Wondering what has changed in the August update to apprenticeship funding? Unsure about how the changes affect you? We're here to help.

In this blog post we will explore the ins and outs of what the new apprenticeship funding involves. From “off the job” to “co-contributor” we understand as someone who is new to the world of apprenticeship funding it can be difficult to wrap your head around all the processes and rules. That’s why we will be covering the 6 key points that you as an employer should know.

1. Skills Scans and Communication

At Swift, the learner will complete two “Skills Scans” and English and Maths are assessed, so we can identify what level they are currently working towards. From this initial assessment we will have a conversation with both the employer and learner.

This conversation will include:

• The results of the initial assessment
• The desired learning outcomes from the apprenticeship
• What, if any, prior knowledge has been identified
• How this information has informed the training plan
• Any additional training needed, EG. Functional Skills

If existing learning leading to funding reductions has been identified, this must be discussed with the learner and employer ASAP. This will come from the final tutor assessment about a week prior to the apprenticeship start.

At Swift Childcare we deliver an “Adaptive Delivery Plan” which is tailored to the learners needs. The structure of this plan comes from the “Skills Scans” and initial assessment. This is done multiple times by the intake team and their tutor.

2. Reduction in Funding for 19 years or over and Co-contributors*

If an employer hires an apprentice 19 years or over or falls into the co-contributor category the government funding will only cover 95% of the course, the government ask the employer to pay the additional 5% of the funding.

If due to "prior learning" the funding is calculated at a reduced rate, any employer taking on an apprentice that is aged 19 or above or are a co-contributor, are only required to contribute only 5% of the lesser amount.

3. “Off The Job” (OTJ) hours - “Adaptive Delivery Plan”

“Off the job” is a bit of a misnomer when it comes to childcare. The government have said that all apprenticeships must include 20% of the time in paid work as development. Normally this must be done away from the production line or cash tills. However, in Early Years we provide enough growth and development every day to cover this requirement, but this must still be recorded.

We still use the 20% form to calculate the OTJ, but at Swift the tutor will add on the “total scheduled hours”. This is above what is needed and is embedded in the “Adaptive Delivery Plan”. "Prior learning" will reduce this! However, as we have added over 100 hours on top of the requirement, it should not be a problem. As your apprentice will not progress without completing the total OTJ required, we are just making sure we have no nasty surprises at the end!

4. Reviewing of Progress + Extra Help

At Swift we think of the employer as part of the team. As such we believe it’s very important that you should be able to communicate well with both your learning provider and apprentice. The new stipulation that “Progress Reviews” are carried out on a 'regular basis’ and are a 'three-way discussion' involving the tutor, employer, and the apprentice. This is a great addition and something we have been doing for years. It ensures everyone is on the same page. However, at Swift we have an additional contact with the academy just for employers, to make sure any questions can be answered outside of progress reviews.

5. Employment and Finances

The funding rules now specify that the apprentice ‘must be paid through the same PAYE scheme used to set up the employer DAS account’. We felt that this should be highlighted, for nursery settings that are owned by the same directors however are separate businesses on paper. With this rule change the directors must ensure that the apprentice is paid from the correct company PAYE throughout the apprenticeship.

We are also required to evidence that the apprentice is employed for a period at least long enough to cover the full programme of delivery, including the End Point Assessment. With Swift this is 13-15 months! A copy of the letter of intent or contract is all that is needed in the apprentice file.

If unfortunately, an apprentice needs to move employers or if they are uncapable of remaining on the apprenticeship we would instigate a change of employer process. When processing a Change of Employer, if the first employer has overpaid their employer co-investment (5%), we (the training provider) are responsible for refunding any overpaid funds.

6. The New Digital Apprenticeship Service (DAS) "Job Site" 

As many of you know, the best place to secure quality applicants is the Government’s National Apprenticeship Job Site. Now the new funding rules put in place, make sure you have been offered this facility. We must evidence that you, the employer, has been offered the ‘Recruit an Apprentice service’ and where you have declined it, we must record the reason why. This is why we may ask additional questions. If your DAS apprenticeship account and ours are not connected, or you do not have an account your Swift contact will be happy to offer support.

Have any unanswered questions? Or want to know more about how an apprentice can benefit your setting why not schedule a personal call with an industry expert!

Contact Peter on peterb@swiftcc.co.uk or call 020 392 10491

*co-contributors are companies who have more that 50 employees but pay less that 3 million in PAYE. It can work the other way as well (pay 3 million in PAYE but have less than 50 employees) but this is less likely. Talk to your training provider if you are unsure.