FAQ: Employer Provision - Large employer reduction in rates for 19+ learners

1. What is happening to funding for large employers in Apprenticeships and workplace learning?

2. How is this being done?

3. Why is an employer on the list?

4. Who is not on the list?

5. What happens if there has been a mistake?

6. Is there a copy of the list I can see?

7. Why are there no names on the list only Employer Numbers?

8. Are there special instructions for NES employers?

9. Can I use the same rules as NES employers?

10. Will it be audited?

11. Will the list be updated?

12. I know that the employer has more than 1000 employees but is not on the list?

13. I contract with NES but the large employer factor is not being applied. What should I do?

14. What ERNs should I use if I work with the MOD?

15. What should I do if I work with the MOD but not with the Armed Services?

16. What do I do if the learner moves company during their training?

17. Is all NES provision subject to the Large Employer rate?

18. What if I work with a franchise and I do not contract with NES

Question 1. What is happening to funding for large employers in Apprenticeships and workplace learning?

Answer: All learners, aged 19 or older when they first start an Apprenticeship or a workplace learning aim, a reduction of 25% will be applied to the rate that they are funded. This up-front reduction in both the installment and achievement payments will be applied as part of the funding calculation in reducing all payments made to providers and employers who are funded by the Skills Funding Agency. This will be applied to both new learners in 2011/12 and existing learners continuing learning from a previous year.

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Question 2. How is this being done?

Answer: The Skills Funding Agency will be using ILR field Employer Identifier (EmpId) to identify employers through their Employer Number. A list of the affected employers has been created and will be used in conjunction with ILR data and the funding calculation. 

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Question 3. Why is an employer on the list?

Answer: An employer is listed where their Company’s House record states that they, their subsidiary or their parent company have cumulatively more than 1000 employees. For the Public Sector all government departments, local authorities and NHS hospitals and trusts have also been included.

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Question 4. Who is not on the list?

Answer: Registered charities, schools, colleges, nurseries, universities and employers with less than 1000 employees cumulatively in associated subsidiaries and parent companies are not included in the list.

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Question 5. What happens if there has been a mistake?

Answer: Details of companies and organisations on the list which are reported to the Data Service as mistakes will be logged. These companies will be investigated and may be removed from the list subject to confirmation and approval from the Skills Funding Agency. No additional names will be added to the list within the year. Any additional names of companies and organisations will be logged. Investigations will be made and if confirmed they may be added to the following year’s list.

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Question 6. Is there a copy of the list I can see?

Answer: A data file containing the Employer Numbers affected is available - 2011/12 Large Employer List - click here to download (Zip File 983 KB)

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Question 7. Why are there no names on the list only Employer Numbers?

Answer: We are not allowed under the commercial arrangements we have with our list provider to publish names. Employer Numbers can be searched using the EDS.

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Question 8. Are there special instructions for NES employers?

Answer: NES employers will use a single Employer Number for the whole of an employer’s provision.

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Question 9. Can I use the same rules as NES employers?

Answer: No, unless they are part of the armed forces or instructed to do so. None NES providers must use the Employer Number associated with each workplace. Where the provider works with the Army, Navy and Royal Air Force a single Employer Number must be used.

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Question 10. Will it be audited?

Answer: Employer Numbers will be audited in the same manner as all ILR data concerned with funding.

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Question 11. Will the list be updated?

Answer: Apart from the circumstances described in question 5 the list will remain static for the whole of 2011/12. New workplace Employer Numbers will not be added to the list until 2012/13.

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Question 12. I know that the employer has more than 1000 employees but is not on the list?

Answer: The list was created from EDS in May 2011. This means that employer locations added after that date will not have been captured. Providers should ensure that they are using the correct location and that there is not a duplicate record in EDS that they should be using.

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Question 13. I contract with NES but the large employer factor is not being applied. What should I do?

Answer: Contact your Account Manager as you may be using the wrong ERN.

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Question 14. What ERNs should I use if I work with the MOD?

Answer:

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Question 15: What should I do if I work with the MOD but not with the Armed Services?

Answer: For non-armed service personnel you should use a normal ERN based on location. This includes civilian staff and other employees working on MOD bases.

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Question 16. What do I do if the learner moves company during their training?

Answer: ILR field Employer Identifier (EmpId) should not be updated during a learning aim.

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Question 17. Is all NES provision subject to the Large Employer rate?

Answer: Yes. All provision contracted through NES is subject to the Large Employer rate. This includes organisations that are franchisees.

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Question 18. What if I work with a franchise and I do not contract with NES

Answer: In respect to a franchisee it is important that the correct information is put into ILR field A44. For example, the owner of the franchise should be used as the identifier and not the name of the franchise, for example 123 Food Limited trading as World Fast Food rather than World Fast Food Inc. This ensures that smaller local and regional franchise holders are not part of the reduction in funding. This does not apply to NES provision.

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