Guidance

Policy for apprenticeship employers demonstrating high-risk behaviours

Updated 1 September 2025

Applies to England

1. Background and introduction

1.1: The Secretary of State acts through the Department for Education (DfE).

1.2: DfE’s remit includes financing apprenticeship training and education services for people in employment.

1.3: DfE must exercise appropriate control over the funding for which it is responsible. For funding involving employers, this means it must ensure that:

• public funds are properly spent and are safeguarded through continued identification of employer funding risk
• services and activities are delivered within the terms of employer agreements, and funding rules in place
• funding is used to deliver the policies and priorities set by the Secretary of State and for the purposes intended by Parliament

1.4: In addition to being responsible for funding the delivery of education and training, and to be confident that the requirements in the previous paragraph are met, DfE must also be satisfied that employers are acting in accordance with employer agreements and:

• delivering appropriate services to learners
• providing accurate data
• managing services effectively

1.5: The provision of funding is contingent on DfE being satisfied that an employer is not demonstrating high-risk behaviour, as set out in this policy and employer agreements.

2. Purpose of this policy

2.1: This policy sets out and defines:

• what DfE means by high-risk behaviour by an employer
• the possible actions DfE may or may not take if it identifies high-risk behaviour by an employer
• DfE’s decision-making process where high-risk behaviour is identified

2.2: High-risk behaviour means behaviour by the employer where:

• its actions or intentions put public funding at risk of not being used for the purpose for which it received funding
• it colludes with any other party, including the training provider, in order to be granted funding for which it is not eligible
• any employee or other individual carrying out activities on behalf of the employer, or a connected employer, has acted dishonestly or negligently at any time in its dealings with DfE
• it has negligently or deliberately provided misleading information to DfE or the training provider that could influence decisions about the availability of DfE funding that benefit the employer or any other party
• DfE reasonably considers there is evidence of fraud, irregularity, negligence or dishonesty by a connected person in relation to DfE funding

2.3: In considering the impact and consequences of an employer’s high-risk behaviour, DfE will consider available information and evidence. More details are given in the decision-making process section.

2.4: Where an employer demonstrates high-risk behaviour, DfE, having considered the information and evidence available to it, will then consider what action to take, if any. The range of options is summarised in the application of the grounds section.

2.5: DfE reserves the right to take any of the steps set out in the decision-making process section whilst it undertakes relevant checks and tests. However, any such steps will be taken only for as long as they are serving a legitimate aim.

2.6: The employer has entered into the employer agreement and, by doing so, has agreed to abide by the apprenticeship funding rules. The employer has also agreed to comply with the terms and conditions of the apprenticeship service, where applicable.

3. Scope of the policy

3.1: This policy applies to public and private sector employers (including employer-providers) accessing apprenticeship programme funding (apprenticeship levy and co-investment) and non-standard funding, such as time-limited employer incentives.

3.2: This policy sits alongside and supplements the funding rules and the employer agreement (as may be updated or supplemented by related processes, agreements, rules and conditions from time to time) that are used in the delivery and management of apprenticeship funding.

3.3: This policy applies to connected employers, as defined in the employer agreement (the definitions are set out in the annex). In this policy, references to the employer also includes a connected person or a connected employer, unless the context requires otherwise. The actions and non-actions of a connected person or a connected employer are deemed to be the actions and non-actions of the employer.

3.4: The terms in this policy are defined in the annex.

3.5: For the avoidance of doubt, if the employer is classified as an employer-provider, this policy applies to that employer.

3.6: Where the employer is operating as a separate legal entity (including via a limited company or a group of companies), the conduct or omissions of the officers in charge will be taken into account when considering whether the employer is exhibiting high-risk behaviour.

4. Applicable grounds for high-risk behaviour

4.1: An employer will be considered to be demonstrating high-risk behaviour if any of the grounds set out in circumstances for considering high-risk behaviour apply to that employer, a connected employer or a connected person.

4.2: Having identified the application of one of the grounds, DfE will consider the information and evidence available to it and decide what action to take, if any. The range of options available to DfE in these circumstances, which may include taking no action, is summarised in the application of the grounds section.

