Who can be funded?

How to work out who can get apprenticeship funding. Includes financial support for apprentices with additional learning needs.

Who can be funded?

Individuals who are eligible for funding

New for 1 August 2022:

  • We have moved the rule that relates to financial contributions by an apprentice to a new sub-section under ‘Paying for an apprenticeship’.

  • Due to the increase in home-working, we are reviewing the rules on time spent working in England and will update the rules in due course.

  • We have moved the rule that relates to an apprentice becoming unemployed or self-employed during the apprenticeship to the ‘Individuals who are not eligible for funding’ section.

New for 30 September 2022 - version 2

  • EP71 to EP72 - New rule: We have updated the rules to reflect that from 30 September 2022, prisoners can access apprenticeships under alternative arrangements.

EP61

You are responsible for checking the eligibility of the individual at the start of their apprenticeship programme. You can only use funds in your apprenticeship service account, or government-employer co-investment, for those who are eligible. You must retain evidence of the individual’s eligibility.

EP62

To use funds in your apprenticeship service account or government-employer co-investment, the individual must:

  • EP62.1 Start their apprenticeship after the last Friday in June of the academic year in which they have their 16th birthday.

  • EP62.2 Be able to complete the apprenticeship within the time they have available. If you know an individual is unable to complete the apprenticeship in the time they have available, they must not be funded.

  • EP62.3 Not use a student loan to pay for their apprenticeship. Where an individual transfers to an apprenticeship from a full-time further education or higher education course and that course has been funded by a student loan, the loan must be terminated by the individual and you must be satisfied that this has occurred.

  • EP62.4 Spend at least 50% of their working hours in England over the duration of the apprenticeship.

    • EP62.4.1 When determining eligibility at the start of the apprenticeship, you must be confident that the apprentice will spend at least 50% of their working hours in England over the duration of the apprenticeship. For working hours to be counted in the 50% limit, they must be regular, planned and known at the start of the apprenticeship. Refer to Annex A (paragraph EP374) for exceptions to this rule.

    • EP62.4.2 You must make separate arrangements with the relevant devolved administration if you are planning to deliver apprenticeships to individuals who spend more than 50% of their working hours in a devolved administration over the duration of their apprenticeship, including time spent on off-the-job training.

  • EP62.5 Have the right to work in England.

  • *EP62.68 Have an eligible residency status (information can be found in the residency eligibility section in Annex A).

EP63

You can only use funds from your apprenticeship service account or employer-government co-investment for apprentices employed by you or a connected company or charity as defined by HMRC. This also applies where the apprentice is funded by a transfer of funds from another employer.

EP64

You must give accurate unique learner number (ULN) information to the apprenticeship service, awarding organisations and end-point assessment organisations and ensure all information used to register an apprentice is correct.

EP65

We will fund an apprentice to undertake an apprenticeship at a higher level than a qualification they already hold, including a previous apprenticeship.

EP66

We will fund an apprentice to undertake an apprenticeship at the same or lower level than a qualification they already hold, if the apprenticeship will allow the individual to acquire substantive new skills and you can evidence that the content of the training is materially different from any prior qualification or a previous apprenticeship. More information is detailed in paragraph EP315.3.

EP67

The age of the apprentice on the day they start their apprenticeship will be used for all age-based eligibility criteria for that apprenticeship.

EP68

An apprentice’s eligibility will not change during the apprenticeship unless their employment status also changes.

EP69

You must reassess an individual for any new apprenticeship.

EP70

If the apprentice is made redundant, we will continue to fund employer-providers to deliver their training, even if they cannot find another employer, in the circumstances below:

  • EP70.1 Apprentices who are made redundant on or after 15 October 2020 and are either within six months of the final day of the apprenticeship practical period OR they have completed at least 75% of the apprenticeship practical period. These apprentices will be funded to completion (subject to the conditions set out in paragraph EP269).

  • EP70.2 Apprentices who do not meet the conditions of paragraph EP70.1above. We will fund the training of these apprentices for 12 weeks while they seek a further apprenticeship agreement (subject to the conditions set out in paragraph EP258).

EP71

Where an individual is in prison, to be eligible for apprenticeship funding they must:

  • EP71.1start their apprenticeship on or after 30 September 2022; and

  • EP71.2 be eligible for Release on Temporary Licence (RoTL) to undertake their apprenticeship

EP72

It is intended that prisoners will complete part of their training while in custody and part after release into the community. As a minimum, however, no prisoner apprentice may undertake end-point assessment prior to release.

EP73

Military prisoners, immigration detainees and prisoners on remand are ineligible for the type of apprenticeship offered in prisons.

Individuals who are not eligible for funding

New for 1 August 2022:

  • EP77.1 - Clarification: The government intends to bring forward legislation later in the year to allow prisoners to access apprenticeship opportunities.

