UK gov apprenticeship funding from April 2024

In March 2024, the UK government updated its policy for apprenticeship funding in England. It is relevant to training providers who provide training for English apprenticeships, organisations that provide end-point assessment for English apprenticeships, and employers with a workforce in England.

A summary of the document is given below; the full apprenticeship funding text can be found here and should be read alongside the published funding bands for individual apprenticeship standards and the apprenticeship funding rules, that set out how this funding policy will work in practice and the expectations of employers and training providers.

For new starts from April 1, 2024, where the employer does not pay the apprenticeship levy, the government will fund all of the apprenticeship training costs, up to the funding band maximum. for apprentices between 16 and 21 years old. The proportion of funds that levy-paying employers can transfer to other businesses will increase to 50%.

All new starts must follow an approved apprenticeship standard; each is in a funding band that ranges from £1,500 to £27,000. Standards and funding are based on recommendations from the Institute for Apprenticeships and Technical Education (IfATE), which reviews existing standards’ funding bands on a regular basis and approves new standards for allocated funding. The funding bands set the maximum amount of apprenticeship funds that:

• Employers who pay the levy can use it towards an individual apprenticeship from their service account.
• The government will co-invest in apprenticeships where an employer:
  • does not pay the apprenticeship levy.
  • has insufficient funds in their apprenticeship service account.

Any costs above the funding band limit for any apprenticeship agreed upon by both employer and provider, must be met by the employer and paid directly to the training provider. Payments are only made to providers on the approved register, including where subcontracted from one provider to another (any exceptions are given in the apprenticeship funding rules).

The registered place of work, where the apprentice spends half or more of their time, must be England; although this is regardless of residence, they must be taking an English statutory apprenticeship and meet all other learner eligibility rules. The apprentice must also have the right to live and work in the UK for the duration of the apprenticeship, noting that Scotland, Wales, and Northern Ireland have their own arrangements for supporting employers to access apprenticeships.

Apprenticeships can be at a higher, equal, or lower level than already-held qualifications or apprenticeships if they allow the individual to acquire substantive new skills or if the content of the training is materially different from any prior training or previous apprenticeship. Providers must consider all relevant prior learning and experience when assessing learner eligibility. They should adjust the content, duration, and price of the apprenticeship where applicable.

All apprenticeship standards include end-point assessment, which must be delivered by an independent end-point assessor. The funding band allocated to an individual standard includes the cost of the end-point assessment as well as the cost of the training, which will vary between standards. It is expected that the cost of end-point assessment should not exceed 20% of the funding, and providers or employers (if they have chosen to undertake this role) should negotiate value for money.

There are mechanisms for further funding for employers, providers, and individuals related to care and additional support; these should be clarified; more information can be found in the guidance. Further details for employers who pay the apprenticeship levy as well as those that do not pay the apprenticeship levy can also be found in the guidance.

This article is a summary based on the government guidance 'Policy paper; Apprenticeship funding' last updated March 28, 2024.

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