Article

Apprenticeship pay guidance and FAQs

This guidance, FAQs and pay scenarios support the changes to apprenticeship pay, which came into force from Monday 1 July 2024.

13 June 2024

On 1 July 2024, the NHS Terms and Conditions of Service (TCS) Handbook was amended to include the following provision:

Section 1: Pay structure (England) 

Pay for staff who take up an apprenticeship 

1.25 In order that staff do not experience a detriment to their basic pay as a consequence of undertaking career development beneficial to both them and the service, the following pay preservation provision applies. 

1.26 This provision covers situations where an existing employee commits to undertake a formal apprenticeship programme in agreement with their current or another NHS employer which, on successful completion, would qualify them for a role* where the evaluated pay band is the same as or higher than the band of their current post. In such cases, for the duration of that programme their basic pay will be the higher of the following -  

  • The rate for the apprenticeship role that new entrants to the service would receive.
  • The pay step point they would receive had they remained in the role they were employed in immediately before commencing the apprenticeship programme. This will include eligibility for pay step progression during the apprenticeship as if they had remained in their prior role. 

(see also Annex 30)

Annex 30: Apprenticeships 

Section 1 outlines the policy intention that staff will not suffer a detriment to their basic pay when they undertake apprenticeships as part of agreed career development. 

1.25 In order that staff do not experience a detriment to their basic pay as a consequence of undertaking career development beneficial to both them and the service, the following pay preservation provision applies. 

1.26 This provision covers situations where an existing employee commits to undertake a formal apprenticeship programme in agreement with their current or another NHS employer which, on successful completion, would qualify them for a role where the evaluated pay band is the same as or higher than the band of their current post. In such cases, for the duration of that programme their basic pay will be the higher of the following -  

  • The rate for the apprenticeship role that new entrants to the service would receive.  
  • The pay step point they would receive had they remained in the role they were employed in immediately before commencing the apprenticeship programme. This will include eligibility for pay step progression during the apprenticeship as if they had remained in their prior role.” 

This provision extends to basic pay only. Eligibility for enhancements will be based on the contractual requirements of the apprenticeship role. If the apprenticeship role does attract enhancements the rate of payment will be based on the preserved pay band. If the apprenticeship role does not attract enhancements, previous entitlement to enhancements is not preserved. 

For the purposes of Section 1, 1.26 a formal apprenticeship programme is a period of employment accompanied by a requirement to study for a formal qualification. For an apprenticeship to qualify it needs to have been approved for delivery by the relevant statutory body, be delivered by a registered training provider and have a registered end point assessment organisation. 

The provision of basic pay preservation continues to apply, for eligible staff, on return to an apprenticeship following an agreed break in learning. 

All other contractual terms continue to apply for the duration of the apprentice programme.  

The following FAQs will help employers and staff understand how this provision may affect them. 

FAQs for employers:

  • Firstly, you need to consider whether the changes to the terms and conditions apply to your apprenticeship schemes. This pay preservation provision only applies to apprenticeships as defined in FAQ 2 for employees. 

    If you are already preserving the basic pay of existing employees when they commence an apprenticeship, in line with the upcoming changes to section 1.25/1.26, then you do not need to take any action to implement the changes. 

    If apprentices appointed from your own organisation or another NHS organisation are paid the same as new entrants, then you may need to take some action to implement the changes. 

    Using whatever system you use to manage apprenticeship data (ESR or otherwise), you will need to undertake an assessment of your current apprentices to identify: 

    • If they were appointed from an existing NHS role?  
    • If they were, do they meet the eligibility criteria which is that they are training to qualify for a role where the evaluated pay band is the same or higher than their previous post and they must be on a formal apprenticeship programme – more detail can be found in annex 30. 
    • If they are eligible, you will need to assess whether their basic pay is less than it would have been if they had not moved on to the apprenticeship.  
    • If it is, then you will need to adjust their basic pay to the pay step point they would have received if they had remained in their previous role, including any increments they would have received. This change will only be effective from 1 July 2024 and back pay before this date will not be payable. 
    • If their basic pay on the apprenticeship is more than they would have got if they had stayed in their previous role you should continue to pay them at their current rate.  
    • Where they may qualify for a pay step during the remainder of their apprenticeship then you will need to ensure that the correct date to trigger this is recorded in ESR.  This will be based on when they first moved into the band. 

    You may also need to review your apprenticeship adverts and documentation to ensure that the terms and conditions applicable to existing NHS staff reflect these changes. You may also wish to add this change to any communications sent to apprentices, asking them to come forward if they believe they are covered by the new provision. 

  • This will depend on how you record your apprentices in your organisation. 

