What can be funded?

What you can pay for with apprenticeship funds. Includes English and maths training, support for care leavers and end-point assessments.

Eligible costs

New for 1 August 2022:

• We have removed the reference to the Hub.

• P103.1 - New rule: We have added initial assessment as an eligible cost.

• P103.2 - Clarification: We have added what we mean by off-the-job training costs (some text has been taken from the eligible costs consultation document). In relation to the costs of an employer supporting or mentoring an apprentice, we have been clear that the activity must be required by the standard and part of the agreed training plan. The employer can only receive funding for this activity if they are a supporting provider or an employer-provider (i.e. on ROATP).

• Update: We have deleted the terminology of a licence to practise. For funding purposes, a qualification will either be a mandatory qualification or a non-mandatory qualification and we have explained, as part of the off-the-job training cost, how these will be funded.

• Restructure: We have moved the rule relating to self-directed distance learning to the off-the-job training section.

• P103.3.2 - Clarification: We have named the only standard that eligible accommodation costs relate to.

• P103.4.2 - New rule: We are limiting the costs associated with this area to one re-sit.

• P103.5 - New sub-heading: We have changed the heading of ‘administration’ to ‘Programme governance, management and administration’ to reflect the feedback from the eligible costs review that the included activities are not necessarily carried out by administrative staff. We have added in examples of what can be included in this section. Updated for version 1.

• P104.1 - Clarification: We have clarified that estimate EPA costs must not be entered into the ILR (rule already in the EPA section).

• P104.2 - Clarification: We have clarified that the majority of training providers will operate on commercial terms and will expect to create a surplus (profit) which is a legitimate approach to take. Updated for version 1.

• P105 - New rule: We no longer require the actual delivery cost of the apprenticeship on the ILR and the apprenticeship service, where this figure is above the funding band. The price that you enter into both the ILR and the apprenticeship service is the funding that you are claiming from us (the maximum of the funding band minus the cost of any relevant RPL and any further discounts with the employer). You must enter the same price into the ILR and the apprenticeship service. You must make your own arrangements to collect any money due from the employer if the actual value is above the funding band maximum.

• P104 - Clarification: All changes to the total negotiated price must be agreed with the employer. By this we mean TNP1 OR TNP2 (not just the total of the two fields together).

P102

Apprentices can only be enrolled against an apprenticeship standard once it is identified as ‘approved for delivery’ on the Institute for Apprenticeships and Technical Education website.

• P102.1 New standards must have an EPAO in principle in place before public funding can be accessed for new apprentices.

• P102.2 You must make sure that the apprenticeship is eligible to access public funds in the employer’s apprenticeship service account or government-employer co-investment before the individual starts.

P103

Funds from an employer’s apprenticeship service account or government-employer co-investment must only be used for eligible costs directly related to the individual apprenticeship.

• P103.1 These funds must only be used to pay for training and assessment, including end-point assessment, to complete an apprenticeship that is eligible for funding up to the limit of the funding band.

• P103.2 For organisations that have been accepted onto the Register of End-Point Assessment Organisations eligible costs for end-point assessment (that can be included in field “TNP2” on the ILR) are set out in the Conditions of Acceptance document.

  • P103.2.1 You must not include the direct costs of end-point assessment in the TNP1 field on the ILR.

P104

For main providers eligible costs for the delivery of training and on-programme assessment (that can be included in field “TNP1” on the ILR) are limited to the following:

P104.1 Initial assessment:

P104.1.1 Initial assessment to confirm learner and programme eligibility (see paragraphs P23 to P24).

P104.1.2 Administration related to the subsequent enrolment (onboarding) of the apprentice. This can include the collection of evidence to support the initial assessment, supporting the employer with their apprenticeship service account and to complete the apprenticeship agreement; and developing and agreeing the training plan with the employer and apprentice.

P104.2 Off-the-job training

P104.2.1 Off-the-job training that meets the definition in paragraphs P41 to P42, delivered through a main provider, a supporting provider or an employer-provider (who must only claim actual costs). This can include:

• Relevant tutor costs (i.e. salary, on-costs, travel and subsistence claims). By on-costs we mean employer pension contributions and national insurance. Travel and subsistence costs must directly relate to apprenticeship delivery.

  • Delivery location costs (i.e. room hire or a proportionate contribution to the necessary facilities and overheads), that enable the delivery of off-the-job training to take place.

  • Learning materials used in the delivery of the apprenticeship (e.g. printed, audio / visual and electronic / interactive materials), including any relevant software licenses to access these materials where the licence cost is at apprentice level. Learning materials can be developed in-house or bought from a third party and can be refreshed periodically (e.g. to respond to revisions in the standard, learner and employer feedback).

  • Training associated with a mandatory qualification. Mandatory qualifications that comply with the mandatory qualifications policy will be fully funded; by this we mean we will fund the training content plus any peripheral costs such as registration, on-programme assessment, examination and certification (see paragraph E103.4.2).

