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I can't remember where I found the ruling for this as I experienced it as well. As I understand it the apprentice remains on the funding terms that were in place when they signed up. I'm pretty sure I had to get this confirmed by the help desk and shared that with the employer at the time.
I think this is now in P184 of the new rules, which suggests if they become levy payers then those funds will be used to pay the monthly installments. Is it possible the reports are showing co-investment because despite now being levy payers they still have insufficient funds?
Employers also don't automatically get a levy account because they've started paying the tax, they have to explicitly request the account change. I think we had one like this, and as far as I can remember, we didn't start getting levy funding until they converted their account. They then still owed us co-investment for the period before they got the account converted, which they weren't happy about, as they'd been paying the tax since before the apprentice started and did have enough money to pay in full. It didn't get back dated.
Vicky
Employer starts paying levy mid-way through programme
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Hi, We have a learner who is on a long apprenticeship, and started in 2022. The employer was non-levy, but is now levy. They are stating that they should no longer pay the co-investment as they are levy payers. They have notified AS, but the reports are still showing they are due to pay co-investment. Please can someone point me to the guidance around this, I can't see it in the funding rules or technical guidance, unless I've missed it. Thanks