5. Decision-making process

5.1: As part of its decision-making process, DfE will consider:

(a) whether one or more of the grounds that give rise to the application of this policy is continuing, or is likely to occur again (the grounds are set out in the circumstances for considering high-risk behaviour section), including considering:

• evidence that the employer, connected employer or connected person has taken the circumstances seriously (for example, by repaying monies or funding)
• the steps that the employer, connected employer or connected person has taken to prevent the circumstances continuing or occurring again (for example, by putting in place new procedures or training, or changing staff or management)
• the commitments it has made that such steps will be taken
• the provision of information or access to allow for such steps to be verified and monitored
• the time that has elapsed since the circumstances last occurred
• any other evidence that DfE considers appropriate

(b) the level of risk associated with the high-risk behaviour

(c) the nature and complexity of the matters being assessed

(d) any legal restrictions that impact on the options being considered

(e) information that DfE has from its own knowledge, or intelligence from records it maintains

(f) information already in the public domain

(g) accessible records held by other organisations that can be accessed or disclosed to DfE

Excluded matters

5.2:  In deciding whether any of the grounds given in the circumstances for considering high-risk behaviour section apply to an employer, a connected employer or a connected person, DfE will take no account of any:

• event that occurred before the 5-year period ending on the date on which the decision is made
• conviction that is regarded as spent within the meaning of the Rehabilitation of Offenders Act 1974 (and subsequent amendments)

Representation and final decision

5.3: The employer concerned will be notified of DfE’s intention to take action under this policy and the reasons for the decision. The employer will be given the opportunity to make representations in all cases, unless DfE has a right to enact immediate termination as set out in the relevant employer agreement. Decisions will be made on a case-by-case basis.

5.4: If an employer falls within one or more of the criteria set out in the circumstances for considering high-risk behaviour section, DfE may exercise its right to take action as set out in the application of the grounds section. It may do so for a period of time to be determined by DfE, acting reasonably and proportionately, up to a maximum of 5 years, except where the Rehabilitation of Offenders Act 1974 (and subsequent amendments) applies.

5.5: DfE will inform the employer of the decision and the reasons for it, except in limited circumstances, if it:

• believes fraud has occurred
• reasonably concludes that to do so could prejudice or undermine an investigation

5.6: DfE’s decision is final and there is no appeal process. If an employer feels that due process has not been followed, the employer can make a formal complaint directly to DfE. Any complaint will be resolved in accordance with DfE’s official complaints procedure.

6 Application of the grounds

6.1: Where one or more of the grounds set out in the circumstances for considering high-risk behaviour section apply to an employer, DfE may exercise its right to take whatever action it deems necessary, operating within the processes for funding, and acting reasonably, proportionately and in accordance with the law. In reaching its decision, DfE will follow the decision-making process.

Having established that an employer is demonstrating high-risk behaviour, DfE’s options include, but are not limited to, one or more of:

• pausing or refusing access to the apprenticeship service, including stopping funding (this may be for new funding, existing funding or both, depending on the alleged conduct)

• refusing to make a payment under any incentive payment scheme, or through any type of contract or agreement with DfE for any other apprenticeships funding (this may include recovering amounts already paid)

• refusing to register the employer on any register used by DfE

• removing an employer from any register used by DfE

• terminating the employer agreements

• restricting or withdrawing funding under an employer agreement, or stopping payments on either a temporary or permanent basis

• limiting the numbers of apprentices funded by DfE by placing a cap on reservations made through the apprenticeship service

• obtaining reassurances and commitments from the employer or a connected employer that the circumstances that gave rise to the ground in circumstances for considering high-risk behaviour have ceased and will not occur again

• taking no formal action

6.2: DfE reserves the right to take any of these steps whilst it undertakes relevant checks and tests. However, any steps taken will be removed if no action is subsequently required.

6.3: Where this policy applies to an employer-provider, action may have been taken under the funding higher-risk organisations and subcontractors policy. DfE may also take one or more of the actions listed in application of the grounds.

7. Circumstances for considering high-risk behaviour

7.1: This section sets out the circumstances in which an employer or a connected employer will be considered to be demonstrating high-risk behaviour.

Misleading information

7.2: An employer is demonstrating high-risk behaviour if it, a connected employer or a connected person has, in the reasonable opinion of DfE, negligently or deliberately provided misleading information that would influence decisions about any DfE funding or inclusion on any DfE register that benefits the employer.

