New provider masterclass

Returning ILR data for Apprenticeships from May 2017

The ILR Individualised learner record Data about learners and their learning Most ILR data is information that organisations record as part of their own business processes Full details of what data is required are published in the ILR specification: https://www.gov.uk/government/collections/individualised-learner-record-ilr Learner – name, date of birth, contact details etc. Learning – learning aims, start date, planned end date, outcome Updated throughout the year and when learning ends As part of your funding agreement, you are required to return ILR data ILR = individualised learner record On-going collection of data in a standard format about learners and their learning journey, for example apprentices on an apprenticeship programme. The data is updated throughout the year The ILR records a learner’s status when they first enrol with a training provider, what learning they do, whether they successfully complete the course, and whether they progress onto further learning. Data in the ILR is largely either about the learner, for example details such as date of birth, unique learner number, and employment status; or about their learning, which includes details about the aims they are doing, when they start, the planned end of the course, and the outcome.

Why is ILR data important? For training providers ILR data is used for: Calculating funding earned Audit and financial assurance For the government ILR data is used to: Ensure effective use of public money Monitor quality and performance Monitor equality and diversity Monitor the impact of skills funding on learners and the economy Support future planning ILR data has 3 major uses: to calculate government funding earned by training providers for training they have delivered, for national statistics and to measure success The data from the ILR feeds into the funding calculation and is used for monitoring, reporting, modelling and audit purposes The ILR provides an auditable record of what public funds have been claimed and for what purpose Each year the government decides what the priorities for the year are, for example the priority at the moment is apprenticeships, so data needs to be collected to monitor how well this priority is being met, this is done using ILR data

File submission to the Hub The ILR Process Data held in your MI system Data exported in XML format Data submitted to the Hub ILR files regularly uploaded to the Hub Processing Validation Funding calculation What if I don’t have an MI system? ILR Learner Entry Tool Provider MI system File submission to the Hub Data validation Funding calculations You hold the required data in a system such as a management information (MI) system. From this, ILR data is produced in XML (extensible mark-up language) format and sent to us electronically on a regular basis. The ILR data collection timetable (sometimes called “appendix A”) sets out what data you must return and when. For apprenticeships from 1 May 2017, you must make monthly ILR returns in order for funding to be calculated accurately. You submit your files to us via the Hub Once submitted, files are processed. The first stage of this is data validation. Because the ILR is used for funding and auditing purposes, it is important that the data you submit is accurate and that the learners are eligible for funding. Any discrepancies may lead to funding being clawed back. Validation is used to reduce discrepancies by enforcing data quality and data integrity, checking that you have a funding contract, and in some cases validation is also used to enforce funding rules (for example, ensuring that a learner is old enough to start an apprenticeship programme). Only data that passes validation is then passed on to the funding calculation. Any data that fails validation stops being processed. Reports indicating validation errors can be found on the Hub. If you don’t have a MI system and only have a few learners then you can use the Learner Entry tool. This is a free piece of software that we (SFA) produce. This is available to download from the Hub, a user guide and other documentation is available on gov.uk via the ILR webpage. The tool allows you to enter learner data and export an ILR file in XML format for submission to the Hub. The tool does not hold any other data and cannot export anything except an ILR file. It is not a management information system.

The Hub The Hub is a secure, online portal Submit files Reports Contract information You will need to register for an account for the Hub The ILR data collection timetable contains the deadlines for when you must load files to the Hub Returned monthly You will need to start making ILR returns once the apprentices have started No data means no funding The Hub is our secure, online portal to collect data files and share reports and contract information with you You will need to register for an account for the Hub, if you are the first user to register for your organisation then you will need to contact the Service Centre so that they can approve your account. This first account will be the super-user for your organisation. The super-user is responsible for approving all future access requests. ILR Appendix A contains the timetable of submission deadlines for when you must submit ILR data to the Hub. Each deadline is called a return and is assigned a number (R01 to R14). You must return all apprenticeship data monthly. Not returning data will have an impact on your funding. When you make your first ILR return will depend on when you have your funding contract in place, the apprentices have started on their programme, and you have access to the Hub. Once you have everything in place, you should make an ILR return by the next submission deadline as detailed in Appendix A. You should start making ILR returns as soon as you have all of the relevant information available. You cannot earn any funding unless you return ILR data.

