Aishe Rexhepi

Incentive payment

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Good afternoon,

Hope you all are well.

Could you please help me with a question below: I believe that the incentive payment was paid straight to the employers' account has this changed?

Kind regards

A

Replies

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Jean Parry

It is currently paid to the Training Provider.  You then have to pass it on to the employer.

There are plans to pay direct to the employer but there is no definite date when this will be coming in as yet 

Martin West

The Incentive payment for hiring a new apprentice is paid direct to the employer as it is claimed by them in DAS but the 16-18 incentive is paid by the provider to the employer when payment is received from the ESFA.

HTH

Ruth Canham-James

I don't really understand why this isn't explicit in the main Apps funding rules, but it's here;

https://www.gov.uk/government/publications/apprenticeship-funding

In the document called "Apprenticeship funding in England (from June 2022)".

  1. When employers take on a 16-18-year-old on an apprenticeship, they receive £1,000 to help meet the extra costs associated with this. This will be paid to employers in two equal instalments, at 90 days and 365 days. These payments are made to employers via their training provider, who will pass the money on. These payments come direct from the government and will not be deducted from an employer’s apprenticeship service account. Employers who benefit from the small employer co-investment waiver will also receive these payments.

The bit in the main rules is P116 and P117.

I'm not sure they'll ever move to sending this straight to employers. We have such issues trying to to get bank details from some of them, do ESFA want to take that on? Maybe ESFA wouldn't worry so much, and would just give the employers two chances then give up. We're not allowed to do that. Also, when through some genuine admin error, they need to claw that payment back off the employer, they're not going to want to deal with that.

Aishe Rexhepi

Hi,

Thank you for your prompt response.

Best wishes

A