Introduction
The MoD has optimised funding for Service leavers so they can use learning credits during resettlement with their individual resettlement training costs (IRTC) grant to pay towards the cost of eligible learning activities. The learning activity must meet fully the criteria of either the enhanced learning credit (ELC) or standard learning credit (SLC) scheme. This provides better targeted public funding where the learning leads to the same outcome – a nationally recognised qualification.

Claiming IRTC with ELCs
Claims for both ELC and IRTC to pay towards a single resettlement learning activity should be submitted in accordance with the individual scheme regulations. The 20% minimum personal contribution should be paid on receipt of the claims authorisation note (CAN) from ELCAS and MoD will be invoiced separately by the learning provider to pay the difference. Someone claiming ELC may then submit a retrospective IRTC claim on completion of the course to claim back the difference up to the maximum IRTC allowance. The Service leaver may continue to apply routinely for pre-payment of IRTC using the current procedure.

Funding combinations during resettlement
IRTC may be used together with ELC or SLC but all three in cannot be amalgamated. ELC and SLC are designed to fund different learning purposes and cannot be used together. For example, SLC may not be used to fund an exam for a course of study which has been supported by ELC. The MoD monitor providers closely to ensure costs remain competitive and are not inflated to obtain the maximum funding available.

When using IRTC with ELC or SLC during resettlement, the individual may use the IRTC element to pay for, in part or in full, the 20% minimum personal contribution. This exception will only be permitted under these specific circumstances; otherwise the rules for each scheme remain unchanged. The MoD decided to optimise funding to enable Service leavers to undertake valid resettlement activities to help them to secure employment. Some element of personal contribution will usually continue, especially for more expensive, higher level qualifications where the 20% minimum will more than likely be exceeded.

However the order in which ELC or SLC and IRTC are used can affect the overall net value of the funds to Service leavers. ELC may only be used once for a single educational activity, regardless of whether the cost of the activity is less than the value of the credit whereas IRTC may be used against multiple learning events if the grant value exceeds the cost of the resettlement activity. Any unspent IRTC may be directed towards another training activity. Because IRTC may be used to finance multiple courses or training whilst ELC may not, Service leavers should work out how best to optimise the funding support available when undertaking resettlement. For SLC the position is different as more than one claim for smaller scale learning activities may be submitted in each financial year provided that the credit maximum, currently £175, is not exceeded. Service people should use advice and guidance available from education, learning and resettlement advisers.

Optimisation of funding for Service leavers
Other than changing the policy preventing the use of ELCs or SLCs with IRTC, the separate policies regarding IRTC, ELCs and SLCs remain unchanged. However, the order in which they are used can affect the overall net value of the funds to Service leavers. ELCs may be used only once for a single educational activity, regardless of whether the cost of the activity is less than the value of the credit, whereas the IRTC may be used against multiple learning events if the grant value exceeds the cost of the resettlement activity. Any unspent IRTC may be directed towards another training activity. Noting that IRTC may be used to finance multiple courses or training while ELCs may not, it is the Service leaver's responsibility, using the advice and guidance offered from education, learning and resettlement advisers, to determine how best to optimise the funding support available when undertaking resettlement. For SLCs the position is different, as more than one claim for smaller-scale learning activities may be submitted in each financial year provided that the credit maximum, currently £175, is not exceeded.

Implementation rules and guidance
Rules
In essence:

• IRTC + ELC    Yes
• IRTC + SLC    Yes
• IRTC+ELC+SLC    No

• IRTC may be used in concert with ELC or SLC to fund a recognised learning activity, in accordance with the SLC and ELC scheme rules
• The policy and procedures for submitting an ELC, SLC or IRTC claim have not changed. No new allowance has been created. The funding is not combined into one pot
• An SLC or ELC claim should be submitted with the individual making their minimum 20% personal contribution
• An IRTC claim should be submitted either in advance of the allowance or in retrospect, once the learning activity has completed
• These processes are completely separate in accordance with learning credit and resettlement regulations.

