State Aid

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This topic contains 8 replies, has 4 voices, and was last updated by  Martin West 4 months, 1 week ago.

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  • joanne2018
    Participant

    Hi there,

    Is anyone else collecting State Aid declarations for levy paying employers?

    Thanks,

    Joanne.

     
    #257559

    Martin West
    Participant

    Hi Joanne,
    As it only applies as outlined below I do not think this is a requirement, I cannot find such in the funding rules.

    The ESFA have amended the employer agreement:

    State aid – clause 9
    This clause has been revised to reflect the new functionality for transfers.
    Transferred funds paid on behalf of a receiving employer will constitute de minimis state aid under Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the applications of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid. The amount of de minimis state aid amounts to 10% of the total transferred funds.
    State aid only applies to the following funds in the apprenticeship service:
    SME entitlement to full funding i.e. the additional 10% paid for these employers
    The reports that an employer receives will identify any payments in the above categories. Due to the size of employers that pay the levy, and the limited timeframe for AGE payments to continue, we expect these payments to be small or zero for the majority of employers.
    The reporting we will provide is to help employers monitor the state aid they may receive through the apprenticeship service alongside any received from other sources. It is the responsibility of the employer to monitor and manage the overall level of state aid they receive.
    When an employer is accessing funds under paragraph 168 of the funding rules (apprenticeship funding rules and guidance for employers) we do not consider this to be state aid: because it is government funding for education and training which is available to all employers on the same basis.
    It is up to an employer to ascertain whether they are receiving any other sort of funding from the ESFA (for example, under paragraph 169 of the funding rules) which could be state aid and also whether they are receiving public funding from any other body which might take them over the de minimis threshold. ESFA is not in a position to know this and cannot advise. Employers should follow their own legal advice about whether they are receiving state aid funding.

     
    #257594

    joanne2018
    Participant

    That’s great, thanks Martin.

     
    #257627

    GnilS
    Participant

    I am just looking for some clarification on the State Aid Declaration requirements;

    P198. Receipt of the AGE grant by employers and the waiving of the employer contribution
    for small employers, (see Annex E) are subject to state aid regulations.

    Is it a requirement to collect State Aid declarations for those employers that have less than 50 employees and are waived from the 10% contribution requirement?

    Annex E – only relates to AGE Grants.

    Do the Additional payments for employers (incentives) require a State Aid Declaration?

     
    #261114

    Martin West
    Participant

    Hi,
    SME entitlement to full funding i.e. the additional 10% paid for these employers
    The reports that an employer receives will identify any payments in the above categories. Due to the size of employers that pay the levy, and the limited timeframe for AGE payments to continue, we expect these payments to be small or zero for the majority of employers.
    The reporting we will provide is to help employers monitor the state aid they may receive through the apprenticeship service alongside any received from other sources. It is the responsibility of the employer to monitor and manage the overall level of state aid they receive.

    See the above where it is down to the employer and I can find no requirement in the funding rules that involves Providers.

    HTH

     
    #261126

    GnilS
    Participant

    This is a topic that I found – although it is from May 2017 – where someone had mentioned that Service Desk informed them they should be collecting State Aid Declarations for those small employers?

    http://feconnect.sfa.bis.gov.uk/forums/topic/p211-8-state-aid-declaration/

    The statement below is from the Performance Management rules for Training Providers –

    P198. Receipt of the AGE grant by employers and the waiving of the employer contribution
    for small employers, (see Annex E) are subject to state aid regulations.

    I understand that employers should be responsible for understanding what state aid they have accessed so far, but this would have been the same for when they had to complete this for AGE Grants – they are just declaring what they have received to the training provider, and this would’ve been their responsibility back then to know what they have or haven’t claimed?

    But we could still be responsible to collect this information from them, even if it is not our responsibility to check?

     
    #261143

    Martin West
    Participant

    In reality a small employer has little to no chance of reaching the limit anyway and as the ESFA will be reporting this to employers this is then one less task for providers.

     
    #261150

    Steve
    Participant

    Hiya

    Sorry to resurrect an old thread. Just reading the funding rules for employers and it says this for state aid:

    E174. The waiving of the employer contribution for small employers is subject to state aid regulations.

    E175. Transfers of funds are subject to state aid regulations. For any transfer you
    receive, 10% of the transferred funds will count towards your de minimis state aid limit.

    E176. You must complete a state aid declaration for funding you receive. You must
    give this to the main provider to keep in the evidence pack. If you have any concerns about exceeding your state aid limit, please contact your main provider for further guidance.

    My question is whether there is a set format for the State Aid Declaration? The only ones I can find relate to AGE grants or other projects.

    Cheers

    Steve

     
    #277653

    Martin West
    Participant

    Hi Steve,
    Did you read the thread as there is no indication of a set declaration for this from the ESFA, but the following may help?

    This is the process that the University Vocational Awards Council are using for this.
    The advice for Providers is:

    State aid New rule (from April 2018): Confirmation that levy transfers are subject to state aid regulations
    You must ensure the employer completes a state aid declaration for funding they receive.
    You are responsible for retaining a copy of this declaration in the evidence pack.

    Update employer responsibilities leaflets, and responsibilities leaflets, and checklists
    Update your employer declaration / create a State Aid Declaration
    Update your pre start/operational signoff
    Update your Evidence Checklist

    HTH

     
    #277704
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