Guidance

Evidence requirements for apprenticeships funding: step by step process 2025 to 2026 (accessible)

Updated 30 September 2026

Applies to England

Summary    

This document gives an overview of the Department for Education (DfE) approach to evidence for funding assurance reviews of apprenticeships funding claims.

This evidence approach applies to apprenticeship learners recorded in providers’ individualised learner records (ILR) returns and funded either through DfE apprenticeship contracts (FM36) or employers’ Apprenticeship Service accounts.

Who this publication is for

This document is for:

• all providers that return ILR data
• those who wish to understand the evidence requirements and process for FM36 new apprenticeship funding provision to help comply with the apprenticeship funding rules

What has changed

• minor terminology or clarification updates and policy updates to the apprenticeship funding rules 2025 to 2026

• Step 2 and Step 20: added Foundation Apprenticeship requirements

• Step 3: added new restrictions for level 7 programmes

• Step 4: removal of reference to small employer declaration

• Step 21: clarification that the funding rule method must be used to calculate impacts to funding

• Step 22: update to confirm changes resulting from the use of Skills England off-the-job data

• Step 28: clarification on the extension of apprenticeship agreements

• Step 29 and Step 30: inclusion of assessment of standards that have been revised under the new apprenticeship principles

• Step 38: confirmation of the separate requirements on active learning

• Step 41 and step 46: changes to progress review requirements

• Step 58: updated for 8-month minimum duration

• Step 102: updated requirements for care leaver bursary

• Step 108, step 109 and step 112: updated for impacts of apprenticeships shorter than 12-months

• Step 117: added reference to previous rules for employer co-investment exemptions

Evidence process steps

DfE funding assurance reviews are performed by a DfE auditor or appointed external firm. The process flows in this document lead you through the evidence requirements and audit process. They provide an understanding of:

• what evidence is required by the funding rules
• what the auditor will request from you to test ILR data

These will flow in the order in which the auditor is likely to check the evidence, although the approach or evidence flow may vary depending on circumstance.

This document is designed to help providers:

• understand the audit process for 2025 to 2026
• quality assure their apprenticeship funding claim
• ensure they have appropriate evidence to support a claim

The process flow is based on apprenticeship funding rules 2025 to 2026 and covers 2025 to 2026 apprenticeship ‘starts’.

The evidence requirement process has 8 steps:

1. Learner eligibility
2. Programme eligibility, English and maths and learning support
3. Compliance documents
4. Learner journey throughout practical period
5. Gateway requirements and end point assessment (EPA)
6. Change in circumstance
7. Additional payments for providers, employers and apprentices
8. Employer co-investment

The process flow for additional payments for providers, employers and apprentices is not directly linked to throughout this process, but can be followed from step 93. The payments process does link to other processes, but not from other processes.

The process flow for employer co-investment links from other processes. However, it is also a standalone process and can be accessed from step 117.

Funding rules and guidance

This document supports, and should be read in conjunction with, other guidance given in this section.

Apprenticeship funding rules

These evidence requirement process flows are based on, but do not substitute, the apprenticeship funding rules. Additional audit checks on compliance with funding rules may occur, beyond what is described in this document, depending on the evidence presented for the learner in question. This document does not distinguish between rules for starts in previous years and is subject to change with the funding rules.

You can access additional guidance from:

• the Skills England website, apprenticeship finder
• Annex C, off-the-job training: minimum requirement for each apprenticeship standard
• the Individualised Learner Record (ILR) specification and support manual
• the Apprenticeship technical funding guide from August 2025

You can access provider data self-assessment toolkit (PDSAT) guidance and test working papers by running a sample through the PDSAT toolkit.

Learner eligibility

This section sets out the steps and actions taken to determine the various aspects of learner eligibility. It defines the requirements and responsibilities of the learner, employer or provider. In some instances, where this is not or cannot be achieved, there is a risk to eligibility and therefore funds.

Learner eligibility: step by step

The learner eligibility evidence review process is:

Step 1: Obtain learner, programme and employment related details.

Step 2, step 3, and step 4 run concurrently.

Step 2: Learner details: Ensure you obtain the following evidence:

• eligible residency status
• right to work in England
• the learner starts their apprenticeship after the last Friday in June of the academic year in which they have their sixteenth birthday.

