1. Nick Ayton Head of Funding Data and Calculations
Funding and payments in the Apprenticeship Service Empowering employers to build skills through quality apprenticeships
Nick Ayton
Head of Funding Data and Calculations

2. Guidance
The information contained in this presentation is included in the published Technical Funding Guide.
technical-funding-guide

3. Single funding model (funding bands)
Number
Band limit 1
£1,500 2
£2,000 3
£2,500 4
£3,000 5
£3,500 6
£4,000 7
£5,000 8
£6,000 9
£9,000 10
£12,000 11
£15,000 12
£18,000 13
£21,000 14
£24,000 15
£27,000
The upper limit caps - the maximum:
amount of digital funds an employer who pays the levy can use towards an individual apprenticeship.
that government will ‘co-invest’ towards, where an employer does not pay the levy or has insufficient digital funds
Employers negotiate the best price for the training they require. The negotiated price does not include:
VAT
English and maths (up to level 2)
Learning support
Additional payments
Framework uplift
Employers can spend more than the funding band limit using their own money (not the levy)
Funding bands do not have a lower limit
All apprenticeship framework pathways and standards are allocated a funding band (15 in total)
The funding band caps the maximum amount that government will pay (either through levy or co-investment)
Employers and provider negotiate a price – for employer providers it is the estimated price of delivery
Prices can be negotiated above or below the band –employer must pay the provider any funding above the band
Price only covers the training, delivery and assessment – it doesn’t cover additional payments/uplifts

4. Co-investment
The government will co-invest up to the funding band maximum where:
an employer does not pay the levy
an employer has insufficient digital funds
The co-investment rate is 90% of the earnings in a particular month
The exceptions are:
small businesses with fewer than 50 employees and the apprentice is either young or disadvantaged
Including small employers who also pay the levy.

5. Funding elements for the new model
There are 3 main elements in the new funding model:
Completion element - 20% of the lower of either the funding band maximum or the negotiated price is withheld for completion.
Monthly instalments - the remaining 80% is split over the duration of the apprenticeship
Additional payments – additional funding earned at particular times in the apprenticeship

6. Monthly instalments and completion example
Total negotiated price = £16,000, but the band limit is £15,000
Employer directly pays the provider the £1,000 above the band maximum
20% is held back for completion = £3,000 (20% of £15,000)
Apprentice starts 15 August 2017 and planned to finish on 23 August 2019, covering 24 census dates
£12,000 over 24 months = £500 per month planned instalments
We withhold 20% of the price up to the band maximum for completion
Remaining 80% is equally split over the each month the apprenticeship is planned to last
Aug 17
Sep 17
...
Jun 19
Jul 19
Aug 19
Planned instalments
£500
Expected completion
£3,000

7. Additional payments for the young / disadvantaged
Applies to apprenticeship standards and frameworks
There are additional payments for apprentices who are:
aged 16 to 18 years old when they start
aged who left care or have a local authority Education Healthcare plan
For these learners we will pay the following amounts:
Per apprentice
at 90 days
at 365 days
Total
to employer
£500
£1,000
to provider

8. English and maths English and maths up to level 2
Where an apprenticeship requires the apprentice to study English or maths up to level 2, the government will fully fund eligible English and maths qualifications at a rate of £471.
Includes British Sign Language
This is the same value as in the current Trailblazer pilot.
How they are funded
The cost of English and maths are not included in the total price negotiated between the employer and provider, unless it is level 3+
These costs are fully funded
These costs are not taken out of employer’s digital accounts.
There is no completion element and the funding is equally split across the duration of the qualification.

9. Learning support Learning support No change from current systems.
Earned at £150 per month as in current system.
If there is evidenced need, providers can claim excess learning support and exceptional learning support through the Earnings Adjustment Statement.
How they are funded
The cost of learning support is not included in the total price negotiated between the employer and provider
These costs are fully funded
These costs are not taken out of employer’s digital accounts

10. Transitional support for frameworks (1 of 2)
Training providers will receive additional transitional support for delivering apprenticeship frameworks through:
16-18 framework uplift
20% of funding band maximum
Also applies to year olds formerly in care or have Education and Health Care plan
Funding is earned like the apprenticeship:
20% upon completion
80% split across monthly instalments
“We will keep it under review and envisage reducing this uplift as more apprenticeship starts are on new apprenticeship standards.”

11. Transitional support for frameworks (2 of 2)
There are additional payments for providers for apprentices who are from areas of deprivation, and start an apprenticeship framework.
These are transitional payments for one year only.
We use the Index of Multiple Deprivation (IMD) from 2015, with the apprentice’s Postcode Prior to enrolment.
Additional payments per apprentice on a framework
at 90 days
at 365 days
Total
apprentices from 10% most deprived areas
£300
£600
apprentices from 11-20% most deprived areas
£150
apprentices from 21-27% most deprived areas
£100
£200

12. Apprenticeship service
Data matching for levy employers only
Employer
Provider
Apprenticeship service
Apprentice 1 Provider A
ILR
The data items to be matched:
Learner: Unique Learner Number
Provider: UKPRN
Total price
When the apprenticeship started
Apprenticeship ID: LARS codes
The employer will need to authorise the apprenticeship for us to use the funds from their digital account to pay the provider
We match the key information

13. Apprenticeship service data and payment
Submit ILR
Indicative
Data match
and Reports
Final data submitted
Final data match
Payment
Reports
You submit an ILR and we will produce indicative reports to tell you if data doesn’t match the data in the digital account and what you have earned
When the ILR window has closed will we will run these reports again and provide final reports, explaining which learners are levy funded and which are co-invested

14. Guidance
The information contained in this presentation is included in the published Technical Funding Guide.
technical-funding-guide