Funding information system (FIS) & validation reports FIS is a downloadable application that can check your ILR data before you upload it to the Hub https://www.gov.uk/government/publications/individualised-learner-record-ilr-check-that-data-is-accurate FIS and the Hub produce rule violation reports The reports tell you about any errors and contain details to help you identify the affected learner and how to correct the error One of the best ways to check your data is to submit it to the Hub and check your validation reports. Alternatively, you can check if it meets the validation requirements off-line by running the file through the Funding information system (FIS). This software is available to download via the Hub and allows you to run the majority of ILR validation checks prior to submitting a file to the SFA. Some validation checks that require external reference datasets such as contract data are not available in FIS

Apprenticeship service The apprenticeship service holds details about apprentices for levy paying employers The service allows levy paying employers to create a digital account to pay for apprenticeship training using funds from their apprenticeship levy ILR data is checked against data held on the apprenticeship system Monthly funding payments are only made when key details in both data sources match If you are working with levy paying employer you will also need to access the apprenticeship service. The apprenticeship service allows levy paying employers to create a digital account and use it to pay for apprenticeship training using funds from their apprenticeship levy. The service holds details of apprentices Each month, we (the SFA) will compare the details in your ILR for apprentices employed by levy paying employers to the apprentice details in the apprenticeship service. If the details match then a monthly funding payment will be made. If the data does not match, a report is produced with details about the error. ILR data that fails the data match continues to be processed, unlike if it fails validation, however no payments will be generated. This check is not run for apprentices who are employed with non-levy paying employers

ILR data: Learner information Learner data on the ILR includes information about the learner and their employment status You must record National Insurance number and Unique Learner Number (ULN) The Learning Records Service issues and holds data about ULNs. You will need to register for an account before you can use this service: https://www.gov.uk/government/collections/learning-records-service You must return an employment status record for all apprentices to indicate their employment status prior to the start of the apprenticeship Any change in employment status is recorded by adding a new employment record for that apprentice You must obtain a Unique Learner Number (ULN) for all learners from the Learning Records Service. The ULN is mandatory and validation is used to enforce that it is returned. National Insurance number must also be treated as mandatory, this should be recorded at the start of the apprenticeship. Basic information recorded on the ILR such as the learner’s name, date of birth and sex must match data held by the Learning Records Service Employment status data is used to monitor and ensure funding eligibility for apprentices so you must complete this data accurately. If there is a change in employment status, or a detail about the employment status such as the number of hours worked per week, then this must be recorded in the ILR by adding a new employment status record to the learner’s data

ILR data: Learning information (1) Information about learning is recorded as ‘aims’ Apprenticeships are recorded as a programme aim and one or more component aims The programme aim relates to the whole apprenticeship programme Component aims relate the individual parts of the programme, such as specific qualifications or pieces of training For apprenticeship frameworks the components are: competency, knowledge and functional skills aims Information about learning for an apprenticeship includes data such as the dates the learning starts and ends, outcome of the learning and funding information. This data is recorded in the Learning Delivery entity on the ILR All learning activity undertaken as part of an apprenticeship must be recorded on the ILR, including both qualifications and non-regulated learning activities For apprenticeship programmes you must return a record that describes the programme being followed, this is known as the ‘programme aim’. This records the start date, planned end date, actual end date and completion and outcome data relating to the overall programme.