Employer agreements and breach of contract

7.3: An employer is demonstrating high-risk behaviour if it:

(a) is in material or significant breach (as determined by the employer agreement) of one or more terms of its employer agreement or a funding rule, including but not limited to the funding higher-risk organisations and subcontractors policy and has failed, or is unable, to comply with DfE’s requirements or additional conditions to improve or rectify the breach to the satisfaction of DfE

(b) has in the last 5 years previously had any contract or legal agreement with DfE terminated as a consequence of falling within one or more of the criteria specified in this policy, and has not been able to present sufficient evidence to satisfy DfE that there would be no risk to public funds

(c) has a connected person who has:

• held or holds an equivalent or reasonably comparable position with another employer, provider or organisation that has had (in relation to any DfE funding) a contract for services, a grant funding agreement or an apprenticeship agreement with DfE terminated early

• been found by DfE to demonstrate high-risk behaviour, or have demonstrated high-risk behaviour in the previous 5 years, the evidence of which has been shared with the employer

(d) no longer meets the criteria or conditions of use of service operated by DfE in order to allow access to funds

(e) has breached the apprenticeship service terms and conditions that it signed when the apprenticeship service account was created, specifically, but not limited to those relating to access, data security, active trading and pay-as-you-earn (PAYE) scheme usage

(f) has not kept apprenticeship service information up to date, including the statements and declarations made as part of the apprenticeship service registration

(g) does not co-operate with DfE processes or provides misleading, inaccurate, incomplete or inadequate data or information, indicating inadequacies, and where validation and investigation of this information shows malicious intent

(h) has had action taken against them under this policy previously and has continued to demonstrate high-risk behaviour in breach of this policy

(i) has not, where applicable, upheld an employer agreement to maintain the required standard of performance, and had been given adequate opportunity to improve performance and failed to do so

(j) starts or continues to use a training provider about which DfE has made a determination that the training provider has breached the funding higher-risk organisations and subcontractors policy or the apprenticeship funding legal agreement for training providers

(k) data submitted by the employer or the training provider has given DfE reason to be concerned, including about the data itself or its accuracy, or DfE decides that the explanation given by the employer or connected employer is not satisfactory, or, having raised such issues with the employer, the employer still exhibits high-risk behaviour. This includes, but is not limited to:

• inconsistencies in the standards selected, or the recruitment for, a business sector

• a change in the size or quantity of the standards being employed against, or a change to high-value or short-duration standards

DfE registers

7.4: An employer is demonstrating high-risk behaviour if it, a connected employer or a connected person:

(a) no longer meets the entry criteria or conditions of acceptance for registers operated by DfE in order to allow access to funds

(b) has been removed from one or more of DfE registers

(c) has failed to have appropriate systems in place to ensure that any changes to the statements and declarations made as part of a register entry process can be identified and reported to DfE as required

Change of ownership or control

7.5: An employer is demonstrating high-risk behaviour where it:

(a) undergoes a change in ownership or control that, in the reasonable opinion of DfE, may affect its ability to comply with the obligations of the employer agreement

(b) appoints a connected person who meets one of the grounds given in the circumstances for considering high-risk behaviour section

Investigations

7.6: An employer is demonstrating high-risk behaviour if either it or a connected employer or a connected person has been subject to prior investigations in which DfE has found grounds to take action, or is subject to an ongoing investigation.

7.7: An employer is demonstrating high-risk behaviour if it transpires that the employer or a connected employer or a connected person is not eligible to receive or reserve funding under an employer agreement as a result of an investigation by DfE.

Non-payment of monies owed

7.8: An employer is demonstrating high-risk behaviour where it, a connected employer or a connected person has failed to pay or repay any sum of money or funding owed or due to DfE or any other public body.