    There is an apprenticeship module in ESR which enables all staff on apprenticeship programmes to be recorded. This enables the recording of a range of information including apprenticeship start date, apprenticeship details, expected and actual completion dates. There is a standard report in BI which would enable you to identify all staff on a current programme. This would then need to be cross-checked with other ESR data such as salary and latest trust start date to identify existing employees who had joined an apprenticeship programme. Once identified the circumstances of each individual may need to be looked at manually to determine whether any adjustment to salary is required. 

    If the ESR apprenticeship module is not used, then trusts will need to consider where else they record their current apprenticeship data. This may be accessible through the apprenticeship service website. Once a list of current apprentices has been obtained, this would need to be checked against ESR to identify existing employees at the apprenticeship start as outlined above. 

    It is also recommended that organisations work with their trade union colleagues to communicate the changes to apprentices and provide an opportunity for individuals who think they have been affected to come forward. 

    In all cases it is advised to work in partnership with trade union colleagues on the implementation arrangements. 

    If you have not been able to identify all affected staff before implementation of this provision, please note that back-pay will only be payable up to 1 July 2024. 

  • Removing any detriment to basic pay current staff may experience if they were to take up an apprenticeship is key to the success of the NHS’s aspirations to increase the apprenticeship offer and retain experienced staff, a key commitment made in the NHS Long Term Workforce Plan.  

    The majority of NHS employers already preserve the pay for existing staff in the way this provision requires. Confirming this arrangement in the Terms and Conditions of Service handbook was a commitment made in the 2023 NHS pay deal. No additional funding specifically for this policy provision is available.  

  • Apprentices from non-Annex 1 employers may be covered by this provision depending on the exact nature of their previous contract (e.g. whether they were on dynamic terms with the NHS) and whether the other eligibility criteria about the nature of the apprenticeship and its pay levels apply.

  • No, it does not as the job that medical apprentices qualify for is covered by different terms and conditions of service. This provision is not carried over into medical contracts. However, employers may choose to pay and fund these apprentices in a similar way, but this is for local determination.

  • Formal breaks in apprenticeship learning have to be of one month’s duration or longer and are usually due to long-term illness or maternity/parental leave. (Short-term absences (including strikes), annual leave and public holidays are not classed as breaks in learning, as the apprentice is able to continue actively learning). 

    During the break in learning the pay preservation principle continues to apply, but the apprentice’s eligibility for pay during this period will be determined according to terms and conditions, or local policies. Service during the break in learning will be counted for pay step purposes. 

  • If an apprentice ends their apprenticeship before qualifying the pay preservation provided by this provision ceases to apply at the point of withdrawal. If however, they move into a new apprenticeship role they may retain eligibility depending on the nature of this new apprenticeship (e.g. its pay rate would be lower than they are currently paid and on qualification they would be able to apply for a higher paid role). 

    If they move into a substantive role, their service during their apprenticeship will be recognised but the pay preservation provision will no longer apply. Their salary on appointment will be determined by reference to the relevant terms and conditions, such as pay on promotion. 

  • If an apprentice moves to a different apprenticeship in a different NHS employing organisation, it will be for the new employer to determine eligibility for pay preservation, in line with section 1.25 of the TCS handbook. 

  • No, the new pay preservation arrangements only cover basic pay and not HCAS payments.  

    However, if an individual is undertaking an apprenticeship that is located in a HCAS zone, then it will be paid in accordance with Annexes 8 and 9 of the NHS Terms and Conditions Handbook.  (see scenario 8 – high-cost area supplement)  

  • Application of this pay preservation provision may lead to some staff on the same apprenticeship programme being paid differently. This provision has been introduced as part of the 2023 pay agreement to remove possible financial detriment for existing staff wishing to undertake an apprenticeship as part of their career development. This also supports the commitments made in the NHS Long Term Workforce Plan to retain and develop the NHS workforce.   

    The NHS Staff Council has produced guidance on determining pay for apprenticeships as a whole. 

  • The change to the handbook is effective from 1 July 2024.  This means that there is no entitlement to the preserved rate of pay prior to this date.  If you are delayed in identifying your affected staff and moving them onto their revised pay point, then they will be entitled to have this backdated to 1 July 2024 but not before this.

  • The pay preservation provision applies to situations where an existing employee accesses an apprenticeship which on completion will qualify them for a role at the same or a higher band than their current post.

    Where the role taken up on completion is at the same band (sideways move) promotion is not applicable and the employee will continue in their band and the provisions of section 1.18 will not apply.

    Where the role taken up on completion of the apprenticeship is at a higher band, this will be a promotion and the employee will move to the entry point of that band and their pay step date will be reset.

    In most cases this will produce an increase in earnings (basic pay plus any unsocial hours and/or recruitment and retention premium (RRP).

    However, there may be some cases where it does not. The apprenticeship pay preservation provision only applies to the basic pay of the role the employee was in before they started the apprenticeship. Unsocial hours and RRPs are not covered by it.

