This guidance relates to England only. Scotland, Wales and Northern Ireland have their own separate funding arrangements. Any queries relating to the devolved administrations can also be directed to funding@i-l-m.com.
There are currently two types of apprenticeship in England:
Apprenticeship frameworks are made up of work-based qualifications with a blend of workplace and classroom-based learning. Apprenticeship frameworks are being phased out and we expect the Management Frameworks to be withdrawn in Spring 2018.
Apprenticeship standards cover a specific occupation and include the knowledge, skills and behaviours needed to become occupationally competent within that occupation. Apprenticeship standards also have an end-point assessment which must be carried out by an ESFA-approved Apprentice Assessment Organisation.
ILM offers the full range of apprenticeship frameworks and standards for leadership and management.
Each framework or standard is assigned a funding band maximum, which indicates the maximum amount of funding available for each apprentice. Providers and employers can negotiate and agree a fee within the band.
Employers can choose to deliver an apprenticeship at a higher rate than the funding band maximum, however they will need to pay the additional costs themselves.
ILM offers a range of management apprenticeship frameworks and standards, with funding band maximums are as follows:
Frameworks:
- Level 2 Team Leading - £1,500
- Level 3 Management - £2,000
- Level 4 Management - £2,000
- Level 5 Leadership and Management - £2,500
Standards:
- Team Leader/Supervisor (Level 3) - £5,000
- Operations/Departmental Manager (Level 5) - £9,000
- Chartered Manager Degree Apprenticeship (Level 6) - £27,000
The apprenticeship levy is paid by all UK businesses with an annual wage bill of £3m or more. It is paid each month via PAYE and redistributed to the following month, with a 10% top-up from Government. Employers can access their funds via the government’s online Apprenticeship Service.
Providers do not need an ESFA allocation to work with levy-paying employers. Levy-paying employers have access to their own funds so they can contract directly with providers, and funds are transferred via their digital account.
Find out more about the apprenticeship levy
Non-levied employers can still negotiate the cost of delivery with their training provider, however they must make a 10% contribution towards the overall cost*. A payment schedule is agreed prior to delivery and the provider must invoice the employer for their monthly contribution. The remaining 90% is paid to the provider from the Education and Skills Funding Agency (ESFA). Providers must therefore have an apprenticeship allocation from the ESFA
The ESFA will not trigger release of funds until the provider has given evidence that the employer has paid their 10% contribution.
* However Government will pay 100% of costs for small employers (with fewer than 50 staff) who take on any of the following:
- a 16-18 year old apprentice
- a 16-24 year old with an Education, Health and Care Plan
- a 16-24 year old care leaver.
End Point Assessment (EPA) is a mandatory component of all apprenticeship standards. EPA is synoptic and holistic assessment of the knowledge, skills and behaviours outlined in standard. EPA must be carried out in line with the requirements set out in each apprenticeship’s assessment plan and can only be carried out by an ESFA-approved Apprentice Assessment Organisation (AAO). ILM is an approved AAO for the Team Leader / Supervisor and Operations / Departmental Manager apprenticeship standards.
Find out more about End Point Assessment
While employers are responsible for selecting the AAO, it is the provider who has the contractual relationship with them. The provider will pay the AAO for End-point Assessment and funds will then be transferred to the provider from the Skills Funding Agency or the employer’s digital account. It is worth noting that 20% of the agreed delivery cost will be held back until End-point Assessment has been triggered by the training provider.
Public funding – which includes SFA contributions and employer levy funding – can only be used to cover the costs of training and assessment, including End-point Assessment. There are strict rules around what can and cannot be funded. Full details can be found in the funding rules for training providers, however some key examples are below:
| Can be funded |
Cannot be funded |
| Delivery and assessment costs associated with relevant qualifications |
Qualification registration fee (unless mandated within the standard) |
| Distance, online or blended learning relating to the off-the-job training element of an apprenticeship |
Apprentice wages |
| Materials (non-capital items) used in the delivery of the apprenticeship framework or standard |
Apprentice travel costs |
| Any administration directly linked to the training and assessment, including endpoint assessment. This includes costs relating to the development of teaching materials, lesson planning, the processing of the ILR and quality assurance. |
Any delivery which is done entirely by distance learning |
| End-point Assessment resits, where additional learning takes place. |
End-point Assessment resits where no additional learning takes place |
| Workbooks and learning resources, including where purchased from a third party. |
Any training or materials not relating to the standard. |
English and maths, where needed, are funded separately at a rate of £471 per subject.
*All ILM qualifications are awarded by The City and Guilds of London Institute which was founded in 1878 and is incorporated by Royal Charter.
