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?

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

  • P71 to P72 - New rule: We have updated the rules to reflect that from 30 September 2022, prisoners can access apprenticeships under alternative arrangements.

P61

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

P62

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

  • P62.1 Start their apprenticeship after the last Friday in June of the academic year in which they have their 16th birthday.

  • P62.2 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.

  • P62.3 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.

  • P62.4 Not benefit from funding from an employer’s apprenticeship service account or government-employer co-investment for any part of their programme where either you, or another party, claim funding from another government department or agency for the same purpose. This includes any funding for that individual from the European Social Fund, the Education and Skills Funding Agency or Jobcentre Plus.

  • P62.5 Not benefit from funding for any part of their programme that duplicates training or assessment they have received from any other source.

  • P62.6 Spend at least 50% of their working hours in England over the duration of the apprenticeship.

    • P62.6.1 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 P388) for exceptions to this rule.

    • P62.6.2 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.

  • P62.7 Have the right to work in England.

  • P62.8 Have an eligible residency status (information can be found in the residency eligibility section in Annex A).

P63

Where you are using funds from an employer’s apprenticeship service account you must have confirmation from the employer that the apprentice is employed by that employer 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.

P64

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.

P65

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

P66

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 show that the content of the training is materially different from any prior qualification or a previous apprenticeship. More information is detailed in paragraph P341.3.

P67

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

P68

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

P69

You must reassess an individual for any new apprenticeship.

P70

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

  • P70.1 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 P275).

  • P70.2 Apprentices who do not meet the conditions of paragraph P70.1 above. 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 P276).

P71

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

  • P71.1 start their apprenticeship on or after 30th September 2022; and

  • P71.2 be eligible for Release on Temporary Licence (RoTL) to undertake their apprenticeship

P72

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.

P73

Military prisoners, immigration detainees and prisoners on remand are ineligible for apprenticeships offered in prisons.

Individuals who are not eligible for funding

New for 1 August 2022:

  • P76.1 - Clarification: The government intends to bring forward legislation later in the year to allow prisoners to access apprenticeship opportunities.

  • P76.2 - New rule: To reflect that individuals who are self-employed as a sole trader are ineligible for funding (this previously said self-employed).

  • P76.3 - 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.

  • P76.3.1 - 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 P70.

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.

P74

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:

  • P74.1 Are here illegally;

  • P74.2 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;

  • P74.3 Are in the United Kingdom on holiday, with or without a visa;

  • P74.4 Have overstayed their immigration or visitor visa;

  • P74.5 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;

  • P74.6 Are ordinarily resident in the Channel Islands or Isle of Man, unless they are also ordinarily resident within England; or

  • P74.7 Have a biometric residence permit or residence permit imposing a study prohibition or restriction on the individual.

P75

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

  • P75.1 Be undertaking another apprenticeship;

  • P75.2 Be undertaking training funded through the Adult Education Budget (AEB), where that training will:

    • P75.2.1 Replicate vocational and other learning aims covered by the apprenticeship, including English and maths;

    • P75.2.2 Offer career related training that conflicts with the apprenticeship aims; or

    • P75.2.3 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.

  • P75.3 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 P74.2; or

  • P75.4 Undertake any part of an apprenticeship whilst on a sandwich placement as part of a degree programme.

P76

As an exception to P74.2, an individual may commence an apprenticeship and attract funding, where they have less than four weeks to completion of an existing DfE funded course.

P77

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

  • **P77.1 Self employed as a sole trader (a person who conducts business by their own personality and not with any other corporate personality).

  • P77.2 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).

    • P77.2.1 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 P70.

Apprentices who need access to learning support

P78

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:

  • P78.1 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.

  • P78.2 And, as a result of this learning difficulty or disability, require reasonable adjustments in order to be able to complete their apprenticeship, including any reasonable adjustments to complete English and maths requirements and end-point assessment.

P79

In relation to paragraph P77, this can include apprentices who have not previously had a learning difficulty or disability identified, but in relation to whom the main 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.

P80

Before a claim for learning support funding can be made, a further detailed assessment (see paragraph P107.5.1) 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.

