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Neil Briggs

Coinvestment Contributions 5% of what?

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Hi all,

I've just sent this to the servicedesk for some guidance but thought I'd also post it here in the hope of a swifter, possibly more accurate answer?

I am in need of some clarification on the data in the Period End Coinvestment Contributions Report please.
 
Are you able to confirm please how the monthly instalment for the 5% coinvestment contribution is calculated?  We were always under the impression it is 5% of the TOTAL negotiated price (i.e. the total of the TNP1 and TNP2).  However, the figures on this report indicate that it is only 5% of the training price (the TNP1 only).
 
For example, we have a learner on our current report with a total negotiated price of £22000 - 5% of which is £1100.  They are on a 24 month apprenticeship, giving a total of £45.83 per month.  On the coinvestment contributions report the monthly amount is showing as £36.66 - a total of £880, which is 5% of the TNP1 value (£17600).
 
When checking that we have collected enough coinvestment from an SME, we double check against this report to ensure that we have collected enough.  However, this may mean that we are not collecting 100%, as we would only be collecting 5% of the TNP1 value.  We need some clarification on whether this report is accurate or not as it could lead to us not collecting enough, and missing out on completion payments.
 
Further to this, for levy employers where they've gone over the levy pot and we need to invoice them for the balance, are these amounts correct on the report?
 
Thanks all :)
 
Neil

Replies

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Martin West

Payments are split between the monthly payments and the completion element 80%/20% and not by TNP amounts for your apprentice the £22000 is split £1760 over 24 months £733.33 per month – 5% co-investment= Levy payment of £696.66 with a co-investment of £36.66.

HTH

Chloe Hemmingsley

The contribution is 5% of the monthly on programme payment e.g Total negotiated price * 80% / number of installments and then the final 20% on completion.

This example would be correct as your monthly OPP is  £22,000 x 80% = £17,600/24 = £733.33 (monthly OPP) x 5% = £36.67

At completion it will be 5% of the remaining 20% completion payment

Neil Briggs

Many thanks both, this now makes a lot more sense.  I think I bit of internal process change is required our end so we'll work on that.

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