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Depends.
If their initial assessment results suggested they required some additional teaching in order to meet the necessary level then I'd argue you're within your right to keep the funds up to the point the exemption presented itself. If the results suggested otherwise (e.g., the requirement is Level 2 and their IA said they were already working at Level 2), then you couldn't reasonably argue you deserve to keep the funding because it wasn't really warranted in the first place.
We seem to enjoy doing that Steve Hewitt
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Functional Skills Payments
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Hi,
If a learner is registered for functional skills and starts learning with the provider and then finds their certificate to prove prior attainment, do the ESFA payments received up to that point get clawed back/need to be paid back?
Thanks