Insolvency or directors disqualification

7.9: An employer is demonstrating high-risk behaviour where it, a connected employer or a connected person:

(a) is bankrupt or the subject of insolvency or winding-up proceedings, where its assets are being administered by a liquidator or by a court, or where it is in an arrangement with creditors

(b) has been served with a public interest winding-up petition under section 124A of the Insolvency Act 1986

(c) is subject to a director disqualification order under the Company Directors Disqualification Act 1986 or subject to a Bankruptcy Restriction Order

Poor performance

7.10: An employer is demonstrating high-risk behaviour if either:

(a) DfE records indicate a demonstrable and consistent track record of previous underperformance on the part of the employer, a connected employer or a connected person and DfE has not received sufficient assurance of an acceptable level of improvement

(b) the employer, a connected employer or a connected person has shown significant or persistent deficiencies in the delivery of agreed activity and DfE has not received sufficient assurance of an acceptable level of improvement – DfE reserves the right to require the employer, at its own cost, to seek this assurance through an independent third party to be agreed by DfE

7.11: The underperformance or deficiencies could include but are not limited to:

(a) recurrent irregular spending or mismanagement of funds (where applicable) where DfE has raised concerns and the employer has not responded to the satisfaction of DfE

(b) delivery of poor-quality services or activity, or management or data provision that does not meet the standards expected by DfE as determined either by DfE or another external quality-assurance body

(c) the employer, a connected employer or connected person has been or is subject to the application of other sanctions and action has not resulted in the desired effect or there is insufficient assurance of any meaningful improvement, and DfE considers that the evidence available significantly undermines the contractual relationship between DfE and the employer

(d) the employer, a connected employer or a connected person does not engage with DfE processes or provides misleading, inaccurate, incomplete or inadequate data or information, indicating systemic inadequacies in capacity or its capability to deliver

(e) the employer, a connected employer or connected person is guilty of serious misrepresentation in providing any information to DfE

(f) the employer, a connected employer or a connected person is unable to meet or maintain the financial health requirements of one or more of the relevant funding streams to the satisfaction of DfE

(g) the employer, a connected employer or a connected person fails to reasonably pass payments on to other organisations as required by the relevant funding stream (this could include but is not limited to employers, subcontractors or end-point assessment organisations)

Professional misconduct

7.12: An employer is demonstrating high-risk behaviour if:

(a) DfE considers that the employer, a connected employer or a connected person has engaged in professional misconduct that brings into question the employer’s, connected employer’s or connected person’s integrity (as applicable)

(b) a court, regulator or other authority has ruled that the employer, a connected employer or a connected person has engaged in such professional misconduct

7.13: ‘Professional misconduct’, for these purposes, includes dishonesty, impropriety or a serious breach of ethical or professional standards applicable to the employer, a connected employer or a connected person (whether those standards are mandatory or not).

Prohibition on participation in management

7.14: An employer is demonstrating high-risk behaviour if it has a connected person who:

(a) is subject to a ban under section 128 of the Education and Skills Act 2008

(b) has been removed from office by the Charity Commission or another charity regulator, or who appears on the Register of Removed Trustees

Acting improperly in a procurement

7.15: An employer is demonstrating high-risk behaviour if DfE considers that the employer, a connected employer or a connected person has acted improperly in relation to any procurement and, in so doing, has put itself at an unfair advantage in relation to the award of a public contract.

Disclosure and Barring Service

7.16: An employer is demonstrating high-risk behaviour if there is evidence that the employer has not carried out the appropriate Disclosure and Barring Service (DBS) checks required in the employer agreement or funding rules.

Competition law infringements

7.17: An employer is demonstrating high-risk behaviour if the Competition and Markets Authority has made a decision under the Competition Act 1998 that the Chapter I prohibition (within the meaning given by section 2 of that act) has been infringed by an agreement or concerted practice:

(a) to which the employer, a connected employer or a connected person was party, and

(b) that was a cartel (within the meaning given by paragraph 4(1) of schedule 8A to that act)

Misconduct in relation to tax

7.18: An employer is demonstrating high-risk behaviour if:

(a) the employer, a connected employer or a connected person has been liable to a penalty under either:

• section 69C of the Value Added Tax Act 1994 (transactions connected with VAT fraud) except where the penalty is reduced under section 70 of that act
• section 25 of the Finance Act 2003 (evasion of tax or duty)

(b) a penalty has been payable by the employer, a connected employer or a connected person under either:

• schedule 24 to the Finance Act 2007 (errors in tax documentation), but only where the conduct giving rise to that penalty was deliberate
• schedule 41 to the Finance Act 2008 (failure to notify and certain VAT and excise wrongdoing), but only where the conduct giving rise to that penalty was deliberate

