What employers need to know about new funding rules


So, the big news this month is that the ESFA has just rolled out the latest batch of rules for apprenticeship funding. Here, we delve into what this means for you and how these changes are being put into action for 2023-24.

The new rules build on last year’s changes which add flexibility and continue to encourage collaboration, making sure there’s consistent documentation and dialogue between the employer and provider to ultimately support the apprentices and achieve better learning outcomes.

There are eight key areas to this year’s ESFA funding guidance changes. Here is the breakdown – and remember HIT is right here by your side to provide all the necessary support!

The Employer

  • It does not have to be the apprentice’s line manager that signs their documentation on behalf of the employer. This may help facilitate the apprenticeship sign-up/enrolment process if the manager is not available to sign the learner documentation and the employer is able to provide someone to sign on behalf of the organisation.

Initial Assessment

  • If the employer is unable to attend the initial assessment, the provider must give them the opportunity to contribute and must send them the relevant information after the meeting for review and signature. This gives flexibility if the employer is unable to attend.
  • The initial assessment must include all parties agreeing the recognition of prior learning and how all parties will work together to achieve the apprenticeship.
  • The discussion must also include confirmation of the price of the apprenticeship, so that it is clear to the employer from the outset how much they must contribute.
  • The employer must agree to take part or provide input to progress reviews. The option of providing support has been added to allow for occasions when the employer is unable to attend.

Apprenticeship Agreement

  • The apprenticeship agreement must cover the actual duration. If an apprentice goes past their planned end date, they must have their apprenticeship agreement extended to when they now expect to complete, and this must be signed by the employer and the apprentice.
  • The apprentice cannot sign the apprenticeship agreement as the employer.
  • An incomplete or unsigned apprenticeship agreement is deemed invalid. This will be considered a funding error if found at audit.

Apprentice Wages

  • The employer must pay the apprentice a lawful wage, i.e. at least the legal minimum wage. We must confirm with the employer this is the case, and we do this by having an employer signed training plan.

Duration, Off the Job (OTJ) and the Training Plan

  • Where an apprentice works less than 30 hours per week, you must still extend the planned duration accordingly. However, they can now complete their programme once they have met the minimum duration, provided they have met the minimum off the job hours for their actual duration.
  • You may be familiar with the rule that previously stated that if the actual OTJ training was less than planned, a statement had to be signed by the apprentice and the employer to agree to the difference. Now the statement is only required when the duration is shorter than planned AND hours are less than planned.
  • Some active learning, OTJ or English or maths, must take place every calendar month. Previously it was every four weeks. This applies to all apprentices, irrespective of their start date. This allows flexibility for busy periods for employers, e.g. Christmas where now there can be learning in early December and in mid or late January and it will be compliant. A break in learning must be used where there is no plan for any active learning in a calendar month, except term time only contracts.
  • The training plan must be agreed before any training is delivered. However, if the provider is unable to obtain a signature of the employer by the start date, they can, by exception, accept an email confirmation from the employer on the start date and obtain the employer’s signature within 42 days of starting. But this is an exception and should not be the general policy.

Progress Reviews

  • Progress reviews now must be completed at least four times a year, rather than every 12 weeks as it was in 2022/23. This applies to all apprentices, irrespective of their start date. There is also the option to agree an alternative frequency with the employer, provided there is an evidenced delivery reason for this. Clearly you should not agree an alternative that would be unsuitable for the programme or disadvantage the apprentice.
  • If the employer is unable to attend a progress review, they must be given the opportunity to contribute. They must also be sent relevant information after the meeting, for review and signature. This allows flexibility where the employer is unable to attend, but do not lose sight of needing to obtain the employer’s confirmation that they have been informed of the content of the review.

EPA

  • If an apprentice changes employer, including where the job role is not related to the apprenticeship, they may complete EPA if it can satisfactorily be taken and paid for.
  • An apprentice can change EPAO after EPA has started, if the employer and provider agree to it.
  • Apprenticeship providers will be responsible for choosing the EPAO for an employer unless the employer wishes to continue to select the EPAO themselves.

Subsidy Control

  • For small employers, the waiving of the employer contribution for fully funded apprentices may be considered subsidy. The provider is still expected to ensure the employer completes a subsidy control declaration, and now the provider must supply the employer with a declaration to use.

There you have it, a summary of the key changes to the rules that affect you the employer whether you’re a seasoned pro or just stepping into the world of apprenticeships.

Remember these changes are here to make your role clearer and more effective – and remember HIT is right here beside you, ready to be your partner every step of the way!

If you’re feeling a bit puzzled about how apprenticeships get their funding, take a look at our comprehensive guide ‘Funding to Fire Up Your Business’.


HIT Training Ltd Wins Prestigious Apprenticeship Provider of the Year Award for the Second Consecutive Year

Time to Open up About Mental Health During COVID-19

The Future Hospitality Workforce: What Will it Look Like Following COVID-19?