  • EP77.2 - New rule: To reflect that individuals who are self-employed as a sole trader are ineligible for funding (this previously said self-employed).

  • EP77.3 - New rule: To reflect that a shareholder / director with no separate identifiable line-manager to undertake the role of ‘employer’ is ineligible for funding. The same person must not sign the apprenticeship agreement as both the apprentice and the employer.

  • EP77.3.1 - New rule: To reflect that if during their programme an apprentice becomes unemployed, self-employed as a sole trader, or becomes a shareholder / director with no separate identifiable person to undertake the role of employer, they will no longer be eligible for funding and must be reported on the ILR as having withdrawn from the apprenticeship. If the apprentice has been made redundant, see paragraph EP70.

New for 30 September 2022 - version 2

We have removed the rule about prisoners not being eligible for apprenticeships to reflect legislation which from 30 September 2022, enables prisoners to access apprenticeships under alternative arrangements.

EP74

You must not claim funding for individuals who do not meet the eligibility criteria set out in this document unless they are eligible under the Education (Fees and Awards) (England) Regulations 2007 (as amended). You must not claim for individuals who:

  • EP74.1 Are here illegally;

  • EP74.2 Are resident in the United Kingdom on a student visa unless they are eligible through meeting any other of the categories described in Annex A;

  • EP74.3 Are in the United Kingdom on holiday, with or without a visa;

  • EP74.4 Have overstayed their immigration or visitor visa;

  • EP74.5 Are a family member of a person granted a student visa, have been given immigration permission to stay in the UK and have not been ordinarily resident in the UK for the previous three years on the first day of learning;

  • EP74.6 Are ordinarily resident in the Channel Islands or Isle of Man, unless they are also ordinarily resident within England; or

  • EP74.7 Have a biometric residence permit or residence permit imposing a study prohibition or restriction on the individual.

EP75

To use funds in your apprenticeship service account or government-employer co-investment, the individual must not:

  • EP75.1 Be undertaking another apprenticeship;

  • EP75.2 Be undertaking training funded through the Adult Education Budget (AEB), where that training will:

    • EP75.2.1 Replicate vocational and other learning aims covered by the apprenticeship, including English and maths;

    • EP75.2.2 Offer career related training that conflicts with the apprenticeship aims; or

    • EP75.2.3 Be taking place during working hours. Where an apprentice has more than one job, working hours refers to the hours of the job the apprenticeship is linked to.

  • EP75.3 Be in receipt of any other direct DfE funding during their apprenticeship programme; this includes any other DfE funded FE / HE programme including programmes funded by a student loan, but excludes funding outlined in EP75.2; or

  • EP75.4 Undertake any part of an apprenticeship whilst on a sandwich placement as part of a degree programme.

EP76

As an exception to EP75.2, an individual may commence an apprenticeship and attract funding, where they have less than four weeks to completion of an existing DfE funded course.

EP77

To use funds in the employer’s apprenticeship service account or government-employer co-investment, the individual must also not be:

  • EP77.1 A prisoner in custody or a prisoner released on temporary license.

    • EP77.1.1 The policy of the Ministry of Justice is that prisoners, both in custody and released on temporary license, cannot sign a contract of employment. As this cohort is not covered under the Alternative English apprenticeship arrangements, they are not eligible for funding (see paragraphs EP32 to EP33).

    • EP77.1.2 The government intends to bring forward legislation later in the year to allow prisoners to access apprenticeship opportunities.

  • EP77.2 Self employed as a sole trader (a person who conducts business by their own personality and not with any other corporate personality).

  • EP77.3 A shareholder/director with no separate identifiable line manager to undertake the role of ‘employer’, as defined by these funding rules. By this we mean it is prohibited for someone to sign a contract, including an apprenticeship agreement, as both the apprentice and as the employer (even where a limited company, public services company, a partnership, or limited liability partnership has been created to act as a separate corporate entity).

    • EP77.3.1 During the programme, if an apprentice becomes unemployed, self-employed as a sole trader, or becomes a shareholder / director with no separate identifiable person to undertake the role of employer, they will at that point no longer be eligible for funding and you must report them as having withdrawn from the apprenticeship on the ILR. If the apprentice has been made redundant, see paragraph EP70.

Apprentices who need access to learning support

EP78

Learning support funding is available to meet the costs of putting in place reasonable adjustments, as set out in section 20 of the Equality Act 2010, for apprentices who:

  • EP78.1 Have a learning difficulty or disability as defined in section 15ZA(6) of the Education Act 1996 (as amended by section 41 of the Apprenticeships, Skills, Children and Learning Act 2009) and detailed below:

    • 6) For the purposes of this section a person has a learning difficulty [or disability] if—

    • (a) the person has a significantly greater difficulty in learning than the majority of persons of the same age, or

    • (b) the person has a disability which either prevents or hinders the person from making use of facilities of a kind generally provided by institutions providing education or training for persons who are over compulsory school age.