(c) the employer, a connected employer or a connected person has both:

• entered into or carried out tax arrangements that are abusive (within the meaning given in section 207 of the Finance Act 2013)
• made adjustments accordingly under section 209 of that Act (countering tax advantages), including as it applies under section 10 of the National Insurance Contributions Act 2014

(d) the employer, a connected employer or a connected person has been found by His Majesty’s Revenue and Customs (HMRC), in exercise of its powers in respect of VAT, to have engaged in an abusive practice

(e) the employer, a connected employer or a connected person has incurred a defeat in respect of notifiable tax arrangements they have entered into (with ‘defeat’ and ‘notifiable tax arrangements’ having the meanings given in paragraph 40 of schedule 6 to the Procurement Act 2023)

Labour market misconduct

7.19: An employer, a connected employer or a connected person is demonstrating high-risk behaviour if any of the following orders has been made against them:

(a) a slavery and trafficking prevention order, an interim slavery and trafficking prevention order, a slavery and trafficking risk order or an interim slavery and trafficking risk order under part 2 of the Modern Slavery Act 2015

(b) a trafficking and exploitation prevention order, an interim trafficking and exploitation prevention order, a trafficking and exploitation risk order or an interim trafficking and exploitation risk order under part 4 of the Human Trafficking and Exploitation (Scotland) Act 2015

(c) a slavery and trafficking prevention order or an interim slavery and trafficking prevention order under schedule 3 to the Human Trafficking and Exploitation (Criminal Justice and Support for Victims) Act (Northern Ireland) 2015)

(d) a labour market enforcement order under section 18 of the Immigration Act 2016

7.20: An employer, a connected employer or a connected person is demonstrating high-risk behaviour if DfE considers there is sufficient evidence that it has engaged in conduct (whether in or outside the United Kingdom) constituting an offence referred to in:

(a) section 1, 2, 4 or 30 of the Modern Slavery Act 2015

(b) section 1, 4 or 32 of the Human Trafficking and Exploitation (Scotland) Act 2015

(c) section 1, 2 or 4 of the Human Trafficking and Exploitation (Criminal Justice and Support for Victims) Act (Northern Ireland) 2015, or paragraph 16 of schedule 3 to that act

Offences

7.21: An employer is demonstrating high-risk behaviour if it, a connected employer or a connected person has been convicted of any of the following offences:

Corporate manslaughter or corporate homicide

(a) An offence under section 1 of the Corporate Manslaughter and Corporate Homicide Act 2007 (corporate manslaughter or corporate homicide).

Terrorism

(b) An offence listed in section 41 or 42 of the Counter-Terrorism Act 2008 (terrorism offences, and offences having a terrorist connection, in respect of which the notification requirements under part 4 of that act apply), other than an offence under section 54 of that act.

Theft, fraud, bribery, etc

(c) An offence at common law in Scotland of theft, fraud, extortion, robbery, theft by housebreaking, housebreaking with intent to steal, uttering, embezzlement or reset.

(d) An offence at common law of conspiracy to defraud.

(e) An offence under any of the following sections of the Theft Act 1968:

• sections 1 to 13 (theft, robbery, burglary, etc)
• sections 17 to 21 (fraud and blackmail)
• sections 22 and 23 (offences relating to stolen goods)
• section 24A (dishonestly retaining a wrongful credit)
• section 25 (going equipped for stealing etc)

(f) An offence under any of the following sections of the Theft Act (Northern Ireland) 1969:

• sections 1 to 13 (theft, robbery, burglary, etc)
• sections 17 to 20 (fraud and blackmail)
• sections 21 and 22 (offences relating to stolen goods)
• section 23A (dishonestly retaining a wrongful credit)
• section 24 (going equipped for stealing etc)

(g) An offence under section 3 of the Theft Act 1978 (making off without payment).

(h) An offence under section 5 of the Theft (Northern Ireland) Order 1978 (making off without payment).

(i) An offence under article 172 or 172A of the Road Traffic (Northern Ireland) Order 1981 (taking vehicle without authority etc.).

(j) An offence under section 58 of the Civic Government (Scotland) Act 1982 (convicted thief in possession).

