Employer Guidance for 2016 GAP Grant (For use in relation to apprentices starting from 1st January 2016) Background to the GAP Grant The Grant for Apprentices (GAP) initiative supports employers in South Yorkshire who recruit young people aged 16 to 24 to apprenticeship roles. It is designed to assist employers who are committed to recruiting a new apprentice from the point of enrolment with a training organisation. Employers in South Yorkshire with 100 or fewer employees can apply for a GAP Grant, provided that their apprentice is following a recognised apprenticeship framework (excluding the new Trailblazer apprenticeships) and all other eligibility criteria are met. Grants are financially weighted, with added value placed on those sectors of the economy and associated qualifications identified as having the greatest economic benefits to the region. The details of these weightings are outlined in this guidance document. The GAP Grant is offered on behalf of the Sheffield City Region Local Enterprise Partnership (LEP) by the Sheffield City Region Combined Authority and administered through Sheffield City Council. Please note, the eligibility criteria and payment processes laid out in this guidance may be altered at any time by the Sheffield City Region Local Enterprise Partnership (LEP). Training providers and employers will be informed of any alteration which affects their application. Funds for the administration of this GAP Grant are finite and will be distributed according to apprentice enrolment date, completion of all required paperwork (Application Form, Trade Supplier Request Form and Confirmation of Employment Form) and verification with Skills Funding Agency (SFA) data. Employer Eligibility & Commitment In order to qualify for a GAP Grant, the following criteria must be met: The apprentice s workplace is located in South Yorkshire. The apprentice is a new employee recruited to an apprentice role (they must not have started in employment more than 10 months before the commencement of their apprenticeship course). The employer has 100 or fewer employees in total across all worksites. The employer commits to paying the apprentice at least the National Minimum Wage appropriate for an apprentice of their age, including time for off-the-job training. The employer has received no more than 4 GAP Grants under the devolved funding arrangements. The employer has completed the GAP Grant Application Form, which includes the State Aid declaration, confirming they are aware of and are not breaching any State Aid rules. The GAP Grant Guidance 2016 MT Page 1 of 7
form can only be submitted once the apprentice has been enrolled by their chosen training organisation. The apprentice is enrolled on an approved apprenticeship framework and details from their Individual Learner Record (ILR) have been uploaded onto the Skills Funding Agency systems by their training provide. Exceptions: The apprentice will be employed for at least the time it takes to complete their apprenticeship programme, or a minimum of 12 months on the apprenticeship programme, whichever is greater (subject to satisfactory performance of the apprentice as an employee). If the apprentice leaves or is dismissed and does not complete 13 weeks in learning (as recorded in the Individual Learning Record submitted by the training organisation to the Skills Funding Agency) the employer will not be eligible for the grant. The employer must not previously have received a GAP Grant at a lower level for the same apprentice (with the exception of an apprentice moving up from L3 to L4 in this scenario a 450 progression payment may apply. Where apprentices upgrade from a part-time employed role (e.g. weekend job) to a fulltime apprentice (30+ hours) on a registered framework, they may be considered a new employee for the purposes of the GAP Grant. An apprentice moving up a level, or switching frameworks, will not be considered a new employee for GAP purposes. Unless apprenticeship funding has already been accessed, employers are still eligible for a GAP Grant despite having an existing or new employee undertaking work-based learning such as NVQs (National Vocational Qualifications). Employers should confirm with the relevant training organisation before applying for the grant whether this training was recorded as an apprenticeship or otherwise. Training Organisation Commitment The training provider will inform Sheffield City Council about eligible apprentices who have commenced learning and employment in 2016 through the submission of a Request for GAP Grant form. The Request for GAP Grant form submitted to Sheffield City Council will include employer contact details and Employer Registration Number (ERN), along with the apprentice s Unique Learner Number (ULN), course enrolment date, framework and level. The training organisation will use its best endeavours to confirm that employers and their apprentices are eligible for the GAP Grant payment before submitting a Request for Grant form or a GAP Grant Application form to Sheffield City Council. The training organisation will help employers understand the GAP Grant criteria and assist them in completing relevant parts of the application. The training organisation will enrol apprentices and submit all required data (including a request for GAP Grant, using the 333 LDM code) to the SFA within a suitable timeframe. The training provider will inform Sheffield City Council of learners who do not complete 13 weeks of learning and are therefore not eligible for funding. GAP Grant Guidance 2016 MT Page 2 of 7
Approval of GAP Grants In order for GAP Grant payments to be made, all stated criteria must be met. Should any information regarding the apprentice, their enrolment or employment status prove incorrect or require clarification, a GAP Grant will not be issued. Where incorrect information is submitted and this influences the decision to award a grant, Sheffield City Council (the Council) or duly authorised representatives appointed by the Council or other relevant bodies will request the payment be returned. All employer and apprentice details provided during the course of the GAP Grant application process require verification against data held by the Skills Funding Agency (SFA). As such, it is imperative that training providers input and upload apprentice s Individual Learner Records (ILRs) to the SFA in a timely manner. Training providers are also required to ensure the correct LDM code (333) is applied to each individual apprentice in connection with whom a grant is being applied for. Please note that in instances where the GAP Team are unable to verify apprenticeships against the SFA database, payment to employers may be delayed or may not be possible. Payment of GAP Grants GAP Grant payments can only be approved after employers provide confirmation that learners have remained in employment for 13 weeks from the date of enrolment with their training organisation and are continuing with their training programme. From this point, the GAP Team will conduct approval checks and where all paperwork is submitted correctly and on time, by both the employer and training provider aim to make payment within 20 weeks from the date of enrolment. Please note, this timeline is reliant on application forms being submitted before the 13 week date and training providers completing the necessary paperwork to ensure records appear in the Skills Funding Agency data. Payments will be made via BACS directly into employers bank accounts. It is therefore vital that employers respond to a request from the GAP Grant Team requesting relevant bank details (Trade Supplier Request form). This is to allow employers to be set up as a Council Trade Supplier. Failure to respond to this request will delay payment. Grant Weighting The GAP initiative helps South Yorkshire businesses recruit individuals aged 16 to 24 into employment through the apprenticeship programme. The GAP Grant places added value on those sectors and skills considered to offer the greatest economic benefits to the region, with financial awards weighted accordingly. 2016 GAP Grants apply to apprentice enrolments on or after 1st January 2016. All apprenticeships are eligible for a grant. If the apprenticeship framework an apprentice is following is not listed in the table attached, the grant will be paid at a basic rate. The basic grant amounts are: Level 2 = 1,120; Level 3 = 1,500; Level 4 = 1,800 GAP Grant Guidance 2016 MT Page 3 of 7
Apprenticeship Frameworks Attracting Weighted GAP Grants 2016 Basic Grants Values L2-1,120 L3-1,500 L4-1,800 Boosted Frameworks L2 L3 L4 L5+ Environmental Conservation 1,420 2,000 Land-based Engineering 1,420 2,000 Broadcasting Technology / Broadcast Production 2,450 2,450 Creative and Digital Media 2,000 Cultural and Heritage Operations 1,120 2,000 Design 1,420 2,000 Live Events and Promotion 1,420 2,000 Music Business 1,420 2,000 Sound Recording, Engineering & Studio Facilities 1,420 2,000 Technical Theatre 1,420 2,000 Business, Innovation and Growth 2,450 Legal Services 2,000 2,450 Management 1,120 1,500 2,450 2,450 Project Management 2,450 Providing Financial Services 1,120 2,000 Social Media and Digital Marketing 1,500 2,450 Building Energy Management Systems 2,000 Building Services Engineering Technology 2,000 Construction Building / Specialist 1,420 2,000 Construction Civil Engineering 1,420 2,000 Construction Management 2,450 2,450 Construction Technical 2,000 Plumbing and Heating / Heating and Ventilation 1,420 2,000 Refrigeration and Air Conditioning 1,420 2,000 Surveying 2,000 Advanced Manufacturing Engineering 2,450 Building Products Industry Occupations 1,420 2,000 Combined Manufacturing Processes 1,420 2,000 Composite Engineering 1,420 2,000 Electro-technical 2,000 Engineering Construction 1,420 Engineering Environmental Technologies 2,450 Engineering Manufacture 1,420 2,000 Extractives and Mineral Processing Occupations 1,420 2,000 GAP Grant Guidance 2016 MT Page 4 of 7