• the learner is not asked to contribute financially to eligible costs of training or assessment, including end point assessment and contributions from student loans

• Foundation apprenticeships: demonstrate status for age, EHCP or care status, prisoner or prison leavers

For all step 2 evidence, verify learner declaration with additional document check.

Step 3: Programme details: Ensure you obtain evidence showing that the learner:

• can complete the programme within the time available - the provider must consider working hours so that expectations are realistic, including for part-time learners
• will gain the required knowledge, skills, and behaviours for their job role and the programme is at the appropriate level. From 1 January 2026, new starts for level 7 apprenticeships will only be funded where learners are under the age of 22, or aged under 25 and have an EHC plan or have been, or are, in the care of their local authority
• is not on other DfE-funded programmes - consider funded exclusions and refer to the apprenticeship funding rules
• is not duplicating prior training or assessment received from other sources

For all step 3 evidence, verify appropriate declarations are in place.

Step 4: Employment details: Ensure you obtain evidence showing:

• an appropriate employment contract - the apprentice must:

  • not be self-employed, working under IR35, or a shareholder or director or person of significant control
  • have a separate identifiable line manager
  • be included in the PAYE scheme declared in the apprenticeship service account
  • have a contract of employment for a period of time which is long enough for the apprentice to complete the apprenticeship, including the end-point assessment
  • be receiving a lawful national minimum wage
• details of normal working hours
• a minimum of 50% of working hours are spent in England - hours must be regular, planned and known hours at the start of the apprenticeship, including for remote and hybrid workers
• if you are a flexi-job apprenticeship agency, follow specific apprenticeship funding rules.

For all step 4 evidence, verify employer declarations are in place with the appropriate compliance documents.

Step 2, step 3 and step 4 merge.

Step 5: Is the learner eligible? If yes, move to step 6. If no, move to step 7.

Step 6: Continue to Programme eligibility, English and maths and learning support.

Step 7: Learner is not put onto programme. Investigate and resolve if possible. Restart eligibility checks from step 1, if required. If learner is not eligible, end of process.

Programme eligibility, English and maths and learning support

This section contains the steps and actions taken to determine the various aspects of programme content, including English, maths and learning support. It defines the requirements and responsibilities of the learner, employer or provider through the initial assessment process. Where this is not or cannot be achieved, there is a risk to funds, ranging from partial to all funds.

Programme eligibility, English and maths and learning support: step by step

The programme eligibility evidence process comprises:

Step 8: Document and verify learner’s declaration of prior learning, including English and maths, and work experience, and any learning difficulties or disabilities.

Step 9: Document the personal learning record (PLR) and prior learning certificates, used to support some of the next steps for prior learning exemptions.

Step 10, step 11, and step 12 run concurrently.

Step 10: Assess for learning support, from learner self-declaration, or further conversations or evidence.

Step 11: Complete a skills scan, supported, and contextualised by the provider to ensure accuracy and impact of prior learning, including work experience.

Step 12: English and maths initial assessment and diagnostics, where applicable.

Step 13: Outcome of initial assessments and review. Document the outcome of all assessments and three-way review between provider, learner, and employer; whether impacting or not. Explanation of any scoring mechanism is useful. There is a flexible approach regards skills scans for 16- to 18-year-olds.

Step 14: Does the outcome require additional learning support? Learning support could also be identified throughout the programme, but an assessment must be made and documented at the start. If yes, move to step 15. If no, move to step 19.

Step 15: Document the assessment of difficultly or disability.

Step 16: Document details of the reasonable adjustment and how a cost is incurred.

Step 17: Document the how programme is affected without reasonable adjustment.

Step 18: Document a plan of delivery before beginning learning support. Adapt the plan appropriately, if needed.

Step 19: Does the outcome require English and maths? If yes, move to step 20. If no, move to step 21.

Step 20: Determine the subject and aim level, up to level 2. Determine optional or mandatory requirements based on learner age. Foundation apprenticeships must have 55 guided learning hours per subject for 16- to 18-year-olds.

Step 21: Does the outcome affect off-the-job content? Quantify reduction in content of knowledge, skills or behaviours in off-the-job hours, the cost in pound sterling and duration in days, weeks, or months. If yes, move to step 22. If no, move to step 23.