• IRTC may be used with ELC or SLC to fund a learning activity during resettlement, but in all instances the criteria of the relevant learning credit scheme must be met. The regulations about each learning credit scheme are published annually in Joint Service Publications (JSP) 898, Part 4, Chapter 3 ELC and Part 4, Chapter 4 SLC
• IRTC may be used to pay for the minimum 20% learning credit personal contribution, either in full or part, where a learning activity meets the criteria for both schemes
• The 20% minimum personal contribution using ELC towards the cost of the higher level learning (level 3 and above only) should be paid up front by the claimant directly to the course provider. Any element of IRTC used to fund the learning can be claimed in advance (up to 80%) or in full or part on course completion
• Using IRTC either in full or part together with ELC or SLC must comply with learning credit policy. Most notably, if using IRTC with ELC then an ELC approved provider must be used and if using IRTC with SLC then the learning activity must lead to the award of a nationally recognised qualification
• The full course cost for a claimant accessing SLC support should be paid by the claimant direct to the course provider. The difference up to a maximum of �’175 after deducting the 20% minimum personal contribution is paid by MoD on course completion. Any element of IRTC used to fund the learning can be claimed in advance (up to 80%) or in full or part on course completion
• If using IRTC with SLC then a career transition partnership (CTP) preferred supplier or any other accredited provider may be used
• It remains the individual claimant�fs responsibility, with advice and guidance from an education, learning and resettlement adviser, to determine the best way to optimise the funding support available in resettlement to pay for learning leading to a qualification
• If after using IRTC together with ELC or SLC there is an unused IRTC element, it may be used to pay towards another training activity during resettlement
• It is not possible to accrue, or carry forward, any unused element of ELC. The principle remains of one use of an ELC in any one financial year.
• It is possible to make more than one SLC claim in each financial year providing the maximum credit, currently �’175, is not exceeded
• Just as it is not possible to use SLC and ELC to pay for the same learning activity (SLC are used to pay towards lower level learning whilst ELC are used to pay towards higher level learning (level 3 and above), it is not permitted to combine all three funding streams of IRTC, SLC and ELC towards the cost of a single resettlement activity. The claimant should decide on the most appropriate funding mechanism
• It is recommended that claimants should consider using the learning credit to fund the learning to the maximum level for which they are eligible during their resettlement, before using IRTC to pay towards the same activity. This may optimise the funding available where a different and additional learning activity might be considered.

Funding examples using IRTC with learning credits
Using IRTC with ELCs

Example 1
A Service leaver who qualifies for IRTC and who has accrued the four years' minimum eligible ELC scheme membership applies for a course costing £1,500.

Claimant pays £500 to provider to cover the minimum 20% contribution (£300) required to use ELC and £200 to cover the remaining balance less the maximum ELCs available.

	Item	£	Calculation	Notes
A	Gross course cost	1,500
B	20% personal contribution	300	(20% of A)	Under ELC rules
C	ELC grant (£1,000 maximum) used	1,000		£1,000 maximum paid by the Service
D	Outstanding balance	200	A-(B+C)
E	Total personal contribution	500	D+B
F	IRTC grant (£534 maximum) used	500		£500 used
G	Remaining IRTC	34	534 - F

In this example the applicant uses £500 of their IRTC towards the cost of the course. The applicant claims back £500 from their IRTC grant, leaving a balance of £34 to contribute towards the cost of any other resettlement training. The £1,000 ELC invoice is processed by ELCAS and the MoD pays the provider directly. Should the applicant wish, they may apply for pre-payment of up to 80% of their IRTC expended, noting that if it is not used it will be reclaimed in the next period.

Example 2
A Service leaver who qualifies for IRTC and who has accrued the four years' minimum eligible ELC scheme membership applies for a course costing £3,000.

Claimant pays £2,000 to provider to cover the minimum 20% contribution (£600) required to use ELCs and £1,400 to cover the remaining balance less the maximum ELC available.

	Item	£	Calculation	Notes
A	Gross course cost	3,000
B	20% personal contribution	600	(20% of A)	Under ELC rules
C	ELC grant (£1,000 maximum) used	1,000		£1,000 maximum paid by the Service
D	Outstanding balance	1,400	A-(B+C)
E	Total personal contribution	2,000	D+B
F	IRTC grant (£534 maximum) used	534		£534 used
G	Remaining IRTC	0	534 - F

In this example the applicant uses all (£534) of their IRTC towards the cost of the course. The applicant claims back the full £534 from their IRTC grant. The £1,000 ELC invoice is processed by ELCAS and the MoD pays the provider directly. As above, the applicant may apply for pre-payment of up to 80% of their IRTC to reduce the initial outlay.

Example 3
A Service leaver who qualifies for IRTC and who has accrued the eight years' minimum eligible ELC scheme membership applies for a course costing £6,500.

Claimant pays £4,500 to provider to cover the minimum 20% contribution (£1,300) required to use ELCs and £3,200 to cover the remaining balance less the maximum ELC available.

	Item	£	Calculation	Notes
A	Gross course cost	6,500
B	20% personal contribution requirement	1,300	(20% of A)	Under ELC rules
C	ELC grant (£2,000 maximum) used	2,000		£2,000 maximum paid by the Service
D	Outstanding balance	3,200	A-(B+C)
E	Total personal contribution	4,500	D+B
F	IRTC grant (£534 maximum) used	534		£534 used
G	Remaining IRTC	0	534 - F

In this example the applicant uses all (£534) of their IRTC towards the cost of the course. The applicant claims back the full £534 from their IRTC grant. The £1,000 ELC invoice is processed by ELCAS and the MoD pays the provider directly. As above, the applicant may apply for pre-payment of up to 80% of their IRTC to reduce the initial outlay.In this example, the applicant uses all (£534) of their IRTC grant towards the cost of the course. The applicant claims back the full £534 from their IRTC grant. The £2,000 ELC invoice is processed by ELCAS and the MoD pays the provider direct. The applicant may apply for pre-payment of up to 80% of their IRTC to reduce the initial outlay.