Dan Hodgetts

EPAO Price Increase

Created

Hi

Can someone advise what we should consider the Evidence Pack and in the ILR when an EPAO increases their fees for live apprentices?

What is the impact on TNP1 and 5% contribution if the increase means that the TNP1 needs to be reduced to ensure the overall TNP doesn't go over the max funding value?

 

Thanks

Dan

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Ruth Canham-James

Since we're no longer allowed to report total TNP above band max, if your original total was at band max, you're forced to reduce TNP1 to account for the increase in TNP2.

The employer only needs to pay 5% of the total price, or 5% of the band max, whichever is lower. Anything you charge above band max is already the employer paying in cash, they don't have to pay an extra 5% on that.

So if you total price was band max anyway, no need for extra employer contribution. In theory, if you've decided not to reduce your training price to the employer in reality (regardless of what TNP 1 says), you'd be expected to collect the difference in cash, but you don't record that as PMR. That would be a private arrangement between you and the employer.

If your original total price was below band max, and you're choosing not to reduce your TNP1, the 5% contribution will necessarily go up because the total has gone up.

I find the splitting of Training and Assessment like this to be really confusing and complicated. It would be so much easier if we just had one total.