ILR data: Learning information (2) Aims are identified by a Learning aim reference number These numbers are listed in the Learning Aims Reference Service (LARS) database, accessed via the Hub Programmes are either a framework pathway or an apprenticeship standard, these are identified by codes from the LARS database You also need to record Learning start and end dates Learning planned end date The location where learning is being delivered Funding information about the programme Learning aims are recorded using Learning aim reference numbers from the LARS database, this database contains all of the learning aims that we fund. You can search or download the LARS database through the Hub. Apprenticeship programmes are either a framework pathway or an apprenticeship standard. These are identified by recording codes from the LARS database in the ILR. For frameworks, you must record both a framework code and an apprenticeship pathway code, for apprenticeship standards you only need to record the standard code. Other key data about learning includes: The dates for when learning starts, when it is planned to finish, and (once it has finished) when it actually ended The location where learning is delivered Funding information: see next slide

ILR data: Learning information (3) – funding data In order to calculate funding you must record the following: On all aims: Funding model code 36 Programme type Framework and pathway OR standard code On programme aims: Contract type (also recorded for English and maths aims) Financial records Price for delivery of the programme Any co-investment towards delivery of the programme (if required) All aims must be recorded with Funding model 36, this is used to apply to correct funding calculation to the data. You must also identify the programme by the framework or standard codes as mentioned previously. For programme aims and any English or maths qualifications, you must record the apprenticeship contract type. This will be either code ACT1 or code ACT2 depending on whether the employer is paying the levy or not. ACT1 is recorded if the employer pays the apprenticeship levy, regardless of whether they have funds in their digital account. ACT2 is used for employers who do not pay the apprenticeship levy. These codes are recorded in the Learning Delivery Funding and Monitoring data, you must also return the field ‘Date applies from’ for this contract type. Data in the financial records is used to calculate funding for the programme so it is important that this is completed correctly and is accurate. The financial record dataset contains a series of records, each of which has a type, code, date and amount attached to it. The type and code identify whether the record relates to training or end-point assessment (for standards) and whether the record is a price or a co-investment record. The price is recorded with type ‘TNP’, any co-investment paid by the employer towards delivery of the programme is recorded as a payment record with type ‘PMR’ You must record a price record (with type ‘TNP’) in order to pass data validation. Payment records may not be needed for all programmes, see the next slide for details.

ILR data: Learning information (4) – financial data The financial data will contain the following: Price records: Required for all apprenticeship programme aims Frameworks: training price only Standards: training and end point assessment prices Payment records: Required where the programme is co-investment funded Non-levy paying employer and co-investment funded programme Levy paying employers with insufficient funds Required where the price is above the funding band maximum The employer is responsible for paying the difference between the price and the funding band maximum The financial data you need to return depends on the type of apprenticeship programme being delivered and whether the programme is fully funded or co-investment funded. The general principles are: Frameworks require only a price for training, standards require a price for training and a price for the end point assessment Fully funded from a digital account: record the price only Co-funded from a digital account: return the price and then record co-investment payments from the employer (payments will either be the amount above the funding maximum, or the remaining cost after levy funds have been used up) Government co-investment funded: return both price and payment records Government fully funded (co-investment waiver): record the price only

Apprenticeship funding summary In a nutshell: Programme funding Fully funded from employer levy funds Co-investment funded: 10% employer contribution and 90% government contribution for non-levy paying employers Price above the funding maximum: funded by the employer Employer has insufficient levy funds: remaining amount is co-funded (10% employer contribution) Small business: fully funded by government Completion element English and maths: funded at flat rate, paid based on planned duration Learning support funding: funded at flat rate per month Additional payments High level summary of apprenticeship funding from 1 May 2017 The bulk of funding is the programme funding which is calculated based on the price recorded in the financial details. 20% of the funding is held back until the programme is completed, this is known as the completion element and is paid in full once the programme is recorded on the ILR as complete. Programme funding depends on whether the employer is a levy paying employer or not, if the price is above the funding band maximum the employer will have to pay the difference. Additional payments include: 16-18 learner (paid in two instalments at 90 and 365 days) 19-24 EHC or care leaver (paid in two instalments at 90 and 365 days) 16-18 learner 20% framework uplift (80% split over the planned duration of the programme, 20% paid on completion) Area disadvantage uplift: 3 rates Small business co-investment waiver (also get framework uplift for 16-18) Fewer then 50 employees, and: 16-18 19-24 EHC or care leaver