    However, if the employee was earning unsocial hours payments or had an RRP in the apprentice role in the 13-week reference period prior to promotion, the pay on promotion provisions in section 1.18 might apply.

    For example,

    If the employee was on band 2 as an apprentice and then went into a band 3 role on completion with substantially the same pattern of unsocial hours, this might otherwise result in a reduction in earnings. In such a case their salary would be maintained at the higher level until the pay rate in the new band does produce a higher salary.

    Or  

    If the apprentice role attracted an RRP but the role into which they are promoted at the end of the apprenticeship does not, their salary would be maintained at the higher level until the pay rate in the new band does produce a higher salary. 

FAQs for staff: 

  • If you were previously working in an NHS role (in this or another NHS organisation) and on commencement of your apprenticeship your basic pay was point preserved (i.e. your basic pay when you commenced an apprenticeship, remained the same), then you do not need to take any action in respect of the changes. 

    If you were previously working in an NHS role and on commencement of your apprenticeship your basic pay was reduced, then your basic pay may need to be adjusted if you are eligible. To be eligible you must be on a formal apprenticeship scheme and be training for a role where the pay band is the same or higher than your previous post.   

    If you meet the eligibility criteria your basic pay should be returned to the pay step point you would have received if you had remained in your previous role.  This will include any pay steps you should have received.  This change will only be effective from 1 July 2024 and back pay will not be payable. Please look out for communications from your employer about how this will be managed and whether you need to apply. If you do not hear anything following July 1 please contact your local Trade Union representative or HR team. 

    If you worked for a non NHS employer before commencing your apprenticeship, section 1.25/1.26 and annex 30 does not apply.  

  • The addition of section 1.25 and 1.26, annex 30 will cover all apprenticeships which have an agreed apprenticeship standard as published by the Institute for Apprenticeships and Technical Education (IFATE). This requires the apprenticeship to be in paid employment which includes at least six hours per week off-the-job training, paid holiday leave, hands on experience in the role and a formal assessment which leads to a nationally recognised qualification. If you are in any doubt, please contact your HR or apprenticeship team.

  • No, this new provision only preserves your basic pay. Your recruitment and retention premium is an addition to pay linked to your current post. When you move to your apprenticeship post this RRP will cease.  

    You will only get an RRP if the apprenticeship post into which you are moving is already covered by an RRP or one is subsequently applied to the post while you are in it. 

  • No, this new provision only preserves your basic pay. Eligibility for unsocial hours and overtime during the apprenticeship will be based on the work pattern that applies in your apprentice role.  

    When you start the apprenticeship, you will either stay on the pay band you are on now and continue to be eligible for pay step progression or you will move to the rate at which new entrants to the service will be getting paid on the apprenticeship, whichever is the higher.  

    If you work unsocial hours in the apprentice role, enhancements will be calculated using the pay point or pay rate you are on. 

    For many apprentices, the pattern of hours worked could change during the course of the apprenticeship programme depending on placements and off-the-job training. Any unsocial hours worked at any point during the apprenticeship will be calculated based on the pay point or rate you are on at the time. You will not have any previous unsocial hours earnings preserved. 

    Similarly, the pay preservation provision does not apply to any earnings from overtime that you would have worked had you stayed in your current role. If you work overtime in your apprentice role, the enhancement for hours in excess of 37.5 a week will be calculated on your basic pay rate at the time.

  • Where the pay rate in a devolved administration is higher than its equivalent in England, it is the pay point that is preserved not the actual amount of pay. 

  • As your previous employer was a non-annex 1 organisation but you were on dynamic terms and conditions that followed the NHS Terms and Conditions of Service handbook, you will be covered by this provision if you meet the other eligibility criteria. 

Scenarios

  • a) Alex is a nursing associate currently on the top pay point of band 4. Alex wishes to undertake a nursing degree apprenticeship (2-year conversion/top up route) which, on completion, will qualify them for a band 5 registered nurse role.  

    In their trust, apprentices are paid using annex 21 which means that in the first year of the course pay is set at 70% of the top of band 5. For 2023/24 this amounts to £24,206.7, which is less than Alex’s current pay point (£27,596pa).  Therefore, in order for Alex to not experience a detriment to basic pay whilst undertaking the apprenticeship, their pay will be preserved at their current pay point (top band 4). As they are already at the top of band 4 there will be no further pay progression during the apprenticeship.  

    b) Kim is an assistant in the radiology department on the top of band 3 (currently £24,336pa). They wish to undertake a four-year degree apprenticeship that will qualify them for a band 5 radiology position. 

    Their Trust uses annex 21 for degree apprenticeships. As this is a 4-year course, the pay would be as follows: 

    Year 1 – 60 per cent of top band 5 (£20,748.6). 

    Year 2 – 65 per cent of top of band 5 (£22,477.65). 

    Year 3 – 70 per cent of top of band 5 (£24,206.70). 

