Incentive payment for Achievement of Standards

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Home Forums Data issues Incentive payment for Achievement of Standards

This topic contains 7 replies, has 4 voices, and was last updated by  Ruth CJ 4 months, 2 weeks ago.

Viewing 8 posts - 1 through 8 (of 8 total)
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  • SCOTTIA
    Spectator

    We’re just reading through the ILR changes for 2019/20 – could someone please advise on the following example :

    The TNP with an employer is £7000 and this is split into TNP1 – Training Costs £5600 and TNP2 – End Point Assessment Costs £1400

    With the achievement incentive being 20% on achievement of the Standard should we minus 20% off the initial £7000 and then split the costs into TNP1 and TNP2?

    e.g TNP = £7000 minus 20% (to account for the achievement incentive) = £5600 to cover both TN1 and TNP2 i.e TNP1 = £4200 and TNP2 = £1400

    MTIA

     
    #381792

    GaynorLF
    Spectator

    Hi

    TNP = TNP1 + TNP2

    in your case £7000= 5600+1400
    You don’t minus anything off –

    it is just how the ESFA calculate your monthly payments eg
    ESFA will calculate 7000 minus 20% = 1400. This is the amount the ESFA hold back until completion.
    The remaining £5600 they will pay in monthly on programme payments. eg – if your apprenticeship duration is 24 month ESFA will pay 5600/24 = £233.33 every month.

    You need to ensure your TNP = £7000 otherwise you will not receive the correct funding. If you reduce it to £5600 this is the TOTAL amount you will receive.

     
    #381801

    Ruth CJ
    Spectator

    Gaynor is right. Also, there is no achievement incentive. There is a Completion Payment. The distinction is really important. You don’t have to achieve to get the 20%, just complete the EPA. This is further confused by the fact that the date you enter when they complete, goes in a field called “Achievement Date”, which is a misnomer.

    Don’t confuse the Completion Payment with the EPA cost, they are not the same thing. It just so happens that the EPA price is often 20% of the total TNP.

     
    #382028

    Matt
    Spectator

    Hi Ruth.

    I appreciate this is an old thread now, but I’m having trouble finding exact ESFA guidance on this even though I think I know the answer.

    TNP2 is assessment price in the ILR, but nothing to do with the 20% completion payment held until the end.

    So the 80% OPPs each month are actually 80% of the TNP1 AND TNP2, correct? So really you receive payments for TNP every month throughout the apprenticeship?

     
    #474482

    Ruth CJ
    Spectator

    Hello,

    Yes, the OPP payments are 80% of the total of TNP 1 and 2.

    You can see it in action if you find an apprentice, work out 80% of the total price, and divide that figure by the number of planned months. If you look at your monthly payment reports, you’ll see that amount there each month.

     
    #474484

    Matt
    Spectator

    Thank you for coming back so quickly!

    It’s one of those where I know the answer but can’t find exact proof in ESFA guidance and need to explain it to someone.

    They didn’t help themselves (or us) when they said EPA should be 20% of the max funding band!

     
    #474486

    Ruth CJ
    Spectator

    The funding rules explain in P218-P223. “Negotiated price” is the total of TNP 1 and 2. Also, the technical funding guide in paragraphs 39-47. It says “There is a completion element for the apprenticeship. This is 20% of the lower of either the total price or the funding band maximum”.

     
    #474488

    Ruth CJ
    Spectator

    No-one said the EPA should be 20% of the band maximum. The conditions for being on the EPA register says;

    5.1 The employer will select you and negotiate and agree a price with you for endpoint assessment. The price agreed will include only those items identified as eligible costs as set out in paragraph 5.7.

    5.2 Eligible costs should not usually exceed 20% of the funding band maximum for the standard. This does not mean that end-point assessment must always cost 20%. The price an individual employer will pay for end-point assessment will vary across standards and across EPAOs. In your negotiation with employers you must bear in mind the need to secure value for money.

    They are super clear that it’s a limit, not a target. EPA centres just going for the limit has led to so much confusion, as people think the assessment price and completion payment are one and the same, when they’re not.

     
    #474490
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