SFA will reserve right to step into apprenticeship contracts

Skills Funding Agency

New details have emerged this week about how the Skills Funding Agency will administer payment arrangements between employers and training providers, and it seems that the SFA will exercise its right to step in should training cotnracts not reach the required standard.

A draft document on the administration of the Apprenticeship Levy was published this week, and shows that “The SFA reserves the right to recover from the employer any funding paid to a training provider from the employer’s digital account, where the payment of funding or any arrangement between the employer and the training provider does not comply with the funding rules.

“The SFA will act reasonably and proportionately in exercising its discretion to recover any sum from the Employer under this clause.”


‘Government money with government requirements’

Association of Employment and Learning Providers boss Mark Dawe described the contract as in need of a close read. “While the overarching principles of the levy and delivering apprenticeships are relatively straightforward, the contractual relationship between the SFA, employer, provider and learner is significant.

“This guidance makes clear that the funding is government money with government requirements.

“We are working with AELP member providers to support them in understanding the key elements and also helping our members support and explain to the employers that they are delivering training to.

“As we have previously said, the separate contract between the employer and the provider is equally important and we have already invested in making sure all parties understand their obligations.”