Step 22: Determine the impact on content, cost, and duration. For starts from 1 August 2025, the provider should use their own planned hours as the starting point, provided they are equal to or more than the Skills England published minimum, or the transition data in the Apprenticeship funding rules and assessment plan guidance, 2025 to 2026 - Annex C, Off-the-job training: minimum requirement for each apprenticeship standard. If there is insufficient content remaining and the learner does not meet the 8-month minimum duration, they are not eligible.

Step 23: Document the justification for any, or no, adjustments made.

Step 24: Are you subcontracting? If yes, move to step 25. If no, move to step 26.

Step 25: Ensure the training plan and written agreement with employer are fully complete with any impacting outcomes. Reference delivery and cost impacts, as well as the outcome of the initial assessment conditions, in the training plan and written agreement with employer, as in the apprenticeship funding rules. Refer to compliance documents for further details.

Step 26: Complete the required compliance documents.

Compliance documents

This section contains the steps and actions taken to create compliant documents. It emphasises that each document must fulfil the minimum requirements, as given in the Apprenticeship funding rules. It also covers how to deal with some issues and avoid future risks. In some instances, where fully compliant documents are not or cannot be achieved, there is a risk to:

• all funds
• resource intensive remedial action during an audit

Compliance documents: step by step

The compliance documents evidence process comprises:

Step 27: Ensure compliance documents and contracts are in place. Refer to the apprenticeship funding rules for a detailed list of required content (from which a checklist can be produced).

Step 28, step 29, step 30, and step 31 run concurrently.

Step 28: Apprenticeship agreement is between the employer and the apprentice. It is not required for the Alternative English Apprenticeship.

Check the apprenticeship agreement:

• is separate to, but reflective of, the training plan
• meets the minimum requirements
• is extended if the programme is extended - this must be correct
• is signed by both parties - the same person cannot sign a contract, including an apprenticeship agreement, as both the apprentice and as the employer. The apprenticeship agreement could be embedded in an employment contract.

Step 29: Training plan is between the provider, employer, and apprentice and must be:

• agreed before any training is delivered
• fully complete within 42 days (content can be added later for longer programmes)

Check the training plan:

• meets the minimum requirements, which must include:

  • details for the assessment of standards that have been revised under the new apprenticeship principles

• the planned assessment timeline and end point assessment organisation

• is signed by all parties

• calculates and plans for all off-the-job training, assessment and programme content as described in

  • the outcome of initial assessments
  • the process flow, programme eligibility, English and maths and learning support; from step 8 to step 26 (For assessment of standards that have been revised under the new apprenticeship principles, evidence you have a contract with each applicable end-point assessment organisation that fulfils the funding rule requirements, including cost of assessment.)

Step 30: Written agreement with the employer is between the provider and employer. It is not required for employer-providers. Employers must document actual costs within file evidence and learner data returned as LDM356 in the ILR.

Check the written agreement:

• meets the minimum requirements regards subcontracting
• provides EPA price, if known - it must not be estimated and must not include VAT. For assessment of standards that have been revised under the new apprenticeship principles, you must evidence that you have a contract with the end point assessment organisation that fulfils the funding rule requirements, including cost of assessment, for each organisation as applicable
• agrees a schedule for employer co-investment payments (Refer to the employer co-investment process for details, starting from step 117)
• is signed by both parties - this is essential

The written agreement could also contain the full price breakdown of eligible delivery costs. Entries must not include VAT. Where the delivery cost is not in the written agreement with the employer, the breakdown of costs must be documented and clearly agreed by the employer.

Step 31: Subcontracting contract (if applicable) is between the provider and the subcontractors.

Check the subcontracting contract:

• meets the minimum requirements
• is referred to with the subcontract details in both the training plan and written agreement
• is signed by both parties
• has a completed subcontractor declaration the UKPRN in the ILR is updated

Step 32: Good practice for management to check or second line check all documents.

Step 33: All versions and revisions of compliance documents must be retained. Where the training or assessment price changes, your evidence must show the renegotiation of costs to support the ILR. These must be documented and agreed by the employer.

Step 34: Update the ILR with:

• planned learning aims
• total planned off-the-job hours
• practical period dates
• training price (TNP1)
• assessment price (TNP2) if known

ILR data must be consistent with the relevant compliance document.

Step 35: Good practice for management to check and second line check all ILR data.

Step 36: Continue to learner journey throughout the practical period.

