Who can be funded?

How to work out who can get apprenticeship funding. Includes financial support for apprentices with additional learning needs.

Individuals who are eligible for funding

New for 1 August 2022:

We have moved the rule that relates to financial contributions by an apprentice to a new sub-section under ‘Paying for an apprenticeship’.

Due to the increase in home-working, we are reviewing the rules on time spent working in England and will update the rules in due course.

We have moved the rule that relates to an apprentice becoming unemployed or self-employed during the apprenticeship to the ‘Individuals who are not eligible for funding’ section.

New for 30 September 2022 - version 2

  • E62 to E63 - New rule: We have updated the rules to reflect that from 30 September 2022, prisoners can access apprenticeships under alternative arrangements.

E54

You can only use funds in your apprenticeship service account, or government-employer co-investment, for those who are eligible. You must give the main provider evidence of the individual’s eligibility.

E55

To use funds in your apprenticeship service account or government-employer co-investment, the individual must:

  • E55.1 Start their apprenticeship after the last Friday in June of the academic year in which they have their 16th birthday.

  • E55.2 Be able to complete the apprenticeship within the time they have available. If you know an individual is unable to complete the apprenticeship in the time they have available, they must not be funded.

  • E55.3 Not use a student loan to pay for their apprenticeship. Where an individual transfers to an apprenticeship from a full-time further education or higher education course and that course has been funded by a student loan, the loan must be terminated.

  • E55.4 Spend at least 50% of their working hours in England over the duration of the apprenticeship.

    • E55.4.1 When determining eligibility at the start of the apprenticeship, you must be confident that the apprentice will spend at least 50% of their working hours in England over the duration of the apprenticeship. For working hours to be counted in the 50% limit, they must be regular, planned and known at the start of the apprenticeship Refer to Annex A (paragraph E327) for exceptions to this rule.

    • E55.4.2You must make separate arrangements with the relevant devolved administration if you are planning to deliver apprenticeships to individuals who spend more than 50% of their working hours in a devolved administration over the duration of their apprenticeship, including time spent on off-the-job training

  • E55.5 Have the right to work in England.

  • E55.6 Have an eligible residency status (information can be found in the residency eligibility section in Annex A).

E56

You can only use funds from your apprenticeship service account or government-employer co-investment for apprentices employed by you or a connected company or charity as defined by HMRC. You must provide evidence of employment to the main provider. This also applies where the apprentice is funded by a transfer of funds from another employer.

E57

We will fund an apprentice to undertake an apprenticeship at a higher level than a qualification they already hold, including a previous apprenticeship.

E58

We will fund an apprentice to undertake an apprenticeship at the same or lower level than a qualification they already hold, if the apprenticeship will allow the individual to acquire substantive new skills and you can evidence that the content of the training is materially different from any prior qualification or a previous apprenticeship.

E59

The age of the apprentice on the day they start their apprenticeship will be used for all age-based eligibility criteria for that apprenticeship.

E60

An apprentice’s eligibility will not change during the apprenticeship, unless their employment status also changes.

E61

If an apprentice is made redundant, we will continue to fund their training, even if they cannot find another employer, in the circumstances below:

  • E61.1 Apprentices who are made redundant on or after 15 October 2020 and are either within six months of the final day of the apprenticeship practical period OR they have completed at least 75% of the apprenticeship practical period. These apprentices will be funded to completion (subject to the conditions set out in paragraph E254).

  • E61.2 Apprentices who do not meet the conditions of paragraph E61.1 above. We will fund the training of these apprentices for 12 weeks while they seek a further apprenticeship agreement (see paragraph E255).

E62

Where an individual is in prison, to be eligible for apprenticeship funding they must:

  • E62.1 start their apprenticeship on or after 30 September 2022; and

  • E62.2 be eligible for Release on Temporary Licence (RoTL) to undertake their apprenticeship

E63

It is intended that prisoners will complete part of their training while in custody and part after release into the community. As a minimum, however, no prisoner apprentice may undertake end-point assessment prior to release.

E64

Military prisoners, immigration detainees and prisoners on remand are ineligible for apprenticeships offered in prisons.

Individuals who are not eligible for funding

New for 1 August 2022:

  • E67.1 - New rule: To reflect that individuals who are self-employed as a sole trader are ineligible for funding (this previously said self-employed).