P81

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 provider, this must be clearly evidenced and documented. This must include:

  • P81.1 Documented evidence demonstrating the apprentice’s learning difficulty or disability;

  • P81.2 A documented assessment of how progress towards completion of the apprenticeship would be directly impacted without the reasonable adjustments being put in place;

  • P81.3 Details of the reasonable adjustments necessary to enable the apprentice to complete their apprenticeship; and

  • P81.4 A documented and clear plan for delivering the reasonable adjustments throughout the apprenticeship. This plan must be agreed and signed-off by the apprentice and with the apprentice’s consent, it should be shared with the apprentice’s employer. 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 P343.

P82

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:

  • P82.1 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).

  • P82.2 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 P77)

P82.3 Where there are no costs incurred in putting in place reasonable adjustments

P83

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

  • P83.1 Deliver the support to meet the reasonable adjustments and confirm the continuing necessity and appropriateness of these reasonable adjustments on a monthly basis;

  • P83.2 Record and retain the appropriate evidence to demonstrate that the actions in paragraph P82.1 have been completed, that the requirements for claiming learning support funding are met and that outcomes are recorded (as per paragraph P343); and

  • P84.3 Report in the ILR that an apprentice requires learning support along with the period for which this is required.

P84

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.

P85

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.

P86

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 the last ILR collection for each funding year.

Monitoring

P87

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 Provider Agreement.

Apprentices who need access to exceptional learning support (ELS)

P88

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.

P89

You must submit ELS claims to us at the beginning of the apprentice’s programme, or when you identify the apprentice requires support costing 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.

Flexi-Job Apprenticeship Agency (FJAA)

New for 1 August 2022:

  • P90 to P94 - New rules: To reflect the launch of the Register of Flexi-Job Apprenticeship Agencies, this new section details the rules for these organisations.

P90

A FJAA is an organisation whose main business is employing apprentices who are made available to other employers. FJAAs are targeted at sector or professions where existing employment models present a structural barrier to the traditional apprenticeship route.

P91

In order to operate as a FJAA, organisations must apply to join the Register of Flexi-Job Apprenticeship Agencies.

P92

A FJAA must be set up as a distinct legal entity so that apprentices can have contracts of employment with the FJAA.

P93

You must report in the ILR that the apprentice is employed by a FJAA.

P94

Apprenticeship positions offered by a FJAA must comply with the apprenticeship requirements set out in these rules. The FJAA is responsible for paying the apprentice their wages (through the PAYE scheme declared in the apprenticeship service account), however these costs can be reclaimed from the host employer(s).

Apprenticeship training agency (ATA)

New for 1 August 2022:

  • This section of the rules is currently under review.

  • Following the launch of the Register of Flexi-Job Apprenticeship Agencies, the Apprenticeship Training Agency (ATA) register is now closed.

New for 30 September 2022 – version 2

  • From 1 April 2023 only organisations on the Register of Flexi-Job Apprenticeship Agencies will be able to start new apprenticeships which are delivered via a model where they place apprentices with host employers for the majority of their apprenticeship (i.e. more than 50% of the apprenticeship duration).

  • Any apprenticeships which begin before 31 March 2023 can continue to be delivered through an ATA, but new starts under this delivery model will not be permitted from 1 April 2023 (see paragraph P27.3).

P95

An Apprenticeship Training Agency (ATA) is an organisation whose main business is employing apprentices who are made available to employers.

P96

An ATA must be set up as a distinct legal entity so that apprentices can have contracts of employment with the ATA.

P97

You must report in the ILR that the apprentice is employed by an ATA.

P98

Apprenticeship positions offered by an ATA must comply with the apprenticeship requirements set out in these rules. If the job is with a third party, the cost of wages may be met by that third party, but the wages must be paid by the ATA.

P99

Where the apprentice is employed by a levy-paying ATA, the training and assessment costs are met by the ATA’s own apprenticeship service account.

P100

Where an apprentice is employed by a non-levy-paying ATA, the ATA will be able to access support for training and assessment through government-employer co-investment.

P101

Group training associations that offer an ATA service to employers must follow ATA-specific rules.