What employers can expect when a training provider has their funding terminated

An apprenticeship training provider may no longer be able to deliver apprenticeship training if their funding agreements with Department for Education (DfE) and/or Education Skills Funding Agency (ESFA) are terminated.

Employers will be notified

DfE will issue an initial communication notifying employers who have employees actively learning on an apprenticeship of the termination.

Once DfE has collected further up-to-date information from the training provider, they will send a second communication to employers which will include a link to a survey.

What employers should do next

To ensure the apprentice can continue their training, the employer will need to fill out the survey to inform DfE of how they wish to proceed.

There are three options available to employers:   

1. Completion with the current provider

If the provider is serving a period of notice, it may be possible that during this time the apprentice will be able to complete their mandatory training up to ‘Gateway’.

In this instance, employers may agree with the provider that existing delivery arrangements can continue.

If the apprentice has passed Gateway before the provider’s termination date is reached, the provider may be able to continue to support the apprentice through the end-point assessment, even after the termination date of their funding agreement has passed.  

2. Employer-led transfer

Employers can transfer their employee’s apprenticeship training to another training provider that they already work with.

Alternatively, the employer can choose to independently source a new eligible training provider using the Find Apprenticeship Training service.

3. Support from the DfE

Though DfE encourage employers to seek their own alternative apprenticeship through an employer-led transfer, we can provide support where required.

Further information on the options available to employers can be found in our employer funding agreement guidance.

Need support?

More information can be found in the termination of ESFA funding guidance collection, which includes guidance for providers, learners and employers.

The employer guidance covers topics such as funding implications, employer co-investment payments and end-point assessments.

For support with apprenticeships and using the apprenticeship service, you can contact Apprenticeship Support.