  • E67.2 - New rule: To reflect that a shareholder / director with no separate identifiable line manager to undertake the role of ‘employer’ is ineligible for funding. The same person must not sign the apprenticeship agreement as both the apprentice and the employer.

  • E67.2.1 - New rule: To reflect that if during their programme an apprentice becomes unemployed, self-employed as a sole trader, or becomes a shareholder / director with no separate identifiable person to undertake the role of employer, they will no longer be eligible for funding and must be reported on the ILR as having withdrawn from the apprenticeship. If the apprentice has been made redundant, see paragraph E61.

New for 30 September 2022 - version 2

We have removed the rule about prisoners not being eligible for apprenticeships to reflect legislation which from 30 September 2022, enables prisoners to access apprenticeships under alternative arrangements.

E65

You must not use funds in your apprenticeship service account for individuals who do not meet the eligibility criteria set out in this document unless they are eligible under the Education (Fees and Awards) (England) Regulations 2007 (as amended). Individuals who do not meet the eligibility criteria include those who:

  • E65.1 Are here illegally;

  • E65.2 Are resident in the United Kingdom on a student visa unless they are eligible through meeting any other of the categories described in Annex A;

  • E65.3 Are in the United Kingdom on holiday, with or without a visa;

  • E65.4 Have overstayed their immigration or visitor visa;

  • E65.5 Are a family member of a person granted a student visa, have been given immigration permission to stay in the UK and have not been ordinarily resident in the UK for the previous three years on the first day of learning;

  • E65.6 Are ordinarily resident in the Channel Islands or Isle of Man, unless they are also ordinarily resident within England; or

  • E65.7 Have a biometric residence permit or residence permit imposing a study prohibition or restriction on the individual.

E66

To use funds in the your account or government-employer co-investment, the individual must not:

  • E66.1 Be undertaking another apprenticeship;

  • E66.2 Be undertaking training funded through the Adult Education Budget (AEB), where that training will:

    • E66.2.1 Replicate vocational and other learning aims covered by the apprenticeship standard or framework, including English and maths;

    • E66.2.2 Offer career related training that conflicts with the apprenticeship aims; or

    • E66.2.3 Be taking place during working hours.  Where an apprentice has more than one job, working hours refers to the hours of the job the apprenticeship is linked to.

  • E66.3 Be in receipt of any other direct DfE funding during their apprenticeship programme; this includes any other DfE funded FE/HE programme including programmes funded by a student loan, but excludes funding outlined in E65.2; or

  • E66.4 Undertake any part of an apprenticeship whilst on a sandwich placement as part of a degree programme.

E67

As an exception to E65.2, an individual may commence an apprenticeship and attract funding, where they have less than four weeks to completion of an existing DfE funded course.

E68

To use funds in the employer’s apprenticeship service account or government-employer co-investment, the individual must also not be:

  • E68.1 A prisoner in custody or a prisoner released on temporary license.

    • E68.1.1 The policy of the Ministry of Justice is that prisoners, both in custody and released on temporary license, cannot sign a contract of employment. As this cohort is not covered under the Alternative English apprenticeship arrangements, they are not eligible for funding (see paragraphs E25 to E26).

    • E68.1.2 The government intends to bring forward legislation later in the year to allow prisoners to access apprenticeship opportunities.

  • E68.2 Self employed as a sole trader (a person who conducts business by their own personality and not with any other corporate personality).

  • E68.3 A shareholder/director with no separate identifiable line manager to undertake the role of ‘employer’, as defined by these funding rules. By this we mean it is prohibited for someone to sign a contract, including an apprenticeship agreement, as both the apprentice and as the employer (even where a limited company, public services company, a partnership, or limited liability partnership has been created to act as a separate corporate entity).

    • E68.3.1 During the programme, if an apprentice becomes unemployed, self-employed as a sole trader, or becomes a shareholder / director with no separate identifiable person to undertake the role of employer, they will at that point no longer be eligible for funding and you must report them as having withdrawn from the apprenticeship on the ILR. If the apprentice has been made redundant, see paragraph E61.

Apprentices who need access to learning support

E69

We will provide learning support funding to meet the costs of putting in place reasonable adjustments, as set out in section 20 of the Equality Act 2010, for apprentices who:

  • E69.1 Have a learning difficulty or disability as defined in Section 15ZA(6) of the Education Act 1996 (as amended by section 41 of the Apprenticeships, Skills, Children and Learning Act 2009); and

  • E69.2 As a result of this learning difficulty or disability, require reasonable adjustments in order to be able to complete their apprenticeship, including any reasonable adjustments to complete English and maths requirements and end-point assessment.

