Anneliese Mason

TNP3/4 and the Apps Indicative Report

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I have come across a few of our Apprentices who have changed employer during their programme and I have set the required TNP 3/4 values to indicate the funding amount for that employer. 

Looking at the Apps Indicative Funding (and the payment report), it has recalculated the funding to the residual amount and the achievement funding accordingly, so a £400 expected achievement payment is now only £246.  

Has anyone else come across this?  As far as I can see, I have entered everything as expected on the ILR, but may be I have missed something critical?

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Martin West

Yes that is correct and the same as a change in price in the Technical guidance.

  1. For changes in total price, we will apply the new price from the 'Apprenticeship financial record date'. After applying the funding band maximum, we will subtract any earnings to date and 20% of the new total price for completion. We will spread the remainder equally over the remaining planned duration.

HTH

Anneliese Mason

But it isn't a change in price though - it is a split of the price between employers?  Surely the overall funding value shouldn't change, some of our student have changed employers more than once....

 

Martin West

  1. If the apprentice changes employer, the provider and new employer should agree a price for the remaining training and assessment, we call this a ‘residual’ price. You should record this residual price in the ILR using the 'Apprenticeship Financial Record' entity in ILR returns. You record a residual training price as TNP 3 and a residual end point assessment price as TNP 4. These identify the price of the remaining training and/or assessment (including end-point assessment for apprenticeship standards) to be delivered following this change in circumstance to an ongoing programme. We will use this price information to calculate the earnings for the remainder of the programme and match to the new employer's account if they have one.

Scenario E - The apprentice moves to a new employer but remains on-programme with the same provider

  1. The employer and provider will negotiate a new total price for the programme. You should record this price in the ILR as a residual price. We will use this to calculate the earnings for the remainder of the programme and match to the second employer's account if they have one. The provider will not create a new programme aim record if the apprenticeship delivery continues without a break.
  2. We will account for the earnings from the period with the first employer before we apply the funding band maximum to calculate the earnings for the period with the second employer. The total earnings paid to the provider from employer accounts and total earnings before co-investment is calculated will not be more than the funding band maximum for a single apprenticeship.
  3. The provider will continue to receive additional payments. Any remaining additional payments not paid to the original employer you can pay to the new employer. We add the number of days in learning during the first period of learning to the days in the second period, and subsequent periods, to calculate if we will generate any remaining additional payments.
  4. If the apprenticeship is funded through co-investment, we will use the co-investment percentage that applied when the apprentice originally started with the first employer on that apprenticeship.

HTH

(Edited)

Joanne Sage

Hi, I've had that previously and it re-calculates your OPPs and completion payments.

Example, if the original price was £10,000, so £8,000 for OPPs and £2,000 completion on a 20 month programme (£400 OPP), it gets recalculated as follows:

Assume 10 months left on programme and £6,000 residual price.  It will take 20% off the £6k, so £1,200 completion payment and £480 OPP.

You will need to check that overall you have received the full amount, taking into account the different completion payment to what was originally expected.

 

 

Ruth Canham-James

It seems like an odd way to do it, as you can really reduce your completion element if a student changes employer really close to their Planned End Date. If they then don't complete the EPA, you don't lose as much funding.

Anneliese Mason

Thank you all.  They do all add up to amount the the correct level of funding...but boy, how complicated.