  • Relevant training associated with a non-mandatory qualification. For a non-mandatory qualification we will only fund relevant training, where there is a clear overlap between the qualification and the knowledge, skills and behaviours needed for the apprenticeship; we will not fund training that is not relevant to the standard, or the registration, on-programme assessment, examination, or certification costs.

  • Costs of an employer supporting or mentoring an apprentice, where this is required by the standard and part of the agreed training plan; by this we mean the delivery of knowledge, skills and behaviours directly linked to the apprenticeship. The direct link must be documented as part of the off-the-job training evidence. The employer must be a supporting provider or an employer-provider who can receive apprenticeship funding (unless the exemption at paragraph P178.3 applies).

  • P104.2.2 Additional learning required to re-sit an exam linked to either a mandatory qualification or an end-point assessment.

  • P104.2.3 Costs of an apprentice taking part in any skills competition if the employer and main provider have agreed that participation in the competition directly contributes to helping that individual achieve the apprenticeship.

• P104.3 Materials and consumables

  • P104.3.1 Physical materials (non-capital items) used in the delivery of the apprenticeship. By this we mean the equipment or supplies necessary to enable a particular learning activity to happen (e.g. perishable ingredients for a catering apprenticeship). These items would not normally have a lifespan beyond the individual apprenticeship being funded. Personal protective equipment that is exclusively used in the training environment can also be included.

  • P104.3.2 Accommodation costs for training delivered through residential modules where the residential training is a mandatory requirement for all apprentices. By mandatory we mean that there is a specific requirement written into the apprenticeship standard or the end-point assessment which would apply equally to any apprentice, regardless of their location, employer, or main provider (including subcontractors). (Note as at 1 August 2022, this cost relates only to the Level 5 Advanced Dairy Technologist standard).

• P104.4 Peripheral costs including assessment

  • P104.4.1 Progress reviews involving the main provider, employer and apprentice to collectively discuss progress to date of the apprentice against the training plan and the immediate next steps required (see paragraphs P59 to P60).

  • P104.4.2 Peripheral costs associated with a mandatory qualification. These include registration, formative on-programme assessment costs, examination and certification costs, plus the cost of one re-sit (per mandatory qualification) where needed.

• P104.5 Programme governance, management and administration

  • P104.5.1 Programme governance, management and administration costs directly linked to training and assessment, including the end-point assessment. This can include for example:

• The costs relating to lesson planning, quality assurance and the management of subcontractors.

• Proportionate salary and on-costs of staff who are directly involved in the programme governance, management and administration of the apprenticeship programme.

• Administration costs of arranging the end-point assessment.

• The costs of collecting and reporting employer co-investment and the costs of using an apprenticeship software system to return management information (e.g. salary and on-costs of management information staff and the software licences to operate the MI system).

• For the nursing associate apprenticeship only, the costs of hosting an external placement . Note that hosting fees are separate from the delivery costs of training and on-programme assessment during a placement (see paragraph P106.2).

P105

The costs of taking part in any of the above activities may be included in the total negotiated price of training and on-programme assessment agreed by you and the employer (and entered by you in field TNP1 on the ILR).

• P105.1 The employer and the end-point assessment organisation agree the price of the end-point assessment (which is entered by the main provider in field TNP2 on the ILR only when the actual cost is known; estimate costs must not be entered).

• P105.2 The majority of training providers will operate on commercial terms and will expect to create a surplus (profit); a surplus ensures the financial viability of a business and can provide funds to e.g. fund ineligible costs, improve facilities and services and remain competitive. This is a legitimate approach to take. Commercial training providers are able to make a surplus (profit) on eligible costs, except for:

  • P105.2.1 Items that are procured from external sources. For example, if £500 of materials are bought by a main provider to be used in the delivery of a programme (e.g. perishable ingredients for catering apprenticeships), additional profit must not be charged on the £500 price of these materials.

  • P105.2.2 Delivery that is procured from a supporting provider. Note that this only relates to the specific fees charged by that supporting provider; you can still cover the costs of managing this subcontractor under the eligible cost of ‘Programme governance, management and administration’.

P106

When you agree a price with the employer, your starting point must be no more than the maximum of the funding band for the standard.

• P106.1 If the price you agree with the employer exceeds the maximum of the funding band, then you must agree off-line (outside of the ILR and apprenticeship service) how the employer will pay you any difference. We do not need to know about the amount of this difference. You may charge VAT on the difference.

• P106.2 The price you enter into the ILR and the apprenticeship service must be the same.

• P106.3 The price you enter into both the ILR and apprenticeship service is the maximum of the funding band, minus the costs of any relevant prior learning that you have agreed with the employer (see paragraphs P25 to P26). This new maximum funding amount becomes the starting point for any further negotiation on price with the employer. Additional discounts could be applied, for example, where the apprentice is part of a large cohort.

