This example shows how the College deals with the employer contribution in collaborative partnership working.

The SLN for this group is £2732 and with basic area uplift this becomes £3278. Assumed employer contribution is 50% so we will receive approximately £1639 per learner.

[Note that the payment could be further increased by additional multiplier factors due to where the trainee lives, postcode and the programme weighting factor. Payments will be reduced by a further 25% if the employer is classed as large]

A basic example:

For a trainee attracting £1639

We are paying 75% to collaborators.

Collaborator gets £1229 College gets £410

Collaborator pays College -£250 Collaborator pays College £250

Employer pays collaborator £1639

Total £2618 £660

The collaborator makes a commercial decision as to how much to charge the employer. This could be greater than the SFA’s assumed contribution.

Assuming that the collaborator charges at the intended rate, the payment profiles are:

Collaborator: 2618/3278 = 80% College: 660/3278 = 20%

If collaborators make no charge to employers, the situation changes significantly, in this case:

Collaborator gets £1229 College gets £410

Collaborator pays College -£250 Collaborator pays College £250

Total £979 £660

Collaborator: 979/1639 = 60% College: 660/1639 = 40%

For higher programme weightings and/or trainees in disadvantaged postcodes, the payments will be greater than in this example.

For a programme delivered in Newham area uplift = 1.2, with programme weighting factor of 1.25 and trainee living in a disadvantaged postcode with factor 1.15, the expected payment would be:

£3278 x 1.25 x 1.2 x 1.15 =£5654 for which we would receive £2827.

For a partner charging the full rate to the employer we have:

For a trainee attracting £2827

We are paying 75% to collaborators.

Collaborator gets £2120 College gets £707

Collaborator pays College -£250 Collaborator pays College £250

Employer pays collaborator £2827

Total £4697 £957

Collaborator: 4697/5654 = 83% College: 957/5654 = 17%

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