Apprenticeship Funding (for beginners)

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This topic contains 9 replies, has 4 voices, and was last updated by  Martin West 7 years, 3 months ago.

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  • agr


    I am from a college that has never run apprenticeships before, but we are now looking into delivering them, therefore I know nothing about apprenticeship funding, but I have been asked the following question.

    “We’re putting a submission in to the SFA and they’ve asked us to put in the cash value of the following frameworks:

    Business and Admin NVQ L2 & L3
    Children and Young People’s Workforce NVQ L2 & L3
    Accountancy NVQ L2 & L3

    Also is functional skills included as part of the above value?”

    I have read the funding rules, and the funding system and an exchange on this forum titled ‘2013/14 Transitional arrangements and Entitlement for Apprenticeships’, the result of which has been that I am now very confused.

    Is anyone able to explain how 16-18 apprenticeship funding works, assuming we ran them in 2013/14 for the first time?

    Thank you.


    Caspar Verney

    Nobody publicly yet knows what the 16-18 Apprenticeship values will be. There is an SFA spreadsheet available from their website that gives the 19-23 rates, but the factor for 16-18 has yet to be decided……

    With regard to Functional Skills – yes this is part of the Apprenticeship, albeit it depends on the learner’s specific subject prior attainment as to whether they are required to take them or not. Also beware that the awarding authority can have a different requirement. A Provider that I work with followed the SFA Rules which said that the Learner did not require Functional Skills if they had Grade A to C at GCSE, but then the awarding body insisted that the Learner had to produce a Functional Skills portfolio as part of their Apprenticeship even though it would not be funded! So when working out how much you expect to claim for delivering Apprenticeships you will need to include monies for all Functional Skills (although the financial amounts are not huge)

    Also any contract awarded by the SFA will have to pay any and all ALSN requirements (which in 2013/14 is only funded at £150 pcm unless they require extreme support) and any home postcode weightings.

    Also be aware that if a student starts Level 2 when they are 18 and then progresses to Level 3 then then they will be 19+ by then and so funded at very different rates (with 50% employer contribution expected).




    Hello there,

    I am right in assuming though that for existing frameworks the existing funding model will continue aren’t I?




    How do you know what is an ‘existing’ framework and what is a ‘new’ framework?

    I cant find a funding system document that explains the apprenticeship funding forumla in 2012/13.

    Which section of the LARA is the apprenticeship rate, im guessing ER APP?

    Is it as simple as the competency aim and knowledge aim SLN x 2804 x our provider factor gives us a framework amount?



    agr – on LARA in the tab ER APP (you’re correct) it will state the start and end date – obviously any quals running in the AY will be considered current. ones after 1/8 will be new and the simplified rates will apply (assuming my supposition is correct).

    the best document i can adivse reading would bethe Provider Manual on the IA website. Provider factors do not apply to Apps; so it’s SLN * NFR * PW (plus disadvantage ulpifts etc). this is calcualted per qual so NVQ, Tech Cert and Func Skills.


    Caspar Verney

    A worked example may help:

    50093009 is NVQ Level 2 Certificate in Business and Administration (QCF)

    From the ER App tab in LARA there are 2 possibilities shown, but one has expired and so only one is valid. It has a Program Weighting Factor (PWF) of A and a Primary Funding Value of 1.181 with a Unit of Measure of Standard Learner Numbers (SLN).

    Now a PWF of A means multiply by 1.

    The National SLN Funding Rate for 2012-13 for 16-18 is £2,804 (19-24 = £2,615, 25+ = £2,092, although for 19+ only 50% of this amount is funded by the SFA and the rest is supposed to come from the employer, although it may just be given as equivalent on-the-job training value and hence no actual money is paid for that other 50% of the value).

    So the annual value for a 16-18 student is £2,804 x 1.181 x 1 = £3,311.52 – this can then be multiplied by any home postcode weighting (often just 1).

    Now in 2012/13 the Completion funding is 25% (of the Main Aim only, not of any Functional Skills, it will be 20% in 2013-14) and the minimum course duration is 13 months. You get paid double for the first month. So on a 13 month course you should expect £354.80 for the first month (2/14th’s) and then £177.40 (1/14th) each month thereafter. At the end of Month 13 if the learner achieves then you would receive £177.40 plus the Completion Funding of £827.88. If the course is longer or part time then it must be spread over more months. If the course is 13 months but the learner takes longer to achieve then you still get the £177.40 in month 13, but nothing thereafter until the achievement when you get the £827.88.

    I find a worked example easier to understand, but much of the above may be quite familiar.

    With regard to carry-in learners who start in 2012-13 but complete in 2013-14, it is not clear to me whether the Completion Funding will be 25% or 20% and if the latter, how the missing 5% will or will not be paid. Does anyone know, please?




    Thank you very much Dan and Casper. You have been very helpful.



    The apprenticeship framework refers to transferable skills in Functional Skills / GCSE (with enhanced functional content) and Key Skills.

    This makes it sound as though a GCSE can be included as a component aim of an apprenticeship programme, however, on the LARA there is nothing for GCSE Maths/English etc under the ER APP section, does anyone know why this is?


    Caspar Verney

    Key Skills is the old name for what is now referred to as Functional Skills. Basically this means Maths & English as 2 separate learning aims.

    To achieve a full NVQ Level 2 Apprenticeship a learner must have or attain Level 1 Maths & English. If they have a pass at GCSE above a grade G or F (sorry I can’t remember the exact grade offhand just now) in the relevant subject then that is good enough to count as the Level 1 and you do not have to deliver the Functional Skills (and cannot claim for it if you do).

    To achieve a full NVQ Level 3 Advanced Apprenticeship a learner must have or attain Level 2 Maths & English. If they have a pass at GCSE of grade C or above in the relevant subject then that is good enough to count as the Level 2 and you do not have to deliver the Functional Skills (and cannot claim for it if you do).

    So you do not deliver GCSE as part of the Apprenticeship, just the Functional Skills required.

    Typical QCF Learning Aims are: 50093198 (L1 English), 50109868 (L1 Maths), 50093186 (L2 English), 5010987X (L2 Maths). They are all worth the same with an SLN factor of 0.168 and a PWF of A, which is 1, so an annual value of £471.07 for 16-18 for 2012-13. Please note that the Aims quoted have a last date for new starts of 31/8/13 and so you may well use a different aim reference.

    These Functional Skills, when required, must be delivered as part of the Apprenticeship as otherwise you cannot claim the full framework and the Completion Funding. They do not have to take the same 13 months as the Main Aim and can be delivered within a shorter time period if you wish. If you deliver and claim Level 2 Functional Skills during the NVQ Level 2 then that would be counted as starting the NVQ Level 3 which has some unfortunate affects on Success Rates, so you are better off keeping them within the appropriate NVQ learning year only.



    Martin West

    Just to clarify GCSE’s within Apprenticeships

    The funding rules require that:
    102. All Apprenticeship Providers must offer Level 2 Functional Skills or GCSE (with enhanced functional content) qualifications in English and Maths to all apprentices who have not yet achieved this level whether or not it is included in a Framework.
    103. Where apprentices have previously achieved Level 1 qualifications in one or both subjects, the offer of Level 2 study must be documented as part of the Learning Agreement.
    104. If an apprentice takes and achieves a Level 1 Functional Skills or GCSE (with enhanced functional content to at least Grade E) qualification in either English or Maths under Apprenticeship funding and is capable of achieving a Functional skills qualification at Level 2 then Providers can claim funding for this outside of the Apprenticeship Framework.

    The funding for any GCSE would be from the ASB or EFA budgets as applicable to the learner.

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