• P106.4 If either the TNP1 or the TNP2 price changes during the apprenticeship, the reason for this change must be documented in the evidence pack. All price changes must be agreed with the employer.

P107

Any of the eligible costs outlined in paragraph P103 can be bought in from a third party, including the apprentice’s employer and we will fund them.

• P107.1 Where the third party is the apprentice’s employer then only actual costs will be funded and these must be recorded.

• P107.2 Where you buy in the delivery of apprenticeship training and / or on-programme assessment from a third party (including the apprentice’s employer) this is subcontracting and you must follow the subcontracting rules in paragraphs P172 to P204.

• P107.3 Funds from an employer’s apprenticeship service account or government co-investment must not be used to fund other services (not listed above) from a third party.

Ineligible costs

New for 1 August 2022:

• P107 - New rules: We have restructured the section and added a number of new ineligible costs (for field TNP1) as a result of the eligible costs review – these costs did not previously appear in the funding rules. We have also tried to structure the ineligible costs, where possible, into main costs and employer costs. Updated for version 1.

• P107.5 - New rule: To reflect that costs associated with any further detailed assessment for learning support are ineligible. Learning support payments are funded separately. New for version 1.

• P107.9 - Clarification: We have expanded on the financial inducement information and provided examples.

New for 30 September 2022 - version 2

• P107.2.2 – Update: Personal protective clothing and safety equipment required by the apprentice to carry out their day-to-day work. (This was deleted in error from Version 1 but has appeared in previous versions of the funding rules).

• P107.2.5 – Clarification: We have clarified that Apprenticeship training agency fees (as well as Flexi-job apprenticeship agency fees) are ineligible costs.

P108

For main providers and the delivery of training and on-programme assessment, ineligible costs include the following:

• P108.1 Specific services not related to the delivery and administration of the apprenticeship (typical ‘provider’ costs)

  • P108.1.1 Lead generation activities (learner and employer recruitment) including:

• The costs associated with marketing and promotion activities;

• The use of brokers, levy consultants, internal sales teams or external referral services to source employer or learner leads;

• The costs of memberships or other costs paid to employers, or their representatives, associated with procurement registers or opportunities to secure business; or

• First-contact activity / light touch pre-screening activity that may take place prior to a full initial assessment. Information, advice and guidance delivery to individuals not suitable for an apprenticeship.

  • P108.1.2 The recruitment (including DBS checks) and continuing professional development of training provider staff involved in apprenticeships.

  • P108.1.3 Development of original teaching materials related to the delivery of a new apprenticeship offer. By this we mean the first time a main provider chooses to deliver a new apprenticeship standard.

  • P108.1.4 Main provider (or subcontractor) induction activities, which may include outlining behaviour expectations and issuing the apprentice with any workbooks, contact details, logins and passwords.

  • P108.1.5 Student support services, graduation ceremonies and celebration events.

  • P108.1.6 Wider business costs (e.g. insurance, rent / rates, utilities, building maintenance, phone systems, library service),and the cost of non-apprenticeship personnel (e.g. finance, HR, procurement), where these costs are not directly attributable to the apprenticeship programme.

• P108.2 Specific services not related to the delivery and administration of the apprenticeship (typical ‘employer’ costs)

  • P108.2.1 Employee expenses and benefits including

  • Apprentice wages;

  • Travel and subsistence costs for apprentices under any circumstances (including travel to off-the-job training); or

  • All accommodation costs including outward-bound activities and where the apprentice is resident away from their home base, because of the requirements of their day-to-day work or because this is convenient for the employer or main provider (or subcontractor).

  • P108.2.2 Personal protective clothing and safety equipment required by the apprentice to carry out their day-to-day work.

  • P108.2.3 The recruitment (including DBS checks) and continuing professional development of employer staff involved in apprenticeships.

  • P108.2.4 Employer induction activities for the apprentice.

  • P108.2.5 Apprenticeship training agency fees / Flexi-job apprenticeship agency fees.

  • P108.2.6 Student membership fees that are required by professional bodies, even where linked to a mandatory qualification.

  • P108.2.7 Any fees to awarding bodies for non-mandatory qualifications (qualifications that are not specifically listed in the standard). This includes registration, examination, certification and re-sit costs.

  • P108.2.8 Re-sit costs for a mandatory qualification, beyond the first re-sit (which is eligible).

  • P108.2.9 Any training, optional modules, educational trips, or trips to professional events in excess of those required to pass the end-point assessment and achieve the apprenticeship.

  • P108.2.10 Time spent by employees / managers supporting or mentoring apprentices, where this is not delivering training required as part of the apprenticeship (e.g. generic line management responsibilities).

  • P108.2.11 The creation of line manager resources

• P108.3 End-point assessment costs incurred by the main provider, including invigilation.

