Subsidy Control

Hi Melanie,

We are just in the process of going through the clarification version of the 21-22 funding rules but so far have been unable to find a template / example of a new Subsidy Control Declaration Form for the waiving of Employer Co-Investment (on the gov.uk website or elsewhere). 

Is this something the ESFA normally produce as we don’t recall ever being provided with one for state aid either, we just used our own, taking guidance from other sources.

If anybody could please advise if there is a standard template or an example of this form available for providers to use we would be extremely grateful.

Many thanks

Emma

I have searched high and low and unable to find one so following in the hope that anyone can direct me. 

On yesterday's ESFA funding rules webinar, I raised the question and they said they are looking into creating a template. The webinar should be on YouTube by the end of the week but as part of the Q&A, they definitely addressed it.

Thanks Melanie, I ducked out early for lunch assuming they were not taking questions so missed that bit :-)

Hi Simon / Melanie,

I was also on the ESFA funding rules webinar yesterday and asked the same question, they did suggest that this is something they may look into and may incorporate an update in V1 of the rules (to be release at the end of the month).  Hopefully we’ll receive some further clarification then.

Emma

Hi all

I'm looking at the V1 rules update (2021-07-28_-_2122_Provider_Rules_Version_Version_1.pdf (publishing.service.gov.uk))) and I'm not sure when this will become relevant.

Although P270 says transfers are included, P269 refers to Complying with the UK’s international obligations on subsidy control: guidance for public authorities - GOV.UK (www.gov.uk), which in turn takes you to Guidance on the UK’s international subsidy control commitments - GOV.UK (www.gov.uk)

Step 1 here defines a subsidy as ALL 3 OF: given by a public authority; conferring an advantage that is not available on market terms; and affects international trade. 

Even where the sending employer is a public body (local or central govt), funding 5% of an apprenticeship isn't really going to affect international trade, and even where it could be argued (sales apprentice for export company etc), the levy transfer scheme itself means that the advantage is available on market terms.

What am I missing? We're going to make sure we've got the necessary declarations etc but I'm not sure this will ever have any effect.

Thanks

Jim 

Just wondering if there has been any update on the template and if not what people are using in the interim?

Thanks!

I created our own form for now, basically an employer declaration form asking them to declare any subsidies they have received in the last 3 years

Hi just an update on this thread.  I emailed the service desk back in Aug and chased them up on it this week, they said they do not have a form and we are free to create our own. 

Reading some of the comments I wonder if we need one though?

Has anyone had any new information on this? The new contracts have been updated to say Subsidy Control instead of State Aid (clause 40) but the guidance hasn't been updated since March last year (ESF Guidance on State Aid - GOV.UK (www.gov.uk)), which still says State Aid and doesn't go into the detail we were promised last summer. 

Thanks

Looking at the draft Bill https://publications.parliament.uk/pa/bills/lbill/58-02/084/5802084_en_2.html#pt1-pb2-l1g2   there appear to be several ways in which the Government's provision of free or subsidised training to employers would be excluded from the subsidy control measures.  Has there been any informed comment about this?

Hi all

Has anyone had any guidance on this, as it's still not clear?

Specifically, we have been asked by a potential employer whether this would include covid grants, furlough payments etc - I'm currently on hold with the helpdesk but thought I'd ask here as well (will update if I get anything from the call)

My initial reaction is that it wouldn't, not least because it was available to the whole market, but I'm of the opinion that none of it is relevant because of the definition of "subsidy" and Martin's post above, so I'd welcome a different opinion. 

(edit: query raised to technical team)

Thanks

Jim

Just to reopen this - again - in the 22/23 draft funding rules, for any small employer that waives the employer contribution or for those transfer of funds between employers, it states:

P238 . You must ensure the employer completes a subsidy control declaration for relevant funding they receive as a result of the waiver of the employer contribution for small employers and transfers. You are responsible for retaining a copy of this declaration in the evidence pack.

If anyone did create such a declaration, would they be willing to share this with me? 

TIA,

Mel