List of weighted Frameworks eligible for GAP grants Framework L2 L3 L4 L5+ Extractives and Mineral Processing 1,420 2,000 Fashion and Textiles: Technical 2,450 Food and Drink 1,120 2,000 Glass Industry 1,420 2,000 Laboratory and Science Technicians 1,120 2,000 Metal Processing and Allied Operations 1,420 2,000 Mineral Products Technology 2,450 2,450 Nuclear Working 1,420 Operations and Quality Improvement 2,000 Improving Operational Performance 1,420 2,000 Polymer Processing Operations 1,420 2,000 Power Engineering 2,450 Print and Printed Packaging 1,420 2,000 Process Manufacturing 1,420 2,000 Production of Coatings 1,420 2,000 Rail Engineering (Track) 1,420 Rail Infrastructure Engineering / Rail Services 1,120 2,000 Rail Traction and Rolling Stock Engineering 2,000 Sustainable Resources Management 1,420 2,000 Intelligence Operations 2,450 Information Security 1,120 2,000 2,450 IT Professional 2,000 2,450 IT Application Specialist 1,420 2,000 2,450 Life Sciences and Chemical Sciences 2,450 2,450 The table below lists examples of basic (unweighted) GAP Grant values. If an apprenticeship framework is not listed in the tables above, the grant payable will be at the basic grant value appropriate to its level Basic Grant Values L2 L3 L4 L5+ Business Administration 1,120 1,500 1,800 Customer Service 1,120 1,500 1,800 Retail / Sales & Marketing 1,120 1,500 1,800 Accountancy / AAT 1,120 1,500 1,800 Children & Young People s Workforce 1,120 1,500 1,800 Hairdressing / Barbering / Beauty Therapy 1,120 1,500 1,800 Vehicle Maintenance & Repair 1,120 1,500 1,800 Warehousing & Storage 1,120 1,500 1,800 ALL OTHER NON-WEIGHTED FRAMEWORKS 1,120 1,500 1,800 GAP Grant Guidance 2016 MT Page 5 of 7
Frequently asked questions (FAQs) Q: Can I claim more than one grant for the same apprentice? A: No. If you have previously received an AGE Grant (pre 1 st April 2015) or GAP Grant (from 1 st April 2015) for an apprentice, at any level, you cannot claim a new GAP Grant for the same learner. For example, if you have claimed an AGE or GAP Grant for a particular apprentice at Level 2, you will not be able to claim a new grant when they progress to Level 3, 4 or 5+. An exception to this rule is where your apprentice completes Level 3 and moves up to Level 4 while still in your employment. Upon graduation to Level 4 you may be entitled to a progression payment of 450. Q: Does my training provider apply for the GAP Grant on my behalf? A: No. Training providers are required to complete a Request for GAP Grant form on your behalf, which informs the GAP Team you have taken on an eligible apprentice, but they cannot complete the full application (as this requires business information, bank details and physical employer signatures). Once the GAP Team has received a Request for GAP Grant form submitted on your behalf by your training provider, we will contact you directly and send out the 2016 Application Form. This document which asks for apprentice details, a State Aid declaration, and your current business bank details must be submitted to the GAP Team in order to apply for a GAP Grant. Q: What does the De Minimis (State Aid) section of the application form relate to? A: As part of the GAP Grant application process, employers are required to disclose any previous government funding received in the last four financial years. This is to ensure European Union State Aid funding rules are not breached. If your organisation has not previously received any government funding (e.g. for training/development grants, apprenticeship funding) please insert Zero OR Nil OR 0 in the relevant boxes. It is essential that the De Minimis section of the application form is fully completed and signed before payment can be made. Q: My workplace is not in South Yorkshire. Can I still apply for a GAP Grant? A: No. The GAP Grant only applies to employers whose apprentice is based in a workplace with a postcode that falls within the boundaries of Barnsley Metropolitan Council, Doncaster Metropolitan Council, Rotherham Metropolitan Council or Sheffield City Council. If your workplace is located in another local authority area (e.g. North East