  • E69.3 This can be claimed by your main provider for the period it is required. This will not be deducted from your apprenticeship service account or require employer co-investment.

E70

A learning difficulty or disability that does not require reasonable adjustments or cannot be evidenced as directly impacting on the apprentice’s ability to complete their apprenticeship will not be eligible for learning support funding. Learning support is not available:

  • E70.1 To deal with everyday difficulties, which includes the definition as per Section 15ZA(7) of the Education Act 1996, that are not directly associated with an apprenticeship. (If an apprentice needs help at work, they may be able to get help from Access to Work).

  • E70.2 To address any learning gaps in an apprentice’s prior knowledge, skills, or behaviours where these are relevant to their apprenticeship, but where there is no identified learning difficulty or disability in respect of obtaining this learning.

  • E70.3 Where there are no costs incurred in putting in place reasonable adjustments.

Flexi-Job Apprenticeship Agency (FJAA)

New for 1 August 2022:

E71

A FJAA is an organisation whose main business is employing apprentices who are made available to other employers. FJAAs are targeted at sector or professions where existing employment models present a structural barrier to the traditional apprenticeship route.

E72

In order to operate as a FJAA, organisations must apply to join the Register of Flexi-Job Apprenticeship Agencies.

E73

A FJAA must be set up as a distinct legal entity so that apprentices can have contracts of employment with the FJAA.

E74

The main provider must report in the ILR that the apprentice is employed by a FJAA.

E75

You must report in your apprenticeship service account that the apprentice is following the FJAA model (i.e. they are going on placements with host employers). Should you employ any apprentices that are not following this model (i.e. they are not being placed with host employers and their role is solely based with the FJAA) then you must not flag these as being a FJAA apprentice.

E76

Apprenticeship positions offered by a FJAA must comply with the apprenticeship requirements set out in these rules. The FJAA is responsible for paying the apprentice their wages (through the PAYE scheme declared in the apprenticeship service account), however these costs can be reclaimed from the host employer(s).

E77

Where there is a gap between placements with host employers, you must continue to employ and pay the apprentice. Where possible, your provider should continue training the apprentice (off-the-job training or English and maths) – where no learning is undertaken in a 4 week period then this must be treated as a break in learning (see paragraph E28.2).

Apprenticeship training agency (ATA)

New for 1 August 2022:

This section of the rules is currently under review.

Following the launch of the Flexi-Job Apprenticeship Agencies, the Apprenticeship Training Agency (ATA) register is now closed.

  • E82 - Clarification: To confirm that host employers can send transfers to ATAs to support apprenticeships.

New for 30 September 2022 – version 2

  • From 1 April 2023 only organisations on the Register of Flexi-Job Apprenticeship Agencies will be able to start new apprenticeships which are delivered via a model where you place apprentices with host employers for the majority of their apprenticeship (i.e. more than 50% of the apprenticeship duration).

  • Any apprenticeships which begin before 31 March 2023 can continue to be delivered through an ATA, but new starts under this delivery model will not be permitted from 1 April 2023 (see paragraph E20.3).

E78

An Apprenticeship Training Agency (ATA) is an organisation whose main business is employing apprentices who are made available to employers.

E79

An ATA must be set up as a distinct legal entity so that apprentices can have contracts of employment with the ATA.

E80

The main provider must report in the ILR that the apprentice is employed by an ATA.

E81

Apprenticeship positions offered by an ATA must comply with the apprenticeship requirements set out in these rules. If the job is with a third party, the cost of wages may be met by that third party, but the wages must be paid by the ATA.

E82

Where you are a levy paying ATA, these costs must be met from your own apprenticeship service account. Where you do not pay the apprenticeship levy, then you can access support for training and assessment through government-employer co-investment.

E83

Where you host an apprentice that is employed by an ATA you must not use the funds in your apprenticeship service account to pay the training and assessment costs. The only exception to this is if you fund the apprenticeship via a transfer of levy funds; further details can be found in paragraphs E210 to E240. By agreeing to fund the apprenticeship via a transfer of levy funds, you are committing to fund the apprenticeship for the whole duration and not just the period that you host the apprentice.

E84

Group training associations that offer an ATA service to employers must follow ATA-specific rules.