Learner journey throughout the practical period

This section contains the steps and actions taken from the learner’s start date and up to the practical period end date. It defines what action is required by the provider. The delivery and evidence should reflect the training plan. Maintaining effective evidence allows for an efficient audit. Where ineffective delivery records are maintained, partial or full funds may be at risk.

Learner journey throughout the practical period: step by step

The learner journey throughout the practical period evidence process of a review consists of:

Step 37: Learning start date is from any activity directly related to the programme, including functional skills. Hold evidence at an aim level. Evidence of learning activity must align with the learning start date in the ILR for the individual aims.

Step 38: Active learning at least every calendar month must include:

• off-the-job training
• functional skills

Delivery methods could include provider direct learning, employer led, and self-directed.

Eligible activity must be described and off-the-job hours quantified. Providers must comply with active learning rules for English and maths and off-the-job separately, where funding is being accessed.

Step 39: Is there evidence of off-the-job delivery? If yes, move to step 40. If no, move to step 42.

Step 40: Evidence of delivery: Quantify actual off-the-job hours and confirm it meets the definition of eligible off-the-job.

Step 41: Progress review: Progress review at least every 3-calendar months. If agreed with the employer, follow alternative frequency.

Step 42: Is there evidence of English or maths aims? If yes, move to step 43. If no, move to step 44.

Step 43: Evidence of delivery: Hold evidence at an aim level.

Step 44: Is there evidence of learning support? If yes, move to step 45. If no, move to step 47.

Step 45: Evidence of delivery of reasonable adjustment that has incurred a cost for the month claimed.

Step 46: Evidence of progress reviews every 3 calendar months, to determine reasonable adjustment remains necessary and appropriate.

Step 47: Has there been a change in circumstance? There must be delivery each calendar month. If there is no delivery, you must consider a break in learning. However, follow exceptions described in the Apprenticeship funding rules, such as term time contracts, delivery models and re-planning of catch-up learning in the following month. If yes, move to step 72. If no, move to step 48.

Step 48: Has learner achieved a component learning aim? If yes, move to step 49. If no, move to step 51.

Step 49: Evidence of achievement, certificate or awarding body MI output.

Step 50: Update ILR. Completion and outcome status.

Step 51: Is the learner within 6 months of the planned end date? If yes, move to step 52. If no, move to step 54.

Step 52: Evidence of end point assessment organisation (EPAO) contract or agreement, and price. ILR must not be estimated. If the end-point assessment organisation is not known at start, the training plan must be updated as soon as this information is available. This must be no later than 6 months before the learning planned end date. For integrated apprenticeships, the price must be clearly documented in the evidence pack and accurately reflected in the ILR, along with the correct EPAO reference.

Step 53: Update ILR. Assessment price and EPAO reference.

Step 54: Has the learner completed all learning activities? If yes, move to step 55. If no, move to step 38.

Step 55: Has the learner completed the minimum off-the-job and duration? If yes, move to step 56. If no, move to step 38.

Step 56: Continue to gateway requirements and EPA.

Gateway requirements and EPA

This section contains the steps and actions taken at the point the learner enters gateway and up to the end of apprenticeship date. It defines what action is required by the provider, and in some cases the employer and learner. These actions are required to ensure all programme requirements are met and that all administrative processes are compliant. Where this is not, or cannot, be achieved, delays to the audit timescales are likely. Where the minimum requirements have not been met, all funds are at risk, and after this point, a provider is unlikely to able to resolve the issue.

This process links to the employer co-investment process flow. However, employer co-investment must be considered in its own right. The gateway requirements and EPA process flow only recommends a final check of the employer co-investment. The employer co-investment process flow starts at step 117.

Gateway requirements and EPA: step by step

The gateway requirements evidence process of a review consists of:

Step 57: Complete a three-way discussion between the provider, employer and learner.

Step 58: Check delivery records and verify that gateway requirements are met, including minimum off-the-job training and duration, and any English and maths or other mandatory aim.

• Starts from 1 August 2025 have a minimum duration of 8 months and minimum off-the-job based on a starting point from the Skills England published minimum requirement.
• Starts before 1 August 2025 have a minimum duration of 12 months and minimum off-the-job based on a starting point from employment contracted hours and duration of practical period.

Step 59: Confirmation from provider and employer that learner now has all required knowledge, skills, and behaviours to complete the apprenticeship.

Step 60: Has the learner completed early and achieved fewer hours than planned? If yes, move to step 61. If no, move to step 62.