  • EP78.2 And, as a result of this learning difficulty or disability, require reasonable adjustments in order to complete their apprenticeship, including any reasonable adjustments to complete English and maths requirements and end-point assessment.

EP79

In relation to paragraph EP78 this can include apprentices who have not previously had a learning difficulty or disability identified, but in relation to whom the employer-provider has identified a learning difficulty or disability (as defined in Section 15ZA(6) of the Education Act 1996) that would directly affect the apprentice’s ability to complete their apprenticeship.

EP80

Before a claim for learning support funding can be made, a further detailed assessment (see paragraph EP96.5.1) may need to be undertaken to identify whether an apprentice has a learning difficulty or disability that directly impacts their ability to complete the apprenticeship on which they are enrolled.

EP81

Where the assessment identifies a need for reasonable adjustments to enable the apprentice to complete their apprenticeship and where the provision of reasonable adjustments will incur costs to the employer-provider, this must be clearly evidenced and documented. This must include:

  • EP81.1 Documented evidence demonstrating the apprentice’s learning difficulty or disability;

  • EP81.2 A documented assessment of how progress towards completion of the apprenticeship would be directly impacted without the reasonable adjustments being put in place;

  • EP81.3 Details of the reasonable adjustments necessary to enable the apprentice to complete their apprenticeship; and

  • EP81.4 A documented and clear plan for delivering the reasonable adjustments throughout the apprenticeship. This must be agreed and signed-off by the apprentice.

  • All of this evidence must be in place and the reasonable adjustments being delivered, in order to qualify for learning support funding for each month that it is claimed. Further details about the evidence requirements can be found in paragraph EP317.

EP82

A learning difficulty or disability that does not require reasonable adjustments or cannot be evidenced as directly impacting on the apprentice’s ability to complete their apprenticeship will not be eligible for learning support funding. Learning support is not available:

  • EP82.1 To deal with everyday difficulties, which includes the definition as per Section 15ZA(7) of the Education Act 1996, that are not directly associated with the apprenticeship. (If an apprentice needs help at work, they may be able to get help from Access to Work).

  • EP82.2 To address any learning gaps in an apprentice’s prior knowledge, skills, or behaviours where these are relevant to their apprenticeship, but where there is no identified learning difficulty or disability in respect of obtaining this learning (see paragraph EP78).

  • EP82.3 Where there are no costs incurred in putting in place reasonable adjustments.

EP83

Once reasonable adjustments have been put in place for an apprentice with a learning difficulty or disability, you must:

  • EP83.1 Deliver the support to meet the reasonable adjustments and confirm the continuing necessity and appropriateness of these reasonable adjustments on a monthly basis;

  • EP83.2 Record and retain the appropriate evidence to demonstrate that the actions in paragraph EP83.1 have been completed, that the requirements for claiming learning support funding are met and that outcomes are recorded (as per paragraph EP317); and

  • EP83.3 Report in the ILR that the apprentice requires learning support along with the period for which this is required.

EP84

Learning support funding can only be claimed for each month in which reasonable adjustments are provided to the apprentice and where evidence of costs can be provided. For months in which no reasonable adjustments are necessary, or no costs have been incurred, a claim for learning support funding must not be made.

EP85

Learning support funding is fixed at a monthly rate of £150. It will be paid in the months in which reasonable adjustments are necessary and delivered, where they are evidenced and where this has been reported in the ILR. If your costs exceed £150 per month, but are less than £19,000 per annum, you can claim the additional costs via the earnings adjustment statement (EAS). In claiming these additional costs, you must retain evidence of the reasonable adjustments being delivered and their associated costs. You can find further information on the EAS on GOV.UK.

EP86

You must promptly claim for learning support funding through the ILR and the EAS. We will not pay you for claims from a previous funding year if you do not claim on time. The deadline for claiming is by the last ILR collection for each funding year.

Monitoring

EP87

We will monitor the number of apprentices for whom providers claim learning support funding. We recognise that levels of learning support funding claims will vary between providers due to a range of factors. However, we reserve the right to examine and investigate claims made. Where it is appropriate to do so, we will take action where claims do not meet the eligibility criteria, where evidence is not provided or where the terms and conditions of apprenticeship funding are not being met. These terms and conditions are set out in these funding rules and the ESFA Provider Agreement.

Apprentices who need access to exceptional learning support (ELS)

EP88

Apprentices who need significant levels of support to start or continue learning can get access to exceptional learning support if their support costs more than £19,000 in a funding year.

EP89

You must submit ELS claims to us at the beginning of the apprentices programme, or when you identify the apprentice requires support costs of more than £19,000 in the funding year, by completing and sending the ELS claim form so we can authorise your request. You can access the exceptional learning support cost form on GOV.UK.