Co-investment waiver - employer changes

I wondered about that, but I don't think so. I raised it at the bottom of this post.

We think it just means that the new "16-21 with a non-levy employer" waiver doesn't apply, but of course it doesn't if they started before 1st April 2024, that shouldn't need "clarifying". I believe the original "16-18 small employer" waiver would still apply. The 24/25 rules just completely ignore the old 16-18 small waiver, which is clearly still in place for many continuing apprentices and will apply for changes of employer.

Thanks, that makes it clearer - it's just unfortunate the 'clarification' in the guidance is so confusing!

Hi Ruth, I hope you are right, but I read it that the employer will be liable for co-investment. I flagged this, and was pointed to this part of the technical funding guidance: 

Where an apprentice changes employer (after 1 April 2024), and remains on the same apprenticeship, then the following will apply if the original start date is: 

a) prior to 1 April 2024, then the co-investment waiver will not apply to the new employer (the new employer will be required to pay co-investment)

b) on or after 1 April 2024, then the non-levy status of the new employer (when the apprentice begins their new employment), and the age of the apprentice when they started their apprenticeship (with the original employer) will determine whether we waive co-investment

We have one who started pre-April 2024, who has recently changed employer, and despite being young, is showing on the co-investment report. 

Thank for the update Veronica Smith

That is completely outrageous! An apprentice that didn't require co-funding when they started, and wouldn't require co-funding if they started now, now requires co-investment just because a quirk of changing employer?! That needs raising with ESFA as a massive oversight and injustice. Why should the employer be penalised for taking on an apprentice who by all rights shouldn't require co-investment, just because ESFA didn't think of that scenario?

Has anyone received any update on this?  Surely this is not intentional?

I asked the helpdesk about this earlier this week and got this reply:

"I understand your query is in relation to the new funding rules - in particular rule 161:
 
161. Where there is a change of employer, and the apprenticeship originally started prior to 1 April 2024, then the co-investment waiver will not apply to the new employer regardless of the apprentice’s age at the time (this also covers where an apprenticeship re-starts).
 
Where an apprentice changes employer (after 1 April 2024), and remains on the same apprenticeship - if the original start date is prior to 1 April 2024, then the co-investment waiver will not apply to the new employer (the new employer will be required to pay co-investment). This is regardless of the Apprentice's age in question."

So it appears we should be charging co-investment - however it doesn't seem very fair to charge this to a new employer who is giving an apprentice the opportunity to continue their apprenticeship when not charged to the original employer. I made this point to the helpdesk and they've referred back to the policy team for further comment so I'm waiting to hear further. It's also unclear when this is effective from, the helpdesk said 1st April 2024 but doesn't seem reasonable when this has only appeared in the rules update in February 2025?

Hi

Also slightly worried about this as we have a lot of employer changes and I have not followed their guidance in terms of co-investment and employers will not be happy if we now go back to them and tell them it's going to cost them :-( 

Have there been any updates at all to their guidance?

Thanks
Kate

Everything I'd heard, they've just doubled down on it. I can't understand why they introduced this, it's totally unfair and doesn't really benefit the DfE significantly. It would be interesting to ask an employer in this situation to put in a formal complaint directly to the DfE.