 10-digit reference number. You must use it to access or edit the personal learning record (PLR) of anyone that is in education or training and older than 14.
Wage
See ‘Apprentice rate’
Withdrawal
When an apprentice leaves or stops taking part in their apprenticeship before they have completed it. This could be temporary (i.e. a break in learning) and the apprenticeship can be restarted.
See also ‘Change of circumstances’
Work experience
The jobs that someone has had or the type of work they have done in the past. Also, when someone works for an employer on a short-term basis.
See also ‘Prior learning’
Working hours
See ’Normal working hours’
Written agreement
The main provider must have a written agreement in place with the end-point assessment organisation and make payment to them for conducting the end-point assessment. The written agreement must set out the arrangements for end-point assessment including arrangements for any retakes and the transaction of payments.
Zero-hour contracts
Contracts which do not specify a set number of hours for the employee to work.