Small employer bits and pieces

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Home Forums Data issues Small employer bits and pieces

This topic contains 4 replies, has 2 voices, and was last updated by  Cris Hale 3 years, 10 months ago.

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  • Cris Hale
    Spectator

    Hi all,

    Just trying to understand various interconnected mechanisms for small employers.

    1. There is a Small Employer indicator on the ILR and I understand this is mandatory for funding model 36. I assume I’ll need to record this on the paperwork somewhere; the part I’m not so sure about is whether this automatically triggers any other mechanisms, in particular those described below.
    2. There is a waiving of the contribution fee. I’m struggling to tell if this is only for 16-18-year-old learners or applies to all.
    3. There is an incentive payment of £1,000 for employer and provider. I believe this is for 16-18s only.

    So I need to know if small employers must all sign a declaration to that effect and as I understand it currently, it looks as though there are no additional ‘benefits’ for 19+ learners, so would the state aid declaration be necessary for 19+ or would confirmation of the number of employees alone do?

    Any thoughts appreciated…

    Cris

     
    #162865

    Martin West
    Spectator

    Extra support for small employers

    P93. The government will fund all of the apprenticeship training costs, up to the maximum value of the funding band for the apprenticeship, for employers employing fewer than 50 people, if on the first day of the apprenticeship, the apprentice is:

    93.1. aged between 16 and 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August)

    93.2. aged between 19 and 24 years old and either has:

    93.2.1. an EHC plan provided by their local authority

    93.2.2. or has been in the care of their local authority as defined in paragraph 87

    P94. You must not request any employer contribution (please see paragraphs 168 to 173) to the cost of an apprenticeship up to the maximum value of the funding band if an employer employing fewer than 50 people recruits an eligible apprentice.

    P95. If the price agreed between you and the employer is above the maximum value of the funding band for the apprenticeship, the employer must pay in full the difference between the band maximum and the agreed price. This cannot be funded from an employer’s digital account.

    P96. Before any apprenticeship starts, you must have evidence that the apprentice and employer are eligible for the waiving of the employer contribution. The employer must provide evidence that they employed an average of 49 or fewer employees in the 365 days before the apprentice was recruited using the calculation set out in paragraph 47.3, and you must keep this in the evidence pack.

    P97. We define the number of employees as the number of people with a contract of employment. This must be calculated using the average number of employees with a contract of employment in the 365 days before the apprentice is recruited. If the average number of employees is 49 and the recruitment of apprentices takes this number to 50, the employer will still be eligible to receive this extra support. However, if the average number of employees is 50 and the recruitment of apprentices takes this number to 51, the employer will not be eligible to receive this extra support.

     
    #162870

    Cris Hale
    Spectator

    Hi Martin,

    So by the sounds of it, if you take on an apprentice of 19+ (with no special particulars as described above) at a small employer, you get 10% less funding than you would with an employer of 50+ employees, since you must waive the contribution but the (E)SFA won’t fully fund. Have I understood that right?

    So for my first point, I’m taking P94 “You must not request any employer contribution…” and P96 “…you must have evidence…” to mean that we need a declaration, regardless of age.

    For my second point then, if the SFA won’t pay the waived contribution for 19+ learners I would take that to mean that a State Aid declaration was unnecessary for them.

    Regards,

    Cris

     
    #162891

    Martin West
    Spectator

    Hi Cris,
    You completely misunderstand as you get the same funding for a 19+ without an EHC irrespective if is a small employer as P94 only refers to an eligible apprentice as defined in P93.
    HTH

     
    #162907

    Cris Hale
    Spectator

    Hi Martin,

    Thanks – as you may have noticed, I’m very bad at making implicit assumptions about how the rules relate to each other. I wish they would start stating it clearly.

    I’m assuming you’d still complete the small employer indicator on the ILR regardless of the apprentice’s age.

    I’m also taking from it for granted that a State Aid declaration is definitely not necessary for a 19+ learner.

    Regards,

    Cris

     
    #162926
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