  • P108.3.1 All costs related to the end-point assessment (except for the administration of arranging the assessment) must be included in the price negotiated between the employer and the end-point assessment organisation (TNP2 field on ILR) and not included in the cost of training (TNP1 field on ILR).

• P108.4 English and maths up to level 2

  • P108.4.1 English and maths qualifications; these are funded separately and must not be included in the TNP1 price.

• P108.5 Learning support

  • P108.5.1 The costs associated with any further detailed assessment for learning support (see paragraph P77).

  • P108.5.2 Learning support payments; these are funded separately and must not be included in the TNP1 price.

• P108.6 Repeating the same regulated qualification where the apprentice has previously achieved it.

  • P108.6.1 Unless it is a requirement of the apprenticeship or for any GCSE where the apprentice has not achieved grade C, or 4, or higher.

• P108.7 Mock testing (relating to the end-point assessment) and exam revision (this activity does not meet the definition of off-the-job training e.g. the delivery of new and relevant skills).

• P108.8 Capital

  • P108.8.1 Capital purchases including lease agreements. Capital purchases are long-term assets that would have a lifespan beyond the apprenticeship being funded, such as land, buildings, machinery and ICT equipment (e.g. tablets and similar electronic devices and the purchase / set-up costs of an MI / e-portfolio system).

  • P108.8.2 Maintenance of capital purchases. This includes vehicle parts and labour, insurance and MOT.

  • P108.8.3 Depreciation

• P108.9 Financial inducements

  • P108.9.1 You must not pay financial inducements, or any other payment not authorised by us, to an apprentice, employer, another training provider or to an end-point assessment organisation in relation to any part of the apprenticeship programme. This includes bonus payments to apprentices or employers for signing up and / or completing a programme; and where an employer who tenders for provision wants apprenticeship funding to pay for training extras in excess of the apprenticeship requirements.

  • P108.9.2 You must not seek or accept financial inducements in relation to the apprenticeship programme.

P109

The ineligible costs listed above must not be included in the price that is agreed between you and the employer.

• P109.1 If you choose to use the profit (surplus) that you have legitimately earned from eligible costs, on any of these activities, you can choose to do so.

Additional payments

New for 1 August 2022:

• P114 - Restructure: To merge the paragraphs relating to when the employer element will be processed for 19 to 24 year olds.**

• P116 - Clarification: That all additional payments must be passed onto employers within 30 working days of receipt. We have removed the rule that the main provider must obtain written confirmation from the employer which verifies they have forwarded the relevant payment to them. Updated for version 1.

P117 - New Rule: Confirmation of the process to follow if providers are unable to pass on the employer payment. Updated for version 1.

• We have removed reference to incentive payments for hiring a new apprentice as these are not applicable to starts from 1 August 2022.

P110

You and the employer will receive a payment towards the additional cost associated with training if, at the start of the apprenticeship, the apprentice is:

• P110.1 Aged between 16 and 18 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August); or

• P110.2 Aged between 19 and 24 years old and has either an Education, Health and Care (EHC) plan provided by their local authority or has been in the care of their local authority as defined in paragraph P111.

P111

The apprentice will be eligible for a payment if they have been in the care of the local authority as defined in paragraph P111. See paragraphs P119 to P126 for more information on the care leaver’s bursary.

P112

A child in care is defined as:

• P112.1 An eligible child - a young person who is 16 or 17 and who has been looked after by a UK local authority / health and social care trust for at least a period of 13 weeks since the age of 14 and who is still looked after;

• P112.2 A relevant child - a young person who is 16 or 17 who has left care within the UK after their 16th birthday and before leaving care was an eligible child; or

• P112.3 A former relevant child - a young person who is aged between 18 and 21 (up to their 25th birthday if they are in education or training) who, before turning 18, was either an eligible or a relevant child.

P113

Before you claim and are paid any additional payments, you must have evidence that you are eligible for them in respect of each apprentice. You must check this and either their employer or the apprentice must provide you with evidence to keep in the evidence pack. You must then report the appropriate code in the ILR.

P114

Where these payments are for apprentices aged between 19 and 24 years old at the start of their apprenticeship (see paragraph P109.2), you must include consent from the apprentice to inform their employer that they have an EHC plan or that they have been in the care of their local authority and either:

• P114.1 A signed email or letter from a local authority appointed Personal Advisor to confirm they are a care leaver; or

• P114.2 Evidence of an EHC plan.

P115

Where a 19 to 24-year-old apprentice does not want to inform their employer that they were previously in care then you must report the appropriate code in the ILR. This will generate the funding for you but not the employer. You must not apply the co-investment waiver (see paragraph P127). This means that you must not record the code for the waiver in the ILR. Where the apprentice agrees to inform their employer that they were previously in care, you will receive the additional payments due to the employer.