(k) An offence under section 113 of the Representation of the People Act 1983 (bribery of electors).

(l) An offence under section 178 of the Road Traffic Act 1988 (taking motor vehicle without authority etc.).

(m) An offence under section 327, 328 or 329 of the Proceeds of Crime Act 2002 (money laundering offences).

(n) An offence under section 2, 3, 4, 6 or 7 of the Fraud Act 2006 (fraud offences).

(o) An offence under section 993 of the Companies Act 2006 (fraudulent trading).

(p) An offence under section 1, 2 or 6 of the Bribery Act 2010 (bribery offences).

(q) An offence under section 49 of the Criminal Justice and Licensing (Scotland) Act (offences relating to articles for use in fraud).

Labour market, slavery and human trafficking offences

(r) An offence under the Employment Agencies Act 1973 (offences relating to employment agencies) other than an offence under section 9(4)(b) of that act.

(s) An offence under the Employment (Miscellaneous Provisions) (Northern Ireland) Order 1981 (offences relating to employment agencies) other than an offence under article 7B(11) of that order.

(t) An offence under section 31(1) of the National Minimum Wage Act 1998 (refusal or wilful neglect to pay the national minimum wage).

(u) An offence under the Gangmasters (Licensing) Act 2004 (offences relating to gangmasters).

(v) An offence under section 1, 2, 4 or 30 of the Modern Slavery Act 2015 (slavery and human trafficking offences).

(w) An offence under section 1, 4 or 32 of the Human Trafficking and Exploitation (Scotland) Act 2015 (slavery and human trafficking offences).

(x) An offence under section 1, 2 or 4 of the Human Trafficking and Exploitation (Criminal Justice and Support for Victims) Act (Northern Ireland) 2015, or paragraph 16 of schedule 3 to that act (slavery and human trafficking offences).

(y) An offence under section 27 of the Immigration Act 2016 (failure to comply with labour market enforcement order).

Organised crime

(z) An offence under section 28 of the Criminal Justice and Licensing (Scotland) Act 2010 (agreeing to become involved in serious organised crime).

(aa) An offence under section 45 of the Serious Crime Act 2015 (participating in the activities of an organised crime group).

Tax offences

(bb) An offence at common law of cheating the public revenue.

(cc) An offence under the law of any part of the United Kingdom consisting of being knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of a tax (‘tax’ meaning any tax imposed under the law of any part of the United Kingdom including National Insurance contributions).

(dd) An offence under section 45 or 46 of the Criminal Finances Act 2017 (failure to prevent facilitation of tax evasion).

Cartel offence

(ee) An offence under section 188 of the Enterprise Act 2002 (cartel offence).

Other offences

(ff) An offence under sections 6A (false representations), 206 to 211 (fraud, deception), 251 and 353 to 360 (wrongdoing) of the Insolvency Act 1986.

(gg) An offence under sections 386 to 389 (duty to keep accounting records) of the Companies Act 2006.

(hh) An offence under sections 15, 21 and 22 of the Immigration and Asylum Act 2006.

(ii) An offence under sections 34 to 38 of the Immigration Act 2016.

(jj) A criminal offence under the Health and Safety at Work etc Act 1974.

(kk) Any offence that relates to intolerance or hatred on the grounds of race, religion or sexual orientation.

(ll) Any offence relating to the viewing, taking, making, possessing or publishing of any indecent photograph or image of a child.

(mm) Any offence under sections 327 to 333 of the Proceeds of Crime Act 2002.

Ancillary offences

(nn) In relation to an offence otherwise referred to in the offences section, any of the following offences:

• aiding, abetting, counselling or procuring the commission of the offence
• in Scotland, being art and part in the commission of the offence
• an offence under part 2 of the Serious Crime Act 2007 (encouraging or assisting crime) in relation to the offence
• inciting a person to commit the offence
• attempting or conspiring to commit the offence

Offences committed outside the United Kingdom

(oo) An offence under the law of a country or territory outside the United Kingdom that would be an offence otherwise referred to in the offences section if the conduct constituting that offence was carried out in any part of the United Kingdom.

National security

7.22: An employer, a connected employer or a connected person is demonstrating high-risk behaviour if DfE determines that it poses a threat to the national security of the United Kingdom.

