Prime charging management fee on incentives

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This topic contains 7 replies, has 5 voices, and was last updated by  OG92 3 weeks, 3 days ago.

Viewing 8 posts - 1 through 8 (of 8 total)
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  • OG92
    Participant

    Hello everyone,

    I was wondering if there is some guidance surrounding whether a prime can take a % fee off either a provider or employer incentive for 16-18 year olds.

    My feeling is that this should be a direct payment from the ESFA to the employer and provider, but I can’t find anything to support this argument.

    Any help would be greatly appreciated.

    Thanks

     
    • This topic was modified 3 weeks, 5 days ago by  OG92.
    #399255

    steveh
    Participant

    Well the employer is due £1,000, that’s pretty indisputable and the relationship is (officially) between the prime and the employer, not the subby, so if the prime is only paying them, say, £900 (£800?) then they’re in breach of the funding rules that say they’ve got to pay them £1000…

    A *lot* murkier in terms of the provider payment because the prime *is* the provider. What they give the subby is purely a contractual issue between the two parties.

     
    #399270

    GaynorLF
    Participant

    https://www.gov.uk/government/publications/apprenticeship-funding

    It clearly states in these docs that the £1000 Employer incentives will be paid to Providers who will pass the money on.

    I agree with Steve that they are in breach of the Funding Rules if they are not passing the total funds on to the Employers

     
    #399296

    OG92
    Participant

    Thanks both.

    I think really the main issue was me perhaps hoping that the provider incentive was the same as the employer incentive, in that it should be exempt from such fees.

    I guess we will have to battle it out as it’s not in the contract.

    Thanks again

     
    #399306

    Ben.Feighery
    Participant

    just a thought for non-levy, but if the prime is trying to keep a % of your provider incentive, are they also asking you for a % of the co-investment that you collect from an employer? or if they are collecting that direct from the employer, are they passing on the other % of that to you as well as the ESFA portion?

    Ben F.

     
    #399486

    OG92
    Participant

    Their calculation seems to deduct the entire Employer Contribution proportion.

    Which doesn’t seem right if they take a blanket % of our funding as a man. fee!

    Many thanks for raising this point

     
    #399692

    Martin West
    Participant

    Hi,
    That’s correct they would exclude the Employer incentive as they are responsible for payment direct to the employer.
    Any employer incentives are not part of delivery funding, I do not see an issue.

     
    #399698

    OG92
    Participant

    Martin,

    They currently send us the employer incentive to pass on but with a man. fee deducted. Will ensure they pass this directly to employer.

    Ben I think was then raising whether they are also paying us the full amount due to us of co-investment payments as they go direct from employer to prime (and they were not doing).

    Thanks

    Owen

     
    #399700
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