The funding formula for Traineeships measures the volume of delivery through student numbers and the size of their programme.

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How Traineeships are funded

Funding for 16 to 18 traineeships (and 19- to 24-year-olds, and up to age 25, with an education health and care plan), is calculated through the young people’s funding methodology. The funding formula measures the volume of delivery through student numbers and the size of their programme.

Funding for 19 to 24 Traineeships uses the adult funding model. This is made up of three elements.

  • The single work-placement and work-preparation
    • for traineeships starting on or before 31 August 2020, this is funded at £970
    • for traineeships starting on or after 1 September 2020, this is funded at £1,500

If work preparation training leads to a qualification, you must offer the qualification from an Ofqual-regulated awarding organisation. Non-regulated learning must be a learning aim categorised as ‘Work Preparation SFA traineeships’ on Find a learning aim. These aims will not attract additional funding as they are included in the single traineeship rate for work placement and work preparation training.

  • GCSE English and maths or other qualifications to support progress towards GCSE, ESOL, and Essential Digital Skills Qualifications (if required) – these are funded though the matrix using the same method as ESFA funded AEB provision.
  • A flexible element designed to help the learner move into work or remove a barrier to them entering work – again this is funded though the matrix using the same method as ESFA funded AEB provision.

19 to 24 Traineeship funding may also include job outcome payments in some cases. These means that 50% of the achievement payment is paid if the learner starts a job before achieving the learning aim. If the learner then achieves the learning aim, the remaining achievement payment is also paid.

For the rules in full see the ESFA’s guidance below:

Additional funding – employer incentive payments

In 2020 the government invested additional funding into Traineeships to help boost the economy. This was announced as part of the Treasury’s Plan for Jobs on 8 July 2020 and is intended to increase the number of Traineeship opportunities available.

  • Employers providing new work placements may be eligible for an incentive payment per trainee as an incentive and to help meet the costs of doing so. The payment is £1,000 for each new placement and the funding is limited to 10 trainees per employer.
  • Employer incentives are currently only agreed for work placements from 1 September 2020 until 31 July 2022, until the funding made available for payments is all used. The ESFA are reviewing the impact of the new incentive payment as part of considering continuation in future years.