Understanding apprenticeship funding when transferring apprentices to new training providers

Overview

This guidance explains what happens to apprenticeship funding when your training provider closes or you need to transfer your apprentice to a new training provider. It applies to apprentices who started on or after 1 May 2017.

Contents 

1. What happens to funding when an apprentice transfers
2. What you need to do
3. Agreeing the price for the remainder
4. Prior learning and reduced cost
5. Understanding the funding remaining
6. Key points to remember when transferring apprentices

7. Support

    

1. What happens to funding when an apprentice transfers

• Apprenticeship funding does not restart when you change a training provider
• Some funding will likely have already been used by the previous training provider
• The total funding available for an apprenticeship is capped at the funding band maximum (FBM) for the apprenticeship standard
• The FBM applies across instances of the same apprenticeship
• The remaining balance within that cap is known as the value of funding remaining
• The remaining funding limits what can be paid for the rest of the apprenticeship

2. What you need to do

When transferring an apprentice, you must:

• Select a new training provider  
  • Must be approved to deliver the same apprenticeship standard and version
• Share apprentice information 
  • Provide evidence of training already completed 
  • Share progress records or portfolio (where available)
• Review funding already used 
  • Check your Apprenticeship Service account 
  • Understand what has been paid to the previous training provider
• Work with the new training provider 
  • They will assess prior learning 
  • They will confirm what training is still required
• Agree a new price 
  • This must reflect remaining training and assessment only
• Approve the new arrangement 
  • Update and approve details in your Apprenticeship Service account

3. Agreeing the price for the remainder

The new price will be based on:

•  The amount of training still required 
• Any prior learning already completed 

Important 

• If the agreed price is within the remaining funding, it will be funded as normal
• If the price is higher than the remaining funding, the employer must pay the difference directly to the training provider
• This additional payment cannot be made through your Apprenticeship Service account

4. Prior learning and reduced cost

Your new training provider must:

•  Assess your apprentice’s existing knowledge, skills, and behaviours 
• Take account of training already delivered

This will reduce: 

• The length of the programme 
• The amount of training required 
• The remaining balance of funding to be paid

You should support this by helping the apprentice provide all evidence of prior learning.

5. Understanding the funding remaining

You can estimate remaining funding by: 

• Viewing payments in your Apprenticeship Service account 
• Subtracting these from: 
  • the funding band maximum, or 
  • the original agreed price 

This is only an estimate. The new training provider can help you confirm the actual amount based on funding data and prior learning.

6. Key points to remember when transferring apprentices

• Funding does not reset when changing a training provider 
• Total funding across all instances of the same apprenticeship is capped at the funding band maximum 
• You should only pay for remaining training and assessment costs 
• The new training provider must account for prior learning 
• You may need to pay additional costs directly if remaining funding is insufficient

7. Support

Work closely with your new training provider throughout the transfer. They are responsible for confirming the remaining training, duration and agreeing the remaining price in line with funding rules.

Need support?

Please contact the the Apprenticeship Service if you are having issues. 

If you have a specific query about that is not covered by this information or the guidance, please contact us using the Customer Help Portal.