Calculating the TNP value after a change in employer
What is the TNP
Total negotiated price, or TNP, is the price recorded in the financial details of your data when a learner enrols on programme.
If a learner changes employer during their learning programme, you will need to recalculate the TNP 3 and 4 values.
What are the different TNP values
The different TNP values represent:
- TNP 1 is the training price
- TNP 2 is the end point assessment (EPA) price
- TNP 3 and 4 are recorded when there has been a change of employer
TNP 3 and 4 should reflect the price negotiated for the remaining training and assessment costs for the same apprenticeship programme with the new employer only.
How to calculate the TNP value after a learner changes employer
This is an example of how to calculate the TNP value after a learner changes employer.
An apprentice has a training price (TNP1) of £10,000 and an end point assessment price (TNP2) of £2,000 negotiated on 1 September 2021 on the apprentice’s first day in learning for a 12-month programme.
On 23 November a change of employer is recorded. A residual training price (TNP3) is negotiated at £8,400, and a residual end point assessment price (TNP4) is negotiated at £2,000.
The original TNP programme costs:
- TNP 1 (01/09/2021) - £10,000
- TNP 2 (01/09/2021) - £2,000
- TNP 3 (23/11/2021) - £8,400
- TNP 4 (23/11/2021) - £2,000
The apprentice then goes on a break from learning on the 1 April after drawing down 5 months of on programme payments of £924.44 each, totalling £4,622.22.
When the apprentice returns from a break in learning on the 15 June the new TNP 3 and 4 records should reflect the costs which are remaining to deliver the apprenticeship.
The new TNP programme costs:
- TNP 3 (15/06/2022) - £3,777
- TNP 4 (15/06/2022) - £2,000
This will ensure that the remaining payments are correct to deliver the reminder of the apprenticeship.
Find out more about a change of employer during an apprenticeship
or if an apprentice takes an agreed break during learning programme.
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