Step 61: Complete a documented statement explaining why there are fewer hours. See Apprenticeship funding rules for specific topics to include.

Step 62: Documented confirmation from the employer that the learner will be employed through the gateway period. With the exception where the apprentice has been made redundant.

Step 63: Update ILR with actual end date, actual off-the-job, completion, and outcome status. Actual end date is the end of the practical period, the last day of learning the final learning activity.

Step 64: Retain all delivery records.

Step 65: Learner to complete EPA.

Step 66: Retain evidence of EPA attempted, and result. Certificate or EPAO MI output. Confirmation from EPAO that learner will receive their certificate.

Step 67: Do you need to collect co-investment? If yes, move to step 68. If no, move to step 69.

Step 68: Move to co-investment process. Move to step 117.

Step 69: Pay the EPAO and retain evidence of payment.

Step 70: Update ILR. Completion status, outcome status, achievement date. Achievement date at completion of EPA is the, or final, assessment date.

Step 71: End of apprenticeship.

Change in circumstance

This section contains the steps and actions where a change in circumstance may occur. It defines what action is required by the provider, in conjunction with the employer and learner circumstance. These actions are required to ensure compliance with the Apprenticeship funding rules, including ILR data. Where this is not, or cannot, be achieved, delays to the audit timescales are likely if updated documents are required. Depending on any issues which may occur, partial or full funds may be at risk.

This does not account for all change in circumstance. Refer to Apprenticeship funding rules for more details.

Change in circumstance: step by step

The change in circumstance evidence process of a review comprises:

Step 72 What is the change in circumstance?

• Break in learning, move to step 73.
• Change in employer, move to step 80.
• Learner has been made redundant, move to step 82.
• Transfer to a different provider, move to step 88.
• Withdrawal, move to step 91.

Step 73: Break in learning

Step 74: Document reason for break and retain evidence of learning on the actual end date.

• Functional skills actual end dates will be learning activity related solely to the English or maths aim.
• Programme aim actual end date will be learning related to any activity in the programme, including functional skills.

Step 75: Update ILR with completion and outcome status and actual end date. Last day of learning is the actual end date, not last date of employment. Relevant funds to the date of withdrawal will be repaid back via the ILR.

Step 76: Does the learner intend to return to learning? If yes, move to step 77. If no, move to step 91.

Step 77: Update the ILR with resumption data on return.

Step 78: Re-plan the learning if required and update relevant compliance documents and ILR. Update apprenticeship agreement and training plan and, for change in employer, a new written agreement with the employer.

Step 79: If redundancy occurs, provide support to find a new employer. Return to learner journey in all instances. Move to step 38.

Step 80: Change in employer

Step 81: Update the employer details in ILR, including ‘effective from’ dates. Move to step 78.

Step 82: Learner has been made redundant

Step 83: Continue delivery as per Apprenticeship funding rules. Evidence redundancy and any support given to the apprentice to find a new employer. Evidence could be a copy of the dismissal notice, citing the reason for dismissal as redundancy. In the absence of this, other evidence could include an email informing employees that the business is closing or has closed.

Step 84: Update the employment details within ILR, including ‘effective from’ dates. The unemployed status ‘effective from’ date is the date of redundancy.

Step 85: New employer found within twelve weeks? If yes, move to step 80. If no, move to step 86.

Step 86: Does the learner qualify for an Alternative English Apprenticeship? The learner must, on the day of being made redundant, be within 6 months of the final day of the practical period or have completed at least 75% of the practical period. If yes, move to step 79. If no, move to step 87.

Step 87: Document evidence of apprenticeship part-completion. Move to step 92.

Step 88: Transfer to a different provider

Step 89: Update ILR with completion and outcome status, and actual end date. Last day of learning is the actual end date, not last date of employment. Relevant funds, to the date of withdrawal, will be repaid back via the ILR.

Step 90: End of apprenticeship episode.

Step 91: Withdrawal

Step 92: Document reason for withdrawal and retain evidence of learning of the actual end date. Move to step 89.

Additional payments for providers, employers, and apprentices

This section contains the steps and actions for providers where learners and employers are eligible for additional payments. These actions are required to ensure parties receive the additional payments they are entitled to. Where this is not, or cannot, be achieved, audit timescales are likely to be delayed as payments must then be made during the audit. Where these payments cannot be made, full funds may be at risk for the payment in question.

