Understanding employer additional payments when impacted by provider termination

Overview

This article offers information for employers to help them understand employer additional payments when they have been impacted by the termination of a training provider’s funding agreement. 

The training provider claims the additional payments from DfE on behalf of eligible employers. DfE then transfers the employer additional payment to the training provider. The training provider is required to pass the payment on, in full, to the employer within 30 working days of receiving the funding from DfE.

Contents

1. Additional payments for hiring a young apprentice
2. Additional payments in the context of provider termination
3. Recovering an additional payment you believe is owed to you

1. Additional payments for hiring a young apprentice

For more information regarding additional payments with different criteria see Apprenticeship Hiring Payment for Non-levy Employers. – Apprenticeship Service Support 

2. Additional payments in the context of provider termination

Your eligibility for additional payments remains unchanged if your current training provider's funding agreements are terminated and your apprentice transfers to a new training provider. 

Additional payments are earned by the training provider that is delivering the apprenticeship at the relevant payment point. If any additional payments had not yet been earned by your previous training provider, the new training provider may claim and earn those payments once the apprentice has transferred and continues their learning.

3. Recovering an additional payment you believe is owed to you

The following guidance applies if your previous training provider is still trading:

• If you think you should have received an additional payment from your previous training provider, and the payment was earned and paid to your previous training provider before their funding agreements were terminated, the previous training provider remains responsible for passing the payment on to you in full. In these circumstances, you should contact your previous training provider directly to recover the payment

The following guidance applies if your previous training provider is no longer trading:

• If additional payments were earned and paid to your previous training provider before their funding agreements ended, and the training provider has since ceased trading or entered insolvency, you should contact the training provider’s legally appointed representative (insolvency practitioner) to request the payment
• You can search for your previous training provider on the Gazette (Official Public Record) website to identify the legally appointed representative and their contact details.
• If an additional payment was earned but was not paid to your previous training provider before they ceased trading or entered insolvency, the DfE will not pay the additional payment to the previous training provider
• If your apprentice transfers to a new training provider, that training provider may, with DfE approval, claim and earn the additional payment on your behalf
• If your apprentice does not transfer to a new training provider, the DfE may arrange to pay the additional payment directly to you, provided the payment was generated and earned by your previous training provider

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.