P116

These payments will be paid as follows:

• P116.1 90 days after the apprentice starts, 50% will be paid if the apprentice is still undertaking their apprenticeship; and

• P116.2 365 days after the apprentice starts, the remaining 50% will be paid if the apprentice is still undertaking their apprenticeship.

P117

You must pass these payments on in full to the employer within 30 working days of receiving this funding from us. Where an apprentice is employed by an ATA / FJAA, any applicable additional payments must be paid to the ATA / FJAA.

P118

Where you have been unable to pass this payment onto the employer (for example, the employer has not responded to numerous requests for their bank details) then you must return this payment to us. On the Earnings Adjustment Statement (EAS) you will need to enter the payment as a negative Authorised Claim. The adjustment type would be “Authorised Claims - Additional payments for employer”. Information can be found in the EAS Guidance.

P119

We will monitor take-up of additional payments to identify any potential fraud or irregularity.

Care leavers bursary

P120

Apprentices are eligible to receive a £1,000 bursary payment if they have been in the care of a UK local authority as defined in paragraph P111.

P21

You must have evidence that the apprentice is eligible for this payment before you claim or are funded for any associated additional payments for you or the employer. This must be a signed email or letter from a local authority appointed personal advisor confirming that the apprentice is a care leaver.

P122

You must tell the apprentice that they are eligible for the bursary as a care leaver and give them the opportunity to declare that they would like to access the funding. This signed declaration (see paragraph P348.2 for more information) must allow the apprentice to confirm that they:

• P122.1 Understand that they are eligible for and would like to receive a bursary as a care leaver.

• P122.2 Understand that if they have been found to have accepted the payment incorrectly or if they are ineligible then the government will require it to be repaid.

• P122.3 Have not been paid a care leavers bursary before. This only includes the care leavers bursary paid by us; other local incentives do not apply.

P123

This is a one-off payment. An eligible apprentice must only receive this payment once. Therefore, an individual must not receive this funding again if they progress or start another apprenticeship. It is your responsibility to ensure that the apprentice has not received this payment previously before you pass it on. We will also monitor this to ensure that the apprentice receives this payment only once and may reclaim duplicate payments.

P124

You must include signed consent from the apprentice to inform their employer that they have been in the care of their local authority and tell the apprentice that their declaration will be used to generate additional payments to both the main provider and their employer to support their transition into work.

P125

Where a 19 to 24-year-old apprentice does not want to inform their employer that they were previously in care, then you must report the appropriate code in the ILR. This will generate the funding for you and the apprentice but not the employer. Where this is the case, you must not apply the co-investment waiver (see paragraph P127). This means that you must not record the code for the waiver in the ILR.

P126

The bursary payment, due to the apprentice, will be generated 60 days after they start. You must pass this on in full to the apprentice within 30 days of receiving this funding from the us.

P127

Once paid, you must evidence that the apprentice has received the bursary payment. This must be a signed confirmation from the apprentice and not a receipt of transaction.

Extra support for small employers

P128

The government will fund all of the apprenticeship training costs, up to the maximum value of the funding band for the apprenticeship, for employers employing fewer than 50 people if, on the first day of their apprenticeship, the apprentice is:

• P128.1 Aged between 16 and 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August); or

• P128.2 Aged between 19 and 24 years old and has either:

  • P128.2.1 an EHC plan provided by their local authority; or

  • P128.2.2 been in the care of their local authority as defined in paragraph P111.

P129

You must not request any employer contribution (see paragraphs P208 to P214) to the cost of an apprenticeship, up to the maximum value of the funding band, if an employer employing fewer than 50 people recruits an eligible apprentice.

P130

Before any apprenticeship starts, you must have evidence that the apprentice and employer are eligible for the waiving of the employer contribution. The employer must provide evidence that they employed an average of 49 or fewer employees in the 365 days before the apprentice was recruited (using the calculation set out in paragraph P130) and you must keep this in the evidence pack.

P131

We define the number of employees as the number of people with a contract of service. This must be calculated using the average number of employees with a contract of service in the 365 days before the apprentice is recruited. If the average number of employees is 49 and the recruitment of an apprentice takes this number to 50, the employer will still be eligible to receive this extra support. However, if the average number of employees is 50 and the recruitment of apprentices takes this number to 51, the employer will not be eligible to receive this extra support.

P132

If the price negotiated by you and the employer is above the maximum value of the funding band for the apprenticeship, the employer must pay in full the difference between the band maximum and the negotiated agreed price. This cannot be funded from an employer’s apprenticeship service account.

Support for English and maths training

New for 1 August 2022:

• P133 - Clarification: We have clarified that English and / or maths must be provided for all apprentices where they do not have prior attainment in these subjects at level 2.

• P135.1 and P139.1 - New rule: To reflect the policy change that level 2 apprentices who do not have level 1 in English and maths must prioritise achieving level 1 in these subjects and are only required to work towards level 2 English and maths where they have time remaining to make meaningful progress, once they have achieved level 1. The requirement for apprentices assessed at level 1 but without a level 1 qualification to take level 2 before achieving level 1 has been removed. These rules will apply irrespective of the apprentice’s start date and will include existing learners who started their apprenticeship programme in previous funding years. Updated for version 1.