This process flow is independent of all other process flows. This process links to the employer co-investment process flow. However, employer co-investment must be considered independently. The additional payments for providers, employers, and apprentices process flow only recommends steps that should be taken for the employer co-investment, following the eligibility of additional payments and learner age. The employer co-investment process flow can be started at step 117.

Additional payments for providers, employers, and apprentices: step by step

The additional payments for providers, employers, and apprentices evidence process of a review comprises:

Step 93: 42 days qualifying period for funding passed.

Step 94: Determine learner status.

• Learner is 16- to 18-year-old and not eligible for care leaver bursary, move to step 95.
• Learner is 16-to 18-year-old and is eligible for care leaver bursary, move to step 97.
• Learner is 19 to 24, with an education, health and care plan (EHCP ) or been in care, and is eligible for care leaver bursary, move to step 102.

Step 95: Learner is 16- to 18-year-old and not eligible for care leaver bursary

Step 96: Provider and employer will receive young apprentice additional payment based on date of birth. Move to step 109.

Step 97: Learner is 16-to 18-year-old and is eligible for care leaver bursary. The provider must give the learner the opportunity to declare their eligibility for the care leavers’ bursary at start.

Step 98: Learner signed declarations. See Apprenticeship funding rules for specific content.

Step 99: Retain evidence of date of birth, and EHCP or care leaver.

Step 100: Provider and employer will receive young apprentice additional payment based on date of birth.

Step 101: Ensure the ILR is updated with the relevant funding code for learner bursary payment. This is to draw down the care leaver bursary payment. Funding codes are required to exempt employer payments. Move to step 108.

Step 102: Learner is 19 to 24, with EHCP or been in care, and is eligible for care leaver bursary.

Step 103: Learner signs declarations. See funding rules for specific content.

Step 104: Retain evidence of date of birth, and EHCP or care leaver.

Step 105: Does the learner give consent to inform employer? If yes, move to step 106. If no, move to step 110.

Step 106: Ensure the ILR is updated with the relevant funding code for learner and employer payments. This is to draw down the young apprentice additional payment made to the provider and employer and the care leaver bursary payment. Funding codes are required to exempt employer payments.

Step 107: Provider and employer will receive young apprentice additional payment based on date of birth and funding code.

Step 108: Evidence care leaver bursary payment to learner at 60, 120 and 300 days.

This must:

• be evidenced within 30 days of receipt
• be evidenced within the provider’s financial systems
• show transaction of payment
• include confirmation from the apprentice that each payment has been received

If the apprentice is on a shorter apprenticeship (the published typical duration is less than 12 months) or foundation apprenticeship, payment will be generated after 242 days, not 300 or 365.

If the apprentice is on an apprenticeship where the published typical duration is 12 months or more, but they complete before the final instalment is expected, the final instalment will not be made.

Step 109: Evidence additional or progression payment to employer at 90 and 365 or 242 days.

This must:

• be evidenced within 30 days of receipt
• be evidenced within the provider’s financial systems
• show transaction of payment

If you are unable to pass this payment to the employer, you must evidence the attempts made and confirm that the payment has been returned to us via the earning adjustment statement (EAS).

If the apprentice is on a shorter apprenticeship (the published typical duration is less than 12 months) or foundation apprenticeship, payment will be generated after 242 days, not 300 or 365.

If the apprentice is on an apprenticeship where the published typical duration is 12 months or more, but they complete before the final instalment is expected, the final instalment will not be made.

Step 110: Ensure the ILR is updated with the relevant funding code for learner bursary payment. This is to draw down the care leaver bursary payment. Funding codes are required to exempt employer payments.

Step 111: Ensure the ILR is updated with the relevant funding code, so the employer payment is not made. This is to draw down the care leaver bursary payment. Funding codes are required to exempt employer payments.

Step 112: Evidence care leaver bursary payment to learner at 60, 120 and 300 or 242 days.

This must:

• be evidenced within 30 days of receipt
• be evidenced within the provider’s financial systems
• show transaction of payment
• include confirmation from the apprentice that each payment has been received

If the apprentice is on a shorter apprenticeship (the published typical duration is less than 12 months) or foundation apprenticeship, payment will be generated after 242 days, not 300 or 365.

If the apprentice is on an apprenticeship where the published typical duration is 12 months or more, but they complete before the final instalment is expected, the final instalment will not be made.

