New Employer Incentives

Home Forums Data issues New Employer Incentives

This topic contains 32 replies, has 11 voices, and was last updated by  JoHull 2 weeks, 1 day ago.

Viewing 25 posts - 1 through 25 (of 33 total)
  • Author
    Posts

  • Michelle L
    Participant

    Morning everyone Happy Friday! Does anyone know when these payments will be made? In line with current incentives perhaps i,e month 3 and 12?

     
    #451825

    M1
    Participant

    Hi Michelle

    There are no details of this at the moment as far as I’m aware and it is also not known how the actual payment will take place (provider etc.).

    More details to be released.

    HTH

    Mark

     
    #451833

    chrisbradley
    Participant

    Hi both,

    do you think it should appear in an update to the apprenticeship technical funding guide?

    Chris

     
    #451835

    steveh
    Participant

    Hiya

    Apps twitter account promised an update next week (as did Peter Mucklow on Nick Linford’s webinar yesterday):

    https://twitter.com/Apprenticeships/status/1281200987340967936

    Working assumption is the easiest thing to do is pay them at 90 and 365 days, but you know what “assume” did…

    Also, cannot think that any of this will apply to starts before 1 August, *waaaaaaaaaay* too messy to add in at this point…

     
    #451849

    Michelle L
    Participant

    Hi Steve, I think at the moment it’s only for starts Aug 20 – Jan 21. Not very helpful in the case we have already had two employers who now want to delay their starts from July to Aug

     
    #451872

    steveh
    Participant

    Yeah, bound to be a bit of that (remember when employer contribution changed from 10% to 5%, to give a recent example)…

     
    #451878

    Michelle L
    Participant

    Hi, This confirms the payment schedule for new incentives / bonuses and also that the Apprentice has to be NEW employee and cannot be an incumbent member of staff.

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/900154/Apprenticeship_funding_in_England_from_Aug_2020_Policy_Document_FINAL.pdf

     
    #452708

    Veronica
    Participant

    Following todays release (above link), I still find myself with more questions than answers.

    The link talks about claiming the incentive through the apprenticeship service – what about those smaller employers who are not on the Apprenticeship Service yet?

    And, when it talks about the payment being made directly to employers in two equal instalments, will they be paying the money into the employers DAS account or into their bank accounts?

    Would be interested in the thoughts of others on this, if indeed anyone has the answers at the moment.

     
    #452732

    Michelle L
    Participant

    Being as all new apprenticeships ideally need to be done through the Apprenticeship Service, using reserved funds, then any non levy employers taking on a new Apprentice would simply register on the service and reserve the necessary funds. That way any bonus / incentive can be paid via the AS.

     
    #452793

    steveh
    Participant

    “simply”! 😉

    But, yes, looks like the bonus payments will be a carrot to get non-levy employers to sign up to AS. Reading between the lines, Apps on contracted non-levy won’t be eligible (but you could use that funding, if you have it, for existing staff).

    The question about ESFA paying the bonuses directly is a good one, there will have to be new systems to deal with it (also, does it mean employers will be subject to audit???).

     
    #452812

    Veronica
    Participant

    Unless there is clarity, there is the potential for non levy employers to take on apprentices (and to so via the providers contracted non-levy) and potentially miss out on the incentive. Also, if it is paid VIA the AS, will that mean that the money is effectively ring fenced and can only be spent on apprenticeship training… in which case its not really an incentive. Also, the fact that the requirement for small employers to go onto DAS has been further pushed back it gives the impression (to employers) that they don’t need to do it just yet… but in fact they may HAVE to do it now IF they want to benefit from the incentive. We deal with a lot of small employers and feel that there are more questions than answers at the moment

     
    #452819

    Michelle L
    Participant

    Yes Steve, I use the word “simply” in the loosest possible term! 🙂

    The end goal is to have ALL apprenticeships on the AS and it may have been pushed back yes, but as with the end of frameworks, it will happen eventually. We are advising all our small non levy employers that being as the guidance specifically says “we are moving away from the use of Government-procured contracts for apprenticeship training” there will very soon be no choice. May as well start as you mean to go on. Now they have increased the number of starts from 3 to 10 should help.

