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New Employment Model: Changes to Enhanced Learning Credits & Further Education and Higher Education Schemes

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From 01 April 2016 the Enhanced Learning Credits (ELC) and Further Education and Higher Education schemes will see some changes, including the introduction of auto-enrolment of all current Regular Service Personnel.

The MOD promotes lifelong learning among members of the Armed Forces, and this is encouraged through the Learning Credit schemes. The aim of the changes to the schemes are to make ELC easier to use and more accessible to all current Service Personnel (through auto-enrolment); and to enable them to make use of ELC to enhance personal and professional qualifications in a more flexible way, both while serving and to aid career transition from the Services.

The New Employment Model (NEM) programme is a wide-ranging review of the Terms and Conditions of Service for Service personnel. NEM aims to produce a modern offer that supports operational capability and better supports lifestyle choice.

Under the ELC and FEHE schemes qualifying Service Personnel (SP) and Service Leavers (SL) receive financial help with the cost of learning. ELC allows a single payment in each of a maximum of three separate financial years; or now a single, aggregated lower tier payment. The FEHE scheme provides full tuition fees for eligible SL undertaking their first further or higher level qualification.

The level of funding will remain the same, with an ELC lower tier of up to 3 payments of up to £1000 in 3 separate financial years and a higher tier of up to 3 payments of up to £2000 in 3 separate financial years.

FEHE will continue to pay in full for a first qualification from Level 3 (2 x A Levels or equivalent) up to undergraduate degree level.

The key changes to the schemes to be introduced on 01 April 2016 are as follows:

  • All Regular Service Personnel (SP) currently in service will be auto-enrolled to be eligible for both Schemes, as will future SP on completion of Phase 1 training • A new ELC payment has been created: an aggregated lower tier payment, a single payment of up to £3000 for those with 6 or more years of qualifying service, which will count as all 3 payments.
  • The qualifying service required for lower tier payments and FEHE will increase from 4 to 6 years from 1 Apr 2017. SP who have already accumulated 4 years qualifying service before 1 Apr 2017 will keep their entitlement to use lower tier payments and FEHE.
  • Post service access to ELC and FEHE, for all those leaving on or after 1 Apr 2016, will be reduced to 5 years.
  • Those who left between 1 Apr 11 and 31 Mar 16 (both dates inclusive) will have until 31 Mar 21 to use ELC or FEHE – 5 years from now. Anyone who left before 01 April 2011 will retain 10 years of post-service access.

More information is available in JSP 898 and at www.enhancedlearningcredits.com