Becky Ward

Completion payment for apprentice who changed employer


We have an apprentice who has changed employer. The old employer was a levy payer but was paying co-investment due to insufficient levy funds.

We have renegotiated the TNP for the new employer (also a levy payer), so they are paying a lower amount. How do we work out the completion payment that the new employer will pay? I'm not sure if I'm over-complicating it!



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Ruth Canham-James

I just had to check this on our payments report for one of ours that changed employer, as I wasn't actually sure! The new residual training price gets split 80/20, the 80% on programme payments split between the months between the new employer start date and the planned end date, and 20% as the completion element. That means the monthly payments from the new employer will be higher than from the previous employer, but the completion payment will be lower.

As an example:

Employer A - Price £26k, duration 36 months. OPP £20,800/36 = £577.78 a month. Completion = £5,200.

Changes employer after 16 months. Residual price is remaining funding in band rounded down to nearest £10.

Employer B - Residual Price £16,750, duration 20 months. OPP £13,400/20 = £670 a month. Completion = £3,350.