     
    #452830

    steveh
    Participant

    I think it’s clear that non-levy contracted *won’t* get the bonus, so get them on AS.

    I’m 90% sure that they will be paid cash, rather than it going back into their App pot, ESFA just haven’t explained the mechanics for this yet.

    And, yes, I think it’s up to providers to guide employers through this, they’re unlikely to know the ins and outs of how funding works anyway!

     
    #452839

    donna1805
    Participant

    Hi – If a learner starts a new employer on the 1ST of August will they be able to claim the new incentive?

    Thank you

     
    #452849

    steveh
    Participant

    “yes”?

    Awaiting further detailed confirmation, but that’s the gist of yesterday’s document…

     
    #452854

    donna1805
    Participant

    Thanks Steve
    This learner has been on programme since March but was made redundant due to COVID19, therefore they are not a “new learner” and will continue their apprenticeship with their new employer?

    Thank you
    Donna

     
    #452856

    steveh
    Participant

    Hahaha, there’s always one! 😉

    On the basis that they’re not starting their (whole) apprenticeship after 1 August, I’d tend towards “no”, but couldn’t be sure…

     
    #452858

    Michelle L
    Participant

    I’d agree Steve – it must be a new Apprenticeship as well as a new employee according to the guidance

     
    #452864

    MartinOutlaw
    Participant

    Hi,

    Does the “new employee / new apprenticeship” mean that a school leaver who has previously done some part-time work for an employer would be excluded from the additional incentives when they take up full time employment and an apprenticeship programme?

    It sounds like it will, but seems harsh to me.

    Martin

     
    #452870

    Michelle L
    Participant

    The funding guide specifies…
    “The apprentice must be a new employee to the business, have a contract of
    employment start date between 1 August 2020 and 31 January 2021 (inclusive)
    and must not have been employed by the employer within the six months prior to
    the contract start date.”

    I suppose it will depend whether their part-time work was within the last 6 months of any intended apprenticeship start date??

     
    • This reply was modified 4 weeks, 1 day ago by  Michelle L.
    • This reply was modified 4 weeks, 1 day ago by  Michelle L.
    #452872

    Ruth CJ
    Participant

    My questions I want answered from the guidance once it’s out;

    – How new is “new”? Does their first day of employment have to be their apprenticeship start date? Will there be some leeway? Starts gets delayed for all sorts of reasons.
    – How do we evidence “new”? I assume just an employer declaration, same as for small employers.
    – Does an employer have to have been through the reservation/commitment process to apply for this? If so, that’s brought our plans for that rushing forward, we though we had until April.
    – Who applies, us or the employer? Will this be one of the things they give us permission to do?

     
    #452876

    MartinOutlaw
    Participant

    Michelle,

    Yes, the question is about the part time employment being within 6 months of the apprenticeship start date, and it doesn’t fit with paragraph 8 of the policy document that you have quoted.

    I was wondering if anyone was aware of any leeway, more specific guidance that would avoid such hard working school leavers being passed over because the employer can get an extra 2k for taking on somebody else instead.

    Martin

     
    #452878

    JoHull
    Participant

    I totally agree Martin, there needs to be some flexibility regarding part time work within 6 months prior to start date. We have hairdressing employers ready to progress their Saturday people onto apprenticeships but looks like they won’t be able to claim the new incentives according to the rules.
    Surely a clause of some sort will be added to the guidance to prevent these potential apprentices who are just finding their feet and gaining confidence being let go and replaced by someone else.

     
    #453872

    steveh
    Participant

    Not to be too cynical (moi?), but can’t see it happening. There are bound to be edge cases like this, but can’t see them being eligible, they need to be proper new starters to get the bonus.

     
    #453890

    Ruth CJ
    Participant

    Not that I’m encouraging fraud, but if an employer took it upon themselves to self declare that the apprentice is brand new, who would know otherwise? Auditors don’t go and check employer payroll info, or cross check HMRC data, as far as I know.

     
    #453956
Viewing 25 posts - 1 through 25 (of 33 total)

You must be logged in to reply to this topic.