• P139.1 - Clarification: To reflect that apprentices must be assessed at level 2 for all three units of the English Functional Skills and the assessment for maths.

• The flowchart has been updated.

New for 30 September 2022 – version 2

• P147 - Clarification: We have added extra clarification to make it clear that an assessment at the level of English and maths specified in the apprenticeship standard does not remove the requirement to achieve the minimum required level in English and maths.

P133

English and maths are essential to supporting longer-term career prospects. This is why all apprentices must be supported to gain these essential skills and secure recognised qualifications.

P134

English and / or maths must be provided for all apprentices where they do not have prior attainment in these subjects at level 2.

Achievement levels

P135

As part of our ambition for a world-class technical education system and in line with recommendations from independent experts, progression towards and attainment of approved level 2 English and maths qualifications is an important part of the apprenticeship programme. For those undertaking a level 3 or higher apprenticeship, it is a requirement that they hold or achieve an approved level 2 in both subjects before they can successfully complete the apprenticeship.

• P135.1 For apprentices at all levels with formally recognised special educational needs, learning difficulties or disabilities, who struggle to achieve the regular English and / or maths minimum requirement due to the nature of their difficulty or disability, we will accept achievement of entry level 3 Functional Skills in English and / or maths (see paragraphs P148 to P154); and

• P135.2 You must make every effort to enable apprentices with special educational needs, learning difficulties or disabilities to achieve the minimum English and maths requirements of the specific apprenticeship (as set out in paragraphs P134 to P147). This includes appropriate use of access arrangements, reasonable adjustments and other approved qualifications that are detailed in the ESFA list of qualifications approved for funding.

P136

For apprentices undertaking a level 2 apprenticeship:

• P136.1 We want as many apprentices as possible to achieve level 2 English and maths. We require all apprentices to achieve level 1 (where they have not already) as a minimum and where appropriate, work towards level 2 English and maths. Not all level 2 apprentices will be required to take the assessments at level 2. Level 2 English/maths must be achieved if specified within the apprenticeship standard.

What we will fund

P137

We will fund an apprentice to achieve up to an approved level 2 qualification in English and maths where they do not already hold a suitable equivalent qualification. Acceptable equivalents are set out in a published list on GOV.UK called ‘Acceptable current and prior equivalent qualifications for English and maths minimum requirements in apprenticeship standards at level 2 and above’.

P138

We will pay you for this at the single rate set by us for each eligible qualification undertaken. It will not be deducted from the employer’s apprenticeship service account or require employer co-investment.

P139

You can claim funding for apprentices who have not previously attained a GCSE grade A* to C (or 9 to 4) in English or maths (or both) on the day they start the following qualifications:

• P139.1 GCSE English language or maths (or both); or

• P139.2 Functional Skills English or maths at level 2 (or both).

P140

For level 2 apprenticeships, where a level 2 qualification in English or maths is not required for the apprenticeship and the apprentice does not already hold the acceptable qualifications for their standard, then main providers must adopt the following approach and can claim funding for an apprentice in the following scenarios:

• P140.1 Where the apprentice holds neither level 1 nor level 2 approved qualifications: Apprentices must study towards and achieve English and maths qualifications of at least level 1 (Functional Skills level 1 or GCSE grade E or 2). Once level 1 (Functional Skills level 1 or GCSE grade E or 2) is secured, apprentices must work towards level 2 English and / or maths (Functional Skills level 2 or GCSE) where there is time to make meaningful progress (a minimum of three months remaining prior to gateway). In recognition that a level 2 English and maths is at least two levels above the level of prior attainment, they are not required to be assessed at level 2 unless the provider is satisfied they are ready for assessment, or they have evidence of being ready for assessment (for example from mock/practice attempts).

• P140.2 Where the apprentice already holds approved level 1 qualifications: Apprentices must start, continue to study and take the assessments for a level 2 English and / or maths (Functional Skills level 2 or GCSE). This requirement must be fulfilled before the apprentice takes the end-point assessment. Apprentices should be assessed at level 2 for all three units of the English Functional Skills and the assessment for maths.

P141

We will fund Functional skills English and / or maths at level 1 or below where you (or a subcontractor) have conducted an initial assessment that shows the apprentice needs to study at a lower level before being able to achieve their level 2. The apprentice must be judged to be below level 1 to be funded for a level 1 qualification.

P142

For level 3 and above apprenticeships where the apprentice does not already hold the acceptable level 2 English and maths qualifications, we will fund the apprentice to achieve the qualification. The apprentice must commence tuition at the English and maths level immediately above the level at which they have been assessed at the start of their apprenticeship programme. In instances where this starting level is lower than the exit requirements, progression through the appropriate English and maths levels (as required in the apprenticeship standard) must be achieved.