    Year 4 – 75 per cent of top of band 5 (£25,935.75). 

    This would mean that Kim would qualify for pay preservation as they would be better off staying at their top band 3 rate. Their pay in years two to four would need to take into account pay rates at that time but it is likely that their full band 3 rate will continue to be higher than the annex 21 calculation.  

  • Bhavya is a band 7 specialist allied health professional wishing to undertake an apprenticeship to retrain in human resources (HR). On completion of this apprenticeship, Bhavya would qualify for a band 5 position within the HR profession. As Bhavya has decided to undertake the apprenticeship as a change of career, even though the pay is less than they currently earn, Bhavya’s pay will not be preserved and they will be paid according to local policy/arrangements for apprentices.  

  • Harry was a band 3 porter for just under two years at the entry level pay point, immediately before starting a clinical support worker apprenticeship which, on completion, will qualify them for a band 3 role.  

    For Harry to not experience a detriment to pay whilst undertaking the apprenticeship, Harry’s pay will be preserved at the pay point they received in the band 3 porter role immediately before commencing the apprenticeship programme. Harry’s pay will progress up band 3 during the apprenticeship just as it would have done if they had remained in their prior role, subject to pay step progression criteria. So shortly after starting their apprenticeship Harry will have completed two years' service and become eligible for pay step progression. 

  • Charlie is currently undertaking an apprenticeship and requires a formal break in learning due to sickness absence for elective surgery. Charlie has been receiving preserved pay during their apprenticeship. During their sickness, pay will be calculated in accordance with section 14 of the NHS TCS Handbook. On return from sickness absence, the provision of basic pay preservation will continue to apply. The period of absence will not prevent pay progression so long as other qualifying criteria are met. 

  • Khadija is a band 3 administration assistant. Khadija has been accepted into an assistant accountant apprentice role in the finance directorate. The role involves completing a level 4 professional accounting apprenticeship which will qualify Khadija to apply for a band 5 assistant accountant position at the end of it.  

    The apprentice role has been job matched at band 4 and advertised as such to external applicants.  

    Khadija is entitled to pay preservation at their existing band 3 or the rate for the apprentice role new entrants would receive - whichever is the higher. In this case, new entrants would be paid at band 4 so Khadija will move to the entry point of band 4 when they start their apprentice role.  

  • Pat is working as a band 3 porter. They work a shift pattern that involves regular nights, and they also work on average four hours overtime a week in addition to the standard 37.5 week. 

    Pat is due to start an advanced carpentry apprenticeship, which on completion will qualify them for a band 4 carpenter role. The role involves a standard work pattern (9am-5pm) Monday to Friday. Regular overtime is not expected to be offered with this role. 

    Pat is entitled to have their band 3 basic pay preserved including eligibility for pay progression. Their previous USH or overtime payments are not preserved. However, if they work unsocial hours or overtime in the apprenticeship role they will receive payment in the usual way.

  • Asha joined the trust as a band 3 patient transport care assistant on 1 February 2022 (£20,330- based on 2021/2022 rate of pay). On 1 October 2023 they commenced the associate ambulance practitioner apprenticeship which will qualify them for a band 4 emergency medical technician role. The apprenticeship takes a minimum of 13 months to complete so in their trust they have been paid under annex 21 of the NHS TCS Handbook at 70 per cent of the top pay point of band 4 (£19,317).  

    From 1 July 2024, the new terms and conditions in section 1.25/1.26 apply to Asha. Prior to the start of their apprenticeship, they were on the entry step point of band 3 (£20,330). However, their pay step would have been due 1 February 2024 (£24,336)* after two years in post, subject to normal pay progression arrangements. Therefore, from 1 July 2024 Asha should be placed on the top pay step point of band 3 (£24,336)* until completion of their apprenticeship. 

    Note: No backpay is due.

  • Femi is working as a band 3 occupational therapy (OT) assistant in a trust location that falls within the inner London HCAS payment zone. Femi is on the top step point of band 3 and their pay is made up of basic pay at band 3 + the inner London High-Cost Area Supplement (HCAS).  

    Femi is due to start an OT degree apprenticeship based at a trust site that falls within the outer London HCAS payment zone.  

    External applicants to the apprenticeship are paid according to annex 21 which provides a starting salary for new entrants which is lower than band 3.  

    When Femi starts the apprenticeship they will therefore be entitled to preservation of their basic pay in band 3. However, because the apprenticeship is based in an outer London HCAS payment zone they will get the outer London HCAS rate and not the inner London HCAS rate. Femi will be paid the top step point of band 3 (preserved) + the outer London HCAS.  

    Femi's colleague Helen is in the same role, band and on the same pay step point as Femi but due to take up an OT degree apprenticeship based at the same trust location they currently work. Helen will therefore be paid on the top step point of band 3 (preserved) + the inner London HCAS.