Changes to funding rules - 1st April 2024

In a press release on the 18th March the UK Government announced apprenticeships for those aged 16-21, In non-levy paying employers, would be fully funded. As part of the announced changes for the 24/25 academic year, the funding rule requirements for co-investment of Apprenticeships have changed with effect for 01/04/24.

 Bud has updated the logic used in the enrolment process to take into account the changes published in the draft funding rules, specifically regarding exemptions to the employer co-investment requirement detailed below:


141. Employers who do not pay the apprenticeship levy, and levy paying employers with insufficient funds, must co-invest the relevant amount of the total negotiated price, up to the funding band maximum, towards the cost of the apprenticeship training and assessment.

142. The exemptions below apply to paragraph 141. In the circumstances below, the government will fund all of the apprenticeship training and assessment costs, up to the funding band maximum of the apprenticeship: 

142.1. Employers who do not pay the levy, if at the start of their apprenticeship training the apprentice is aged between 16 and 21 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August). 


142.2. Employers who do not pay the levy and have fewer than 50 employees, if at the start of their apprenticeship training the apprentice is aged between 22 and 24 years old and has either an Education, Health and Care (EHC) plan provided by local authority and/or has been in the care of their local authority (see paragraph 98.2).


In implementing the funding rule logic, a “levy-paying employer” status will be determined by the selection made in the “How is this apprenticeship going to be funded” dropdown options list within the additional Employment details section of an Apprenticeship enrolment. The determinations are shown below:

We will also take into account the following factors in determining if co-investment is required:

  • The age of the learner on the learning start date
  • The learning start date
    • This revised logic will only apply to learners with a start date on or after 01/04/24.
    • Learning start dates before 01/04/24 will continue to use the previous logic.
  • Where learners are aged 22-24 on the learning start date we will also use the answer to the following enrolment question to determine eligibility for co-investment relaxation:
    • Employer’s average number of employees in the last year
    • Does the learner have an Education Health Care Plan?
    • Has the applicant been looked after by a UK Local Authority/Health and Social Care Trust for at 13 weeks since they were 14

Where the above logic determines a learner is eligible for relaxation of the employer co-investment the funding document will display this as a £0.00 contribution required in the funding outcome section.

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NB: the highlighted logic regarding the additional £1000 payment towards the additional costs associated with training for an Apprenticeship remains unchanged in the 24/25 draft funding rules and is still applicable to 16-18 year old learners (Or 19-24 if the Learner has an EHCP or has previously been in care). Bud will continue to monitor the funding rules for any changes to this logic.

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