P143

In exceptional circumstances, we will fund:

• P143.1 Re-takes of English and / or maths qualifications where apprentices receive further teaching to achieve the required English and / or maths Functional Skills qualification; and

• P143.2 Other approved qualifications(including components, where applicable) where an apprentice will need significant, additional numeracy and literacy support that is not met through immediate entry onto a GCSE or Functional Skills course.

P144

If the apprentice is made redundant, they are allowed to continue with their English and / or maths up to and including level 2. You can continue to claim funds at the published apprenticeship English and maths rates.

P145

You must not claim funding from the adult education budget for English or maths undertaken by an apprentice.

P146

Any English and / or maths requirements for the achievement of an apprenticeship standard not set out above must be funded from an employer’s levy funds or through government-employer co-investment.

P147

You must provide verifiable evidence of the apprentice’s achievement in English and / or maths. Providers must do this as soon as possible and before the gateway to end-point assessment. Guidance for obtaining acceptable evidence is provided in the evidence pack.

Judgement of an apprentice’s current level

P148

If an apprentice does not have acceptable evidence of previous attainment of English and / or maths you must carry out a judgement of their current level. You must use current assessment tools based on the national literacy and numeracy standards and core curriculum or DFE published English and maths Functional Skills subject content. The judgement of the current level is used to determine the level the apprentice must start working towards, and does not remove the requirement to achieve the minimum required level in English and maths, (refer to paragraphs P135 and P141).

Exceptions to the regular English and maths minimum requirements, for people with special educational needs, learning difficulties or disabilities

P149

Individuals must be considered on a case-by-case basis and must satisfy all of the following conditions:

• P149.1 The apprentice has either an existing or previously issued education, health and care (EHC) plan, a statement of special educational need (SEN) or a learning difficulty assessment (LDA). Self-declaration of a learning difficulty or a disability is insufficient.

• P149.2 You and the employer expect the apprentice to achieve all other aspects of the apprenticeship requirements, become occupationally competent and achieve entry level 3 functional skills in the adjusted subject(s) before the end of their apprenticeship.

• P149.3 You hold or have conducted an evidenced judgement demonstrating that even with support, reasonable adjustments and stepping stone qualifications, the apprentice will not be able to achieve English and / or maths to the minimum level within the timeframe projected for them to complete all the occupational elements.

P150

Depending on the apprentice’s individual circumstances and outcome of your judgement, the exception outlined in paragraph P148 may apply to either English and maths (or both). If the exception applies to only one subject, the regular requirements for the non-adjusted subject will apply. P149 Although the apprentice will be exempt from the regular English and / or maths minimum requirements, main providers must plan and evidence how the apprentice will access further literacy and numeracy development, including level 1 and level 2 courses, as part of their overall training provision, if appropriate.

P151

Although the apprentice will be exempt from the regular English and / or maths minimum requirements, main providers must plan and evidence how the apprentice will access further literacy and numeracy development, including level 1 and level 2 courses, as part of their overall training provision, if appropriate.

P152

The judgement must be formal and structured and conducted by an appropriate professional associated with the main provider (or subcontractor), such as the head of SEN or student support. It must be conducted within eight weeks of an apprentice beginning their apprenticeship and must include:

• P152.1 Judgement of the apprentice’s current English and maths ability;

• P152.2 Information on how the learning difficulty or disability affects the apprentice’s English and maths abilities and a clear indication of whether English and / or maths are affected;

• P152.3 Judgement of the apprentice’s ability to meet the regular English and maths requirements even with appropriate support in place;

• P152.4 Creation of a recommended learning plan to enable the apprentice to achieve entry-level 3 Functional Skills in the adjusted subject(s) and, where appropriate, to continue to build on their literacy and numeracy skills by accessing further courses; and

• P152.5 Copies of an education, health and care (EHC) plan, a statement of special educational need (SEN) or a learning difficulty assessment (LDA).

P153

You must retain all elements of the judgement in the evidence pack.

P154

If the apprentice disagrees with the judgement outcome, you must provide a facility for the apprentice to request a second opinion. You must ensure that a second SEN professional independently reviews the outcome. You may determine the format of the review process.

P155

Where the apprentice needs to change to entry level 3 for English and / or maths due to their disability or learning difficulty, the main provider must record this in the ILR as a change in the usual way.

Flow chart: find out if an apprentice needs to do English and maths i.e. functional skills or GCSE

End-point assessments

New for 1 August 2022:

• P167 to P168 - Clarification: We have moved relevant information relating to an integrated standard, from elsewhere in the rules to a new section.

• P167 - Clarification: To reflect requirements for end-point assessment of integrated standards. Updated for version 1.

