Small Employer incentive

Home Forums Data issues Small Employer incentive

This topic contains 8 replies, has 5 voices, and was last updated by  Hughes18 1 year, 2 months ago.

Viewing 9 posts - 1 through 9 (of 9 total)
  • Author


    1) Can someone please confirm my understanding that even though p96 of the Apprenticeship funding rules for TP’s V2 states ‘recruits an eligible apprentice’ that they are also eligible for the small employer incentive if they enrol an existing employee aged 16-18 onto an apprenticeship programme?

    p96:’You must not request any employer contribution (please see paragraphs 171 to 176) 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’

    2) P99 also states that the size of the employer at the start of the learners apprenticeship ‘ must be calculated using the average number of employees with a contract of employment in the 365 days before the apprentice is recruited’….
    so if the learner is an existing employee who was recruited 6 months ago – is the calculation of average taken from the 365 days prior to their start date at their employment date or 365 days prior to the date they start their apprenticeship? Because they may have had less than 50 employee average when they first recruited their employee but at the start of their apprenticeship may have an average now of over 50



    Martin West

    When you do the calculation, it must be =< 50 and not >50, but If you do get that actual scenario you can always ask the ESFA.



    Sorry Martin maybe I was not clear enough- that bit I am aware of…. but it is when the calc is taken from I need clarification on… and is the incentive valid for only new recruits or also for existing employees?


    Martin West

    Recruited implies as at their start of employment but as I have said, If you do get that actual scenario you can always ask the ESFA.



    Another question! :

    We are aware we cannot offset the essential 10% employer contribution from the incentive payment as the contribution needs to be evidenced as being actually paid out by the employer. However, in the event that we need to charge an additional employer contribution above and beyond the essential 10% where the negotiated price is above the maximum funding band; with the employers written agreement, could we hold back charging this extra amount if the employer is entitled to the Small employer incentive payment, until the 3 month incentive payout point and deduct our fees from what we pay to them at that point?

    • This reply was modified 1 year, 2 months ago by  KBALL.

    Martin West

    I would not think so, best advice is to stick to the intention of the funding rules as this may be seen as an audit issue.



    Can I chip in on this. In P96 it talks of an ‘eligible apprentice’, as far as I can see an eligible apprentice is set out in P53-P65. Does P96 refer to recruiting an apprentice who fits into this eligibility? And not 16-19 as the use of the word eligibility does not state as set out in P95? HELP!


    Ruth CJ

    I think the new recruits vs existing employee question does need definitively answering by the ESFA. AGE Grant only related to new recruits, but I don’t think the rules are clear on this for the small employer incentive.



    Hi All
    I was advised incorrectly to start in respect of these incentives, but my Account Manager has sought the actual guidance. Basically the Funding Rules imply that new employer may be eligible for incentives, but this just means “only if the incentive has not already been paid out to the first employer”.
    If the learner leaves the first employer before 3 months, the new employer where eligible will receive the incentives. If the learner leaves after 3 months, the new employer will only receive the remaining incentives, which are due 12 months times.
    Hope this helps.

Viewing 9 posts - 1 through 9 (of 9 total)

You must be logged in to reply to this topic.