Ray Davies

Costs to New Employers

Created

None

If an apprentice moves from a levy paying employer to an SME a month before the practical end date do you put the full cost of the 20% completion payment to the new employer, along with the residual 1 months worth of training ?. Also is it mandatory to have an invoice for 5% co funding ?

We have a number of CoE's in progress and it seems unfair that SME's "doing a kid a favour so he can complete" are being hit by a cost that is a minimum of 5% of the 20% completion. Carpentry L2 is £11,000 so 20% is £2,200 so you have to charge £110 plus however many months left of training ? 

Thanks in advance

 

Replies

No one has replied to this post.


Martin West

No, the costs to the new employer are based on the residual training and EPA costs only, the original 20% completion payment does not come into the calculation but is recalculated from the total negotiated costs for the new employer.

If the new employer is a non-levy payer they will be required to co-invest unless they are an SEM (Small Employer-To identify whether the employer recorded in the Employer identifier field is a small employer as defined in the funding rules) where this is waived.

HTH

Ray Davies

Is the EPA cost is proportioned as well or is it passed onto the new employer in full ?

Thanks

 

(Edited)

Martin West

The EPA cost recorded on the ILR are what the EPA costs are for the new employer as they may have selected a different EPAO with a different price.