Annex: Definitions and interpretation

In this policy, the following terms have the following meanings:

Apprentice: A person who works under an apprenticeship agreement.

Apprenticeship: A job with training. This includes the training and (where required) end-point assessment for an employee. The full definitions of (i) an English apprenticeship (frameworks) and (ii) 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, either in accordance with the Apprenticeships, Skills, Children and Learning Act 2009 sections 32 to 36 (for frameworks) or section A1 (for standards – an approved English apprenticeship agreement).

Apprenticeship details: The details of the apprentice and their apprenticeship, including but not limited to the apprenticeship standard; the agreed cost of the training and end-point assessment; the apprentice’s name, date of birth and unique learner number and the apprenticeship start date.

Apprenticeship levy: The levy payable by all employers with an annual pay bill of more than £3 million that is used to support the funding of apprenticeships.

Apprenticeship service: The digital apprenticeship service provided by DfE to manage and fund apprenticeship training approved by employers and delivered by training providers listed on the apprenticeship provider and assessment register (APAR).

Apprenticeship service account: The part of the apprenticeship service where the employer can add apprenticeship details and see information about funding and apprentices they have previously added to their account.

Co-investment: Sharing the cost of training and assessing apprentices with the government. The following types of employer will pay co-investment:

• non-levy payers
• levy payers who have run out of levy funds

For apprenticeships that started on or after 1 April 2019, employers pay 5% towards the cost of apprenticeship training. The government will pay the rest (95%).

Connected employer: Any entity (being a distinct legal entity from the employer) that is connected with the employer within the meaning of schedule 1, parts 1 and 2 of the National Insurance Contributions Act 2014, and which, not being a contracting party to this agreement, carries out activities on behalf of the employer in relation to the apprenticeship service or employs an apprentice whose training is funded through the employer’s apprenticeship service account.

Connected person: Any of the following:

• a person (or that person together with other persons connected with them) with ‘significant control’ over the employer (within the meaning given by section 790C(2) of the Companies Act 2006)

• a director, shadow director, governor or trustee of the employer

• a parent undertaking or a subsidiary undertaking of the employer (within the meanings given in section 1162 of the Companies Act 2006) or any subsidiary undertaking of the parent undertaking

• a predecessor company

• any other person who can reasonably be considered to be in an equivalent position in relation to the employer as those described in the previous 4 points.

• any person with the right to exercise, or who actually exercises, significant influence or control over the employer, or who has powers of representation, decision, influence, management or control, including through a blind trust, partner organisation or parent organisation

• any person over which the employer has the right to exercise, or actually exercises, significant influence or control, or over which the employer has powers of representation, decision, influence, management or control including through a blind trust, partner organisation or parent organisation

Department: The Secretary of State for Education acting through the Department for Education

Employer: Any organisation, public or private, that enters into a contract with a training provider to commission training for its own apprentices, or on behalf of a connected employer for the connected employer’s apprentices

Employer agreement: A legally binding agreement between an employer and DfE. Employers must accept this agreement to receive or reserve apprenticeship funding.

Employer-provider: Any organisation that meets all of these requirements:

• provides its own staff with some or all of the off-the-job training as part of an apprenticeship
• holds a funding agreement and an employer agreement with DfE
• receives funding from DfE through its apprenticeship service account or government-employer co-investment

Funding: The funding paid to the training provider by DfE on behalf of the employer towards the cost of training and end-point assessment.

Funding rules: DfE’s rules for funding apprenticeships, as revised and amended from time to time.

Guidance: Any applicable guidance or directions with which the employer is bound to comply

Officer in charge: A person who is in the top 2 tiers of the employer’s management team.

Predecessor company: A company to which any of these apply:

• became insolvent or ceased to trade
• before it ceased to trade, carried on the same or substantially the same business as the employer
•  has transferred all or substantially all its assets to the employer
• had at least one director or shadow director who is or has been a director or shadow director of the employer

A ‘shadow director’ has the meaning given in section 251 of the Companies Act 2006.

Training: The delivery of training and on-programme assessment and, where relevant, end-point assessment by the training provider and, where relevant, the end-point assessment organisation for one or more apprentices.

Training provider: An organisation listed on the apprenticeship provider and training provider register that has a contract with the employer to provide training to one or more apprentices.