Derbyshire, Bassetlaw) apprenticeship funding must be applied for under the national AGE Grant scheme through your training provider, or where relevant (West Yorkshire and Greater Manchester) the devolved funding scheme for your area. Q: Why are GAP Grant values different to AGE Grant values? A: Up until 31st March 2015, employers in South Yorkshire were only able to apply for grant funding through the national AGE scheme. AGE Grants are paid at a flat rate of 1,500 regardless of framework and level. Since 1st April 2015, the GAP Grant has replaced the AGE Grant in South Yorkshire, with responsibility for the distribution of apprenticeship grant funding devolved to the Sheffield City Region Local Enterprise Partnership (LEP) and Combined Authority. The LEP has opted to weight GAP Grant funding, placing added value on those sectors and skills considered to offer the greatest economic benefits to the region. Financial awards have been weighted accordingly. Please see the Apprenticeship Frameworks Attracting Weighted GAP Grants 2016 document for further details. GAP Grant Guidance 2016 MT Page 6 of 7
Q: How will we get paid? A: Once approved, your GAP Grant will be paid in a single transaction into your business bank account via BACS. In order to receive payment, you are required to submit your organisation s BACS details to the GAP Team as part of the application process. When GAP Grants are paid, the payment will come from BDR&S Creditors or Sheffield City Council and a reference will appear on your bank statement. Q: What is the Skills Funding Agency (SFA) and why are payments reliant upon SFA data? A: The Skills Funding Agency (SFA) is a non-departmental government organisation which funds skills training for further education in England. Each month the SFA provides the GAP Team with data from their national database which includes all apprenticeships meeting the criteria for GAP Grants in South Yorkshire. Once your training provider has uploaded your apprentice s Individual Learner Record to the SFA, requesting grant funding in the process, your apprentice s details should appear in the data extract received by the GAP Team. This allows your application to be checked for eligibility and, all being well, your grant approved. Q: Do we get paid after 13 weeks? A: No. The 13-week date is the point at which your organisation may qualify for a GAP Grant for the stated learner. It is not, under any circumstances, the point at which a GAP Grant will be paid. After the 13-week date, the GAP Team is required to conduct extensive checks to confirm the validity of the application, before approving grants and ordering payment. This process can take a number of weeks, potentially longer at peak times or when paperwork is completed late or incorrectly by employers or training providers. Once a grant has been approved, it can take up to 30 days for payments to be ordered and then processed by your bank branch. However in most cases transactions are completed after a few days. Q: Why can it take 20 weeks or longer to approve and pay GAP Grants? A: For a GAP Grant to be approved, both employer and apprentice details need to match data held by the SFA. Data extracts are received from the SFA on a monthly basis, which means it can take between one and four weeks to approve applications, depending on the relative timing of your apprentice s due date and the next data release from the SFA. Under the AGE Grant scheme, which applied to South Yorkshire apprentices up until March 31st 2015, payment could take up to 26 weeks to be released to eligible employers. The GAP Team endeavours to release funding, within 20 weeks, and in many cases in a shorter timeframe. However, this is dependent on the timely and correct completion of all necessary paperwork from employers and training providers. Q: Is there the potential for further delays in payment? A: In instances where required paperwork has not been fully completed by employers or training providers, it may take longer than 20 weeks to approve and pay GAP Grants. The GAP Teams requires a fully completed Application Form AND a signed Confirmation Form from employers, once the apprentice has been in employment and learning for 13 weeks. From training providers, the GAP Team requires fully completed Request for GAP Grant forms AND the timely submission of apprentice information to the Skills Funding Agency (with funding requested using the 333 LDM code) AND confirmation that the apprentice had not withdrawn from their framework before 13 weeks in learning. Upon receipt of all correctly completed required paperwork, the GAP Team will carry out all checks required in order to approve payment. GAP Grant Guidance 2016 MT Page 7 of 7