How the new apprenticeship Funding Rules will impact providers

The 2024/25 Funding Rules bring a new set of changes that apprenticeship training providers will need to understand and navigate from 1st August 2024.

How the new apprenticeship Funding Rules will impact providers 

Rupert Crossland, Director of Audit and Compliance at Professional Assessment, joined Bud Senior Product Owner Matt Wood to dig into the most important changes in a recent webinar. Here’s a breakdown of the new rules and what they mean for training providers. 

For more expert insight, you can watch our webinar on demand.

Functional skills

Functional skills is the area which saw the biggest change in this update. The changes enable greater flexibility in English and maths delivery, giving scope for more personalised teaching.

Functional Skills Level 2 requirement

The requirement that learners complete Functional Skills Level 2 once they achieve Level 1 if there is a minimum of three months remaining of their apprenticeship programme is scrapped. 

It will now be up to the provider and apprentice to decide whether there is enough time for the apprentice to make “reasonable progress” on the Level 2 qualification.

Providers must justify the decision with evidence and record it in the training plan in order to be compliant, but this change represents a huge step away from arbitrary targets and towards realistic expectations for learners.

Be aware that if a learner fails their Functional Skills exams before progressing to the next level of apprenticeship, providers can only claim Functional Skills funding as part of the new programme if new learning is provided. If the learner is simply retaking their exam, new funding cannot be claimed.

GCSE grades now equivalent to Functional Skills

From August, GCSE grades 3 to 1 (D to G) will be equivalent to Functional Skills Level 1. The change will open up accessibility for learners already on programme as well as new starters, and permit more people to join apprenticeships who would previously have been excluded.

Learning support

More big news came in the form of changes to assessments for reasonable adjustments. These can now take place (and funding can be obtained) at any point during the apprenticeship programme.

This is a significant step forward for inclusion, as apprentices living with disabilities or neurodivergent conditions can access the necessary support to level the playing field.

Providers may now also conduct learning support reviews with learners every three months at a minimum – but the requirement to provide evidence of reasonable adjustments every month to qualify for funding remains intact.

Off-the-job training

The requirement for active learning to take place every month for front-loaded or block-release training models has been removed, instead stipulating that active learning must take place every three months. Monthly active learning remains in place for regular delivery models. 

A learner’s training plan must describe the delivery model being used, so that auditors can confirm the active learning delivery has matched that model.

We are pleased to announce that Bud’s next release will enable users to add the delivery model against programmes in the platform, and this change will reflect on the training plan document. Book a discovery call with Bud to learn more about our intuitive training delivery platform.

End-point assessments (EPAs)

If an apprentice changes employer in the time between completing their programme and their EPA, they may complete their EPA with the new employer. This prevents unnecessary delays to the learner’s completion, and makes sure that providers receive their completion payments at the expected time.

Funding

In another move towards improving accessibility, apprentices aged 22-24 can now be fully funded for non-levy-paying employers if they have an EHCP, or have been in local authority care. This will also be financially beneficial for employers, and providers have an opportunity to highlight the change in marketing materials to boost numbers.

Other changes

Other amendments to the funding rules include:

• If apprentices want to take a break in learning, the last date of evidenced learning activity prior to the break must be used as the learning end date. Similarly, their return date should be when learning recommenced.
• Employers are no longer required to sign apprentices’ progress reviews, but it must still be shared with them. It’s still good practice to obtain these signatures and employer comments in order to keep employers engaged though.
• Training providers may now use subcontractors providing under £100,000 of training without them needing to be on the APAR list.
• Costs for non-mandatory qualifications such as resits, and costs for assessing overseas qualifications, are now ineligible costs.
• Providers may now complete their own assessments to determine whether or not a learner can achieve a higher level of Functional Skills than Entry Level 3.

The future for apprenticeship funding

It’s clear that whilst there will always be rules to ensure government funding is used for its intended purpose, these updated rules represent a shift towards flexibility for providers.

With the new government in place, there’s reason to be hopeful that providers’ needs will continue to shape policy in the coming years. The government’s proposed national body, Skills England, will aim to bring together businesses, training providers and unions to ensure policies accurately reflect skills shortages and the needs of the labour market.

Drive compliance with Bud

Bud supports independent training providers, universities, colleges and employers across the country. Our intuitive platform is designed to help improve learner outcomes and deliver high-quality, regulated training at scale. 

If you’re interested in how Bud can help you to stay on top of reporting and drive continued compliance, book a discovery call.