Jenny Johnson

Co-investment % rate

Created

Hi there

We have a learner who started in January 2022, from the PLR he had done one month on the same apprenticeship in 2018. We negotiated a new price and agreed on the co-investment of 5%. However, on submission of the ILR 10% co-investment was in the period end reports. I have emailed the ESFA (with no outcome for several months now) to request the employer pays 5% only - as they are refusing to pay anymore than the 5%. 5% is in their contract with us as an ITP. 

If we only collect the 5% does that mean we will not receive our achievement funding or are there any other ways around this?

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Martin West

From the guidance:

  1. For apprentices who start an apprenticeship on 1 April 2019 or after this date, the employer must co-invest at a rate of 5%, if co-investment is required. For apprentices who historically started between 1 May 2017 and 31 March 2019, the rate was 10%.
  2. In cases where an apprentice changes employer or provider, but continues on the same apprenticeship as before, we will use the date the apprentice originally started the apprenticeship to determine the co-investment rate to use. The co-investment rate we use depends on whether that start date is before 1 April 2019.
  3. To be eligible for the completion element you must have collected the co-investment from the employer and reported the cash value on the ILR. If employers are fully funding the apprentice through an employer's account, or we have waived the co-investment amount, you do not need to report a zero payment record.

As the Apprentice started 4 years ago in 2018 you should ask the ESFA to waive the 10% contribution and allow a 5% contribution only, this will require their permission for you to use monitoring code 361 to avoid the loss of the completion element.

HTH

Jenny Johnson

Thank you Martin for the clarification. 

So it is waiting for the ESFA to get back to us with their permission 

 

Martin West

As they were previously on programme for only 1 month are you sure the following does not apply so you can record it as a new start.

  1. If the apprentice leaves before the qualifying period for that learning aim (either the apprenticeship or an English or maths qualification), you will not earn any funding for that learning aim, including learning support. However, if you have already earned funding in a previous month before you recorded the ILR ‘Learning actual end date’, we will reclaim the funding.

Jenny Johnson

Hi there

Their PLR is for one month only - so yes they wouldn't have reached the qualifying period...

I could remove the restart indicator run through FIS and see what happens?