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I have never heard of the DfE refunding an employer. Are they non-levy since they're supposed to pay co-investment, or was it levy with insufficient funds?
Why would they even be due a refund? If an employer owed you £1,000 co-investment for the entire duration, then the apprentice transferred to another employer/provider halfway through, they'd only have to pay you the £400 for the months actually completed with that employer/provider combo. If they'd already paid the provider £1,000 up front, the provider would refund £600. If they'd only paid £200 already, we'd chase up the remaining £200. They do have to pay the co-investment for the completed months, but not more than that, and providers are required to provide refunds. That's in the rules (25/26 version below):

Just edited the first line of my response because I meant DfE don't refund the employer.
I'd treat it the same way as if they moved to another provider 😊 Even if the employer were paying for the non-apps course, you still need to show you did the appropriate refund, even if you then invoice them again for the non-apps one.
I'm interested in how anyone came to the conclusion that the employer has to pay the provider in full regardless, and DfE will refund them for any study not done. DfE would then have to ask the provider for the money. We don't get to keep co-investment for delivery we didn't do.
Sarah Stephens-Lewis
Co-investment rebate
Created
Hi all, We have an employer that is refusing to pay their co-investment as their learner has transferred out of an apprenticeship. We have been informed that the employer is required to pay us as is then refunded by the DfE. Is that correct or does the TP refund the employer?
Thanks!