Introduction and purpose of the document

What the rules cover and definitions of terms.

Introduction and purpose of the document

New for 1 August 2020

  • P5 to P8 - Clarification: To reflect Department for Education / Education and Skills Funding Agency organisational changes following the review of the Education and Skills Funding Agency.

  • P13.3 - Clarification: To reflect that the changes to rules on English and maths (detailed in paragraphs P135.1 and P139.1) will apply irrespective of the apprentice’s start date and will include existing learners who started their apprenticeship programme in previous funding years. Updated for version 1.

  • We have removed reference to the Apprenticeship Performance Management Rules as these are not applicable to new starts from 1 August 2022.

  • P17 - New rule: To reflect that organisations taking part in the portable flexi-job apprenticeships pilot must also refer to the supplemental funding rules for providers / employers delivering the portable flex-job apprenticeships pilot programme.

New for 30 September 2022 – Version 2

  • P13.4 - New rule: To reflect that prisoners are eligible to start apprenticeships from 30 September 2022.

  • P13.5 - New rule: To reflect that the rules on apprentices changing employers with a gap of employment of more than 30 days and up to 12 weeks (detailed in paragraphs P317 to P319), will apply irrespective of the apprentice’s start date and will include existing learners who started their apprenticeship programme in previous funding years.

P1

This document sets out the funding rules for main providers delivering apprenticeship training and on-programme assessment for employers under the apprenticeship programme from 1 August 2022.

P2

Main providers delivering to their own staff must follow the employer-provider rules and only claim actual costs.

P3

You can find details on the features of the apprenticeship funding system, including how we will calculate funding for organisations receiving funding from us, in the Apprenticeship Technical Funding Guide. You can also use the Provider Support Manual which provides additional guidance to support you to meet the requirements for Individualised Learner Record (ILR) data returns. The document includes detailed guidance and examples for completing the ILR for different types of learning provision and in different scenarios, in some cases worked examples relating to funding are provided.

P4

We use the term ‘you’ to refer to the ‘main provider’, that is, any organisation holding a funding agreement with us through which we directly route funds from an employer’s apprenticeship service account or government-employer 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.

P5

The terms ‘we’, ‘our’, ‘us’ and ‘ESFA’ refer to the Department for Education and / or the Education and Skills Funding Agency.

P6

These rules form part of your terms and conditions for the use of funds in an employer’s apprenticeship service account or for government-employer co-investment. You must read them in conjunction with your funding agreement with the Secretary of State for Education.

P7

We may make changes to these rules at any time.

P8

You must operate within the terms and conditions of your funding agreement, which includes these rules and the individualised learner record specification. If you do not, you will be in breach of your funding agreement with us.

P9

If you breach your funding agreement, we reserve the right to take action.

P10

We will review and monitor whether the training you provide represents good value for money. If we consider that the funds in an employer’s apprenticeship service account, or the government-employer co-investment we have provided, are significantly more than the cost of the education and training delivered, we may reduce the amount of funding we pay you or seek recovery of funding.

P11

We may take action including the recovery of all or part of the government funding from you if we are satisfied that there has been a breach of the funding rules. This includes where claims are made for funding through the employer’s apprenticeship service account, government co-investment or additional payments to which you and / or the employer are not entitled.

P12

You can contact us through our enquiry form. You can also contact your provider manager / adviser.

P13

These rules will apply to all apprenticeship programmes starting on or after 1 August 2022, with the following exceptions:

  • P13.1 The redundancy rules (detailed in paragraphs P275 to P276). These rules will apply irrespective of the apprentice’s start date and will include existing learners who started their apprenticeship programme in previous funding years.

  • P13.2 The rules on changing to a new version of a standard (detailed in paragraphs P286 to P299), which describe the rules for when an existing apprentice wishes to move to a new version of the same standard. These rules will apply irrespective of the apprentice’s start date and will include existing learners who started their apprenticeship programme in previous funding years.

  • P13.3 The rules on English and maths (detailed in paragraphs P135.1 and P139.1). These rules will apply irrespective of the apprentice’s start date and will include existing learners who started their apprenticeship programme in previous funding years.

  • P13.4 The rules on prisoner apprenticeships (detailed in paragraphs P71 to P72). Prisoners are eligible to start apprenticeships from 30 September 2022.

  • P13.5 The rules on apprentices changing employers with a gap of employment of more than 30 days and up to 12 weeks (detailed in paragraphs P317 to P319). These rules will apply irrespective of the apprentice’s start date and will include existing learners who started their apprenticeship programme in previous funding years.

P14

All new apprentices must start on an approved apprenticeship standard.

P15

All new apprentice starts with both levy and non-levy paying employers must be funded through the apprenticeship service. Employers who do not pay the levy can reserve funds using the apprenticeship service to access apprenticeship funding. More information on reservation of funds can be found paragraphs P228 to P242 of this document.

P16

Any apprenticeship which started before 1 August 2022 will continue to follow the rules in force at that time. These can be accessed on GOV.UK.

P17

If you are taking part in the portable flexi-job apprenticeships pilot, you must also refer to the supplemental funding rules for providers delivering the portable flexi-job apprenticeships pilot programme. We will provide these rules when you join the pilot programme.

P18

Some occupations require the training provider to be approved by a regulatory body before being able to deliver training for the apprenticeship. We may take action to recover apprenticeship funding where you have delivered training but do not have the necessary approval.

Relevant legislation

P19

These rules constitute funding conditions made under section 101 of the Apprenticeships, Skills, Children and Learning Act 2009 (ASCLA 2009), in connection with the Secretary of State’s power to fund English statutory apprenticeships under section 100(1A) (as inserted by the Enterprise Act 2016).

P20

These rules will make clear where necessary how they apply to English statutory apprenticeships taking place on apprenticeship standards.

Recruit an apprentice

New for 1 August 2022:

  • P21.2 - Clarification: We have confirmed that the employer can create their own advert or ask the main provider to do this on their behalf. Updated for version 1.

  • P21.3 - New rule: Whilst it is not mandatory for employers to use Recruit an apprentice, it is a condition of funding for all main providers to offer this service where applicable (e.g. for new recruits into a business). Where an employer has declined the use of Recruit an apprentice, you must record the reason for this in the evidence pack. We have confirmed that the information can be recorded at either learner or employer level and we have explained how we will use this information. Updated for version 1.

  • P21.4 - Clarification: We have confirmed that you do not need to offer Recruit an apprentice for existing members of staff (i.e. where there is no apprenticeship vacancy). Updated for version 1.

P21

You must offer the employer the option of using the free Recruit an apprentice service, for all new recruits into their business.

  • P21.1 Recruit an apprentice is the official government service for posting and managing apprenticeship vacancies (‘Find an apprenticeship’ is the corresponding candidate portal).

  • P21.2 The employer can either create their own apprenticeship advert or they can give you ‘recruitment permission’ to create an advert on their behalf.

  • P21.3 It is not mandatory for employers to use this service. However, where an employer does not use this service, you must record the reason for this; this can be recorded at either learner or employer level. We will ask for this information to be returned to us periodically and we will use this information, along with other employer survey data, to improve usage of the service.

  • P21.4 You do not need to offer Recruit an apprentice for existing members of staff (i.e. where there is no apprenticeship vacancy).

  • P21.5 Where you advertise a vacancy on Recruit an apprentice, on behalf of an employer, you must make it clear in the advert how many hours the apprentice will be expected to work per week for the role and how long the apprenticeship will last. This must meet the minimum duration requirements (see paragraphs P35 to P39).