A new update to the ESFA funding rules brings immediate action for apprenticeship providers – with a sharp focus on supporting care leavers. If you are not already including eligibility checks for the £3,000 care leavers’ bursary in your initial assessment process, now is the time to act.
The care leavers’ bursary offers £3,000 of vital support to apprentices who have left care or are still in care. Yet, the Department for Education (DfE) has found, through local authority data, that many eligible apprentices are missing out on this support.
To tackle this, new guidance confirms that all apprenticeship providers must now explicitly give every apprentice aged 24 or under the opportunity to declare if they are a care leaver. This isn’t just best practice – it is a requirement.
From 1 August 2025, you must:
Ask every new apprentice aged 24 or under if they are a care leaver or still in care as part of your initial assessment.
Record evidence that this opportunity was given – this must be documented as part of your initial assessment records.
Offer current apprentices the opportunity to declare care leaver status if you did not previously ask.
If a declaration is made now, you can submit a late claim for the bursary.
The latest ESFA update also makes the following clear:
Late Claims: Providers can still submit late claims where eligible apprentices were not previously asked about their care status.
Tax-Free: The bursary is tax-free and does not count as income for Universal Credit calculations.
Payment Schedule: Guidance has been clarified on when the third payment is made for shorter and foundation apprenticeships.
Evidence Format: Confirmation of care leaver status from a local authority does not have to be in a specific format.
For providers, this is both a compliance issue and an opportunity to make a real difference. Missing this step means some of your most vulnerable apprentices could miss out on life-changing financial support. It is also now a funding rules requirement, so your processes must reflect these expectations.
Review and update your initial assessment paperwork and process to ensure every eligible apprentice is asked about their care status and that this is clearly recorded.
Audit your current apprentices – if you haven’t previously asked about care leaver status, reach out and give them the opportunity to declare.
Train your team – make sure all staff involved in onboarding and initial assessment are aware of the new requirement.
Read the full DfE update here:
DFE Update: Further Education – 2 July 2025
For all apprenticeship providers, this is an essential update. Make sure your systems and processes are ready by 1 August 2025. If you need help reviewing your processes or ensuring compliance, the AiVII team can help.