Step 113: Do not apply the co-investment waiver in the ILR. Where a learner is 22 to 24 years-old and does not want to inform their employer that they have an EHCP or that they were previously in care, you must not apply or record the co-investment waiver.

Step 114: Do you need to collect or check co-investment? If yes, move to step 117. If no, move to step 115.

Step 115: Has learner withdrawn? If yes, move to step 92. If no, move to step 116.

Step 116: Has the learner completed EPA? If yes, End of apprenticeship. If no, move to step 114.

Employer co-investment

This section contains the steps and actions for providers to determine if the employer is eligible for the employer co-investment waiver, and what actions to take if they are. If the correct data is not applied to the ILR, the provider may risk not receiving the completion payment. If this cannot be resolved prior the hard closure of the ILR, the provider will not be entitled to the completion payment.

This process is the full co-investment process, but it is referenced from other process flows. Although this process links back to other process flows, employer co-investment must be considered independently.

Employer co-investment: step by step

The employer co-investment evidence process of a review comprises:

Step 117: Check requirements for co-investment. For exemptions to the payment of employer co-investment, for learners who started prior to 1 April 2024, previous versions of Apprenticeship funding rules and of this document will apply.

Step 118: Is learner 16 to 21 years old? If yes, move to step 121. If no, move to step 119.

Step 119: Is learner 22 to 24 years old, with a EHCP or been in care? If yes, move to step 120. If no, move to step 126.

Step 120: Has learner given consent to inform their employer? Where a learner is 22 to 24 and does not want to inform their employer they have an EHC plan or that they were previously in care, you must not apply or record the co-investment waiver. Learner consent must be signed and documented. If yes, move to step 121. If no, move to step 126.

Step 121: Is the employer non-levy? For new starts from 1 April 2024, we will waive the co-investment requirement for employers who do not pay the levy where the learner meets particular criteria. Where an employer is eligible for this waiver at the start of an apprenticeship, but subsequently starts to pay the levy during the apprenticeship, we will use funds from their account, if they are available. If the amount of levy available that month is less than the earnings that month, we will fully fund the remainder under the co-investment waiver. If yes, move to step 122. If no, move to step 126.

Step 122: Retain evidence of co-investment waiver. Document evidence of the learner’s date of birth, EHCP or care leave status, if applicable, and evidence of Apprenticeship Service Support Desk waiver approval, if applicable.

Step 123: Ensure co-investment waiver is recorded correctly in the ILR.

Step 124: No co-investment to collect.

Step 125: Move back to the payment process, or end of process. Move to step 115 for payments process.

Step 126: Do not apply the co-investment waiver in the ILR.

Step 127: Agree a schedule for and make arrangement with employer to collect co-investment, up to completion. Monitor levy employers. You may agree a schedule of co-investment payments with the employer, which does not match monthly payments made by us, provided the employer has paid a matching co-investment payment. Use the co-investment reports regularly to identify levy paying employers with insufficient funds and therefore falling into co-investment. It is unlikely levy paying employers will be regarded as small employers and therefore eligible for the co-investment waiver, but you should make these checks.

Step 128: Collect the co-investment as agreed. You must have collected and recorded at least the amount of co-investment required for the whole apprenticeship up to the month before the completion payment is due, not counting any co-investment which might be required for the completion element itself. Use the co-investment report to help monitor.

Step 129: Document the collection of co-investment payments. Evidence collection of employer co-investment. This must be a transfer of funding that is visible in your financial systems; typically, this would be in the form of a main provider invoice and corresponding employer payment.

Step 130: Ensure the ILR matches the co-investment you collect. We may withhold the final completion payment until all the necessary employer co-investment has been collected. Do not include VAT in the ILR reporting.

Step 131: Has learner withdrawn? If yes, move to step 132. If no, move to step 135.

Step 132: Reimburse any overpayments of co-investment to employer, to the point of actual end date.

Step 133: Ensure the ILR matches the co-investment you have collected and repaid.

Step 134: Follow change in circumstance for withdrawal. Move to step 92.

Step 135: Ensure the ILR matches the co-investment you collect as this may risk the completion payment. We may withhold the final completion payment until all the necessary employer co-investment has been collected. Do not include VAT in the ILR reporting.

Step 136: Move back to the payment process at step 115 for payments process, move back to Gateway requirements and EPA at step 69, or end of process.