P156

End-point assessment is a holistic and independent assessment of the knowledge, skills and behaviours, which have been learnt throughout an apprenticeship standard. The requirements for end-point assessment are set out in the assessment plan for each specific standard.

P157

Apprentices will not be able to achieve an apprenticeship standard without satisfying all the requirements of its assessment plan, including the end-point assessment.

P158

An apprentice can only take the end-point assessment once they have:

• P158.1 Met the minimum duration of the apprenticeship (see paragraph P35). You must ensure that the entire duration of the apprenticeship standard, for both training and end-point assessment, is a minimum of 372 days to be eligible for funding;

• P158.2 Satisfied the gateway requirements set out in its assessment plan (including any specific duration criteria); and

• P158.3 Their employer (in consultation with the main provider) is content they have attained sufficient knowledge, skills and behaviours to successfully complete the apprenticeship. In the case of an apprentice made redundant where we are funding the apprenticeship to completion, the main provider can act as a proxy employer for the purposes of providing any required employer competency statement. This does not mean you need to record yourself as the employer in the ILR (see paragraph P159).

P159

The employer in consultation with the main provider must ensure that the apprentice is prepared and understands the end-point assessment process. Engaging the end-point assessment organisation can be at any time, but to ensure timely delivery of the end-point assessment, the dialogue must commence at least 6 months before the planned end date of the apprenticeship. As part of this process all information required for the end-point assessment must be ready to present to the end-point-assessment-organisation for the gateway.

P160

The apprentice must be employed until the end-point assessment is completed. Consideration must be given to the potential time needed for any re-sit and / or re-training prior to re-taking the end-point assessment so the apprentice remains employed during this time.

• P160.1 The only exception is where the apprentice has been made redundant and we are funding the apprenticeship to completion.

P161

At least 6 months before the apprentice reaches the gateway the employer must have:

• P161.1 Selected an organisation from the Register of End-Point Assessment Organisations (RoEPAO) to deliver the end-point assessment,

• P161.2 Negotiated a price with the end-point assessment organisation. Only those organisations listed on the RoEPAO will be eligible to be funded.

P162

You are required to complete the ILR fields for the end-point assessment price and end-point assessment organisation identifier as soon as the price and end-point assessment organisation is agreed with the employer. These fields must not be completed prior to this.

P163

Although you will be involved in administrative arrangements for end-point assessment, the assessment itself must be independent (subject to paragraph P167 below). Some assessment plans give the employer and the training provider specific roles but, with the exception of integrated standards, training providers who have delivered the training cannot make an end-point assessment judgement for that same group of apprentices.

P164

It is the responsibility of the employer to select the end-point assessment organisation and negotiate the price within the funding band for assessment. You must contract with the end-point assessment organisation that has been selected by the employer and lead the relationship with them including where you subcontract the delivery of apprenticeship training. This allows you, on behalf of the employer, to make payment to them for conducting the end-point assessment. The written agreement must set out the arrangements for sharing relevant information about the apprentice so end-point assessment and certification can take place, including arrangements for any re-takes and payments. This must also include arrangements for a change of circumstances, which may delay, or lead to the cancellation of, the end-point assessment.

P165

You must ensure that the price you agree with the employer for the apprenticeship includes the amount the employer has negotiated with the end-point assessment organisation. This includes any cost of external quality assurance of the end-point assessment. Costs for external quality assurance will depend on the body undertaking it. You must ensure that you engage actively with any request for information from the external body, where applicable.

P166

Eligible costs for end-point assessment organisations are set out in the Conditions of Acceptance document for organisations on the RoEPAO.

P167

We expect that the cost of end-point assessment will not usually exceed 20% of the funding band maximum. This does not mean that end-point assessment must cost 20%; the cost that individual employers will pay for assessment varies between standards and we expect employers to negotiate with assessment organisations to secure value for money. Where the total negotiated price is higher than the funding band maximum the difference must be paid by the employer.

End-point assessment process for integrated standards

P168

The end-point assessment organisation for an integrated degree standard may be the higher education training provider or, a professional body, although to remain independent the assessment must involve someone from the occupation in the delivery and grading decision who has not been involved in the training element of the apprenticeship.

P169

The end point assessment activities within an integrated standard can include but are not limited to a professional discussion, an interview and a presentation. Delivery of new learning must not take place during the end-point assessment period.

Certification

New for 1 August 2022:

• We have moved this section from the back of the document.

P170

The end-point assessment organisation (or the training provider in the case of an integrated standard) is responsible for claiming the apprenticeship completion certificate from us (including for those apprentices who are not funded by us and recorded in the ILR under Funding Model 99).

P171

The end-point assessment organisation must not claim the apprenticeship completion certificate from us until they have received evidence from the provider that the apprentice has met all the requirements of the apprenticeship including English and maths.

P172

Where applicable you must apply for and give apprentices certificates from awarding organisations for achieving a mandatory qualification and evidence this in the evidence pack.