HIT Training Ltd Receives ‘Good’ Ofsted Rating for 14th Consecutive Year

From First Job to Future Career

HIT Training Recognised at the TES FE Awards 2018

Sodexo partners with HIT to gift £250k of levy to support hospitality apprentices

Update to our company name

HIT Training Ltd Wins Excellence in English and Maths Skills Development at the Apprenticeship and Training Awards

How to Solve Your Staffing Problems with Apprenticeships

Sam Dixon takes the top spot in Young National Chef of the Year

HIT Training Ltd strengthens its board with four new Directors

Chopping Boards to Boardrooms: The Benefits of Apprenticeships at Any Career Stage

HIT produces 1500 free meals on National Hospitality Day

Deliveroo Launches New Chef Apprenticeship Fund to Tackle Skills Shortage

HIT’s exciting brewing competition is back for 2024

Future-Proof Your Business and Save Big: National Insurance Savings for Employers of Apprentices Under 25

HIT partners with Hospitality Jobs UK to form new recruitment partnership

Hospitality Employers Back Shorter Apprenticeships as HIT Launches New Working Group

How the ‘Mini-Budget’ Supports Employers, Training and Skills Development

Vacherin’s Nick Smith Crowned Winner of the Craft Guild of Chefs’ National Chef of the Year

The Benefits of Learning at Work for your Business and Workforce

HIT Training Launches Suite of Training Courses and Workshops to Upskill Hospitality Teams

Hospitality Apprentices Impress at HIT Masterchef Finals

HIT Training Ltd Embarks on the Journey to Net Zero with Planet Mark Certification

Championing Change in Functional Skills

How to Offer a Degree Apprenticeship for Employers

HIT Training Features for Fourth Time in The Sunday Times’ Top 100 Best Companies to Work for’

How to Manage Stress: Stress Awareness Month 2021

All Change – It’s Time to Reserve Your Apprenticeship Funding!

Untapped competition: Meet the 2024 Rising Stars of Brewing

Culture of Craft – The Rise of the Craft Apprenticeship

Center Parcs Celebrates Apprentice Trailblazers

Grow your team with retail apprenticeships

HIT Training Ltd moves to employee ownership

The Apprenticeship Levy One Year on

John Hyde Scoops Special Recognition Award

Apprentice Drew Dawson Crowned Winner of Toque D’or® 2019

New Principal appointed to HIT Chef Academy

Leading the Way: Long Awaited Production Chef Apprenticeship is Launched

Mental Health Awareness Week – Dealing with Anxiety

The Opportunity Provider and Scrumptious Marketing Announce Strategic Employer Branding Partnership

We’re Unmasking Talent in the Hospitality Industry with the Launch of the HIT Heroes Awards

Hospitality Apprenticeships Week 2021 to Showcase Industry as #Morethanajob

We Are Now a Planet Mark Certified Business

HIT Training Ltd. Publishes White Paper on Apprenticeship Reforms and Workforce Development

Medals All Round for our Fired Up Four!

The Importance of a Mentor for Apprentices

HIT Heroes Award Winners Announced for 2021

Flavour of Success at The Restaurant Show

Boost Your Mental Health Through Small Acts of Kindness

HIT Training and The Clink Charity announce new partnership to launch apprenticeships for serving prisoners

Developing an Apprenticeship Strategy

Helping Young People Into Work: every employer can do one thing

HIT Training Ltd announces new Managing Director Mike Worley

Jill makes Public Sector Catering’s ‘Most Influential’ list

Gravetye Manor chef takes the top spot in Young National Chef of the Year

Two HIT Apprentices Make MasterChef Finals

HIT Heroes Award Winners 2023

Functional Skills: The Cornerstone of Apprenticeships

Access Global Opportunities for Your Apprentices

Flexi-apprenticeships are the Answer to the Dwindling Hospitality Workforce

HIT Training Elevates Commitment to Diversity and Inclusion by Becoming Patrons of the Multicultural Apprenticeship Alliance

Employee-owned training group signals long-term commitment to UK skills with new name

Harness the Power of Plant Based: One Bite at a Time

Supporting Employers During the Economic Recovery

HIT Training Offers Chartered Management Degree Apprenticeship to Drive Business Improvement

HIT Training Receives Matrix Accreditation

Free online assessment to help employers shape their workforce

Educate Your Team on the Mental Health Benefits of Food

Government announces major youth employment drive and apprenticeship reforms

Jill Whittaker Takes Top Honour at the 2024 Multicultural Apprenticeship Awards

HIT Training and BII Collaborate on a Series of Ready to Reopen Webinars

National Inclusion Week 2024: Why Impact Matters in Apprenticeships

Alex Angelogiannis wows judges to take top spot in National Chef of the Year competition

Three Ways to Keep your Staff Motivated and Inspired During Lockdown 3.0

New movement to tackle gender inequality in the kitchen

Institute of Hospitality and HIT Training Invest in the Industry’s Future

HIT Training Launches Free Workshops to Help Close the Chef Skills Gap in the Capital

HIT Training Wins Award for Championing Social Mobility Through Apprenticeships

Making 2022 The ‘Year of Retention’

Three Signs your Employees are Reaching Burnout – and How to Support Them

Rising stars named in prestigious Young National Chef of the Year semi-final line-up

HIT Training LTD Receives Royal Recognition for Outstanding Training Impact

The Young National Chef of the Year Finalists Have Been Revealed

HIT Training Ltd Signs New Business Drive to Help The Nation Through COVID-19 Crisis

Apprentices Make History After Completing the UK’s First Ever Brewer Apprenticeship

It’s ‘Time to Talk’

An Industry Collaboration

How to Inspire Young People to Choose a Career in Hospitality

Introducing the Executive Development Network (EDN)

Creating a Learn-it-All Culture

The Power of Adding Plant-Based to your Menu

New National Chef of the Year is unveiled in front of industry elite

HIT Heroes Apprentice and Employer of The Year 2020 Announced

Protecting the Future of the Sector: Hospitality Businesses Pledge to Fund Apprenticeships Outside Their Organisation

Untapped – HIT Training’s Brewer Apprentice Competition

Working together with the New Government

The Newt in Somerset Unveils ‘Elevate’ – A Bespoke Hospitality Academy in partnership with HIT Training

HIT Launches New Fish Friers Apprenticeship

Sign up to news, events and great resources