Useful links ILR specification https://www.gov.uk/government/collections/individualised-learner-record-ilr ILR guidance for returning apprenticeship on the ILR from 1 May 2017 https://www.gov.uk/government/publications/ilr-guides-and-templates-for-2016-to-2017 The Hub https://des.fasst.org.uk/Pages/default.aspx Apprenticeship funding rules https://www.gov.uk/government/publications/apprenticeship-funding-and-performance-management-rules-2017-to-2018 Apprenticeship technical funding guide https://www.gov.uk/government/publications/apprenticeship-technical-funding-guide Service Desk servicedesk@sfa.bis.gov.uk feconnect http://feconnect.sfa.bis.gov.uk/ The ILR specification covers the technical details for all of the data collected in the ILR and how it should be recorded and coded. The main audience for the specification is MI managers who are responsible for returning ILR data and for software writers who produce MI systems for learning providers. The ILR guidance tells you more about the data required for apprenticeships from 1 May and how to record various scenarios in the ILR, including worked examples for some scenarios. This document also contains a list of all of the ILR fields you need to return for apprenticeship programmes. The Hub is where you need to upload your data each month and contains the Learning Aims search facility and links to download FIS and the Learner Entry tool The apprenticeship funding rules and technical guidance contain details about how the funding works The service desk can be contacted with queries and technical issues feconnect is an online forum for those working with data in the FE sector and is a good place to go for peer support.

ILR hints & tips (1) Things to check: Make sure you have recorded all learning aims with Funding model 36 and Source of funding 105 All apprentices must have at least one employment status record. The ILR guidance document contains examples to help you record employment status The learning start date must be the date that learning actually started for an aim: this date can be different to the programme start date for component aims and qualifications Learning aims can only be recorded if they are valid in the LARS database: check that the start date for learning aims are within the ‘valid from’ and ‘valid to’ dates in the LARS database The price you record on the ILR is used to calculate your funding. Make sure that the price reflects the cost to you (as the training provider) for delivery of the programme For apprenticeship standards, you must also record the cost of the end point assessment, refer to the ILR guidance for details Here are a few hints and tips based on common queries from providers: For apprenticeships started on or after 1 May 2017, the funding model must be code 36 and the source of funding must be code 105. We use this information in our funding calculation. Apprentices must have at least one employment status record to indicate their employment status prior to starting the apprenticeship programme. There is detailed guidance and several examples about completing employment status data in the ILR guidance document (see link on previous slide) You should be able to provide evidence about when learning aims start, and aims belonging to a programme do not have to start at the same time. The start dates you record on the ILR should reflect reality. Common validation errors are to do with the learning aims, only aims that are valid for use in the LARS database can be recorded on the ILR. If you see learning aim errors in your validation report, then check the learning start date in the ILR against the validity dates in the LARS database. When you record financial information, make sure that the price accurately reflects the cost to you for delivery of the programme as detailed in the funding rules. The financial information in the ILR feeds into the funding calculation so it is imperative that this data is correct. The ILR guidance and apprenticeship technical guidance (links on the previous slide) contain details about recording this information.

ILR hints & tips (2) Good practice tips: Submit data to the Hub early: this gives you time to check your reports and correct any errors Use FIS to check for common validation errors Your ILR data should reflect reality Read the available guidance: there is lots of useful information, examples and other tips published on gov.uk If in doubt, you can always ask others in the sector on the feconnect forum The deadline submission is the cut off point: you will want to get your data in before this, the earlier you get it in the longer you have to check it. You can resubmit your file as many times as you like up until the submission deadline. FIS can be used to check most of the validation for your ILR file, but remember that there are some validation rules that only run on the Hub so a file that passes validation in FIS may still have errors in it. Data in the ILR should reflect reality and is used for audit purposes, so you should have evidence that the ILR data is correct We produce lots of guidance and documents to support you with understanding apprenticeship funding and completing data, so try a google or gov.uk search if there is something you aren’t sure about Feel free to use to the feconnect forum to contact other people in the sector for additional support: they are making ILR data returns as well so may be able to help you if you’re stuck on something.