Wendy Blackburn

Incentive payments for non-levy

Created

Where a non-levy employer is eligible for the new employee incentive payment but has not reserved funds via the apprenticeship service my understanding from the funding rules is that you are able to take the original apprenticeship back to start date and reserve funds for a future available month.  I just wanted to see if any other providers have had experience of this.  Would an employer who started an Apprentice in Aug but had not reserved funds and therefore re-started their programme in Dec still be able to claim the incentive payment for their 'new' employee?  The guidance appears to indicate that this would be okay (although their may be consequences to funding due to learning undertaken within this period)

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Steveh

Yes, I think this is, for want of a better word "fine"! Not least because there's no requirement for an employee to start their App on their first day of employment so, as I understand it, provided their employment began after the start of August, the employer will be eligible for the incentive.

Wendy Blackburn

@Steveh - Thanks for confirming my thoughts!

Benjamin Cowdery

We are being told that employers cannot claim for Apps who have not been put on as a cohort prior to their start date and are being advised to change their start date to correct?  Has anyone else been told this?

Ruth Canham-James

Benjamin - It's in the funding rules;

P246 Where an apprenticeship has started and funds have not been reserved, if you want to
use reserved funds to fund that apprenticeship, you, or the employer, must reserve
funds for a future available month. You must re-start the apprentice on their
apprenticeship and re-determine eligibility in line with the start date confirmed in the
reservation. This includes, where applicable, updating the apprenticeship agreement
and commitment statement.

And employers can't claim the new employee incentive without have a DAS record for that apprentice. That's in the employer rules;

E114 To receive an incentive payment for hiring a new apprentice, you must use the
apprenticeship service to:
E114.1 access funding for the apprentice’s training and assessment; and
E114.2 claim the incentive payment which will be paid to you directly.

Benjamin Cowdery

Thanks Ruth, very helpful.

Clair Ayling

Has anyone been able to challenge this successfully given that it is affecting quite a number of providers/employers?

Andrea Whincop

Yes, I think this is, for want of a better word "fine"! Not least because there's no requirement for an employee to start their App on their first day of employment so, as I understand it, provided their employment began after the start of August, the employer will be eligible for the incentive.

SteveH where does the employer stand if they have been paying apprentice min wage for this period and then re-start the apprenticeship reserving funds? 

(Edited)

Steveh

[backs slowly away]

I kind of don't get involved in discussions about App Minimum Wage, but, all I'll say is, as far as I'm aware, they can ONLY be paid it between the dates of a valid Apprenticeship Agreement...

Andrea Whincop

Thanks Steve, appreciate your response and apologies for putting you on the spot.