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TNP Calculator

Calculate total negotiated price values for apprenticeship programmes

What is TNP (Total Negotiated Price)?

The Total Negotiated Price (TNP) is the agreed price between you (the provider) and the employer for delivering an apprenticeship for one individual apprentice. It must only cover eligible costs related to that specific apprenticeship, up to the funding band maximum.

TNP Components (Per Learner):

  • TNP 1: Eligible costs for training and on-programme assessment for this learner (agreed between provider and employer)
  • TNP 2: Cost of end-point assessment for this learner (agreed with EPAO for non-integrated standards, or by provider for integrated standards). Only enter when cost is known - do not use estimates
  • Total TNP: TNP 1 + TNP 2 (must not exceed the funding band maximum)

Evidence Requirement:

You must break down TNP 1 against the 5 key headings of eligible costs and agree this with the employer. This can be documented in your contract for services.

The 5 Key Headings for TNP 1 Eligible Costs

When agreeing TNP 1 with the employer, you must break down costs against these 5 headings. Only eligible costs can be included:

1. Initial Assessment

  • • Initial assessment to confirm learner and programme eligibility
  • • Enrolment (onboarding) administration
  • • Supporting employer with apprenticeship service account
  • • Developing and agreeing the training plan

2. Off-the-Job Training

  • • Relevant tutor costs (salary, on-costs, travel and subsistence)
  • • Delivery location costs (room hire, facilities, overheads)
  • • Learning materials (printed, audio/visual, electronic)
  • • Training for mandatory qualifications (fully funded)
  • • Relevant training for non-mandatory qualifications
  • • Employer mentoring costs (if part of agreed training plan)
  • • Additional learning for exam re-sits

3. Materials and Consumables

  • • Physical materials used in delivery (non-capital items)
  • • Equipment or supplies for specific learning activities
  • • Personal protective equipment for off-the-job training

4. Peripheral Costs Including Assessment

  • • Progress reviews with provider, employer, and apprentice
  • • Peripheral costs for mandatory qualifications (registration, examination, certification, plus one re-sit)

5. Programme Governance, Management and Administration

  • • Lesson planning and quality assurance
  • • Management of subcontractors
  • • Staff involved in programme governance and administration
  • • Administration costs of arranging end-point assessment
  • • Costs of collecting and reporting employer co-investment
  • • Apprenticeship software system costs (MI system)

Note on Profit:

Commercial providers can make a surplus (profit) on eligible costs, except on items procured from external sources or subcontractor delivery fees. Providers delivering to their own staff or connected companies can only claim actual costs and must not make a profit.

Why Use the TNP Calculator?

Build Up Eligible Costs Per Learner

Calculate the total cost for one apprentice by adding up eligible costs across the 5 key headings. Each field includes helpful tooltips explaining what to include based on funding rules.

Verify Funding Band Compliance

Check that your total TNP doesn't exceed the maximum funding band for the apprenticeship standard

Prepare Evidence for Agreement

Document your TNP 1 breakdown to agree with the employer and meet evidence requirements

Check TNP 2 is Known Cost

Ensure you have an actual EPA cost (not an estimate) before entering TNP 2 in the ILR

How to Use the TNP Calculator

1Calculate Your TNP 1 Costs

Add up all eligible costs for this individual apprentice across the 5 key headings. Hover over the ? icon next to each field label to see detailed guidance on what to include:

  • • Initial assessment and onboarding
  • • Off-the-job training (tutor costs, materials, delivery costs)
  • • Materials and consumables
  • • Peripheral costs (progress reviews, mandatory qualification costs)
  • • Programme governance and administration

2Get the EPA Cost (TNP 2)

For non-integrated standards: Agree the EPA cost with the end-point assessment organisation (EPAO). They set the price.

For integrated standards: You (the provider) set the EPA cost. Only enter this when the cost is known - do not use estimates.

3Calculate Total TNP

Add TNP 1 and TNP 2 together. The tool will show you the total price for this individual apprentice.

4Check Funding Band Compliance

Enter the funding band maximum for the standard. The tool will verify that your TNP doesn't exceed it. Find funding bands on the Institute for Apprenticeships and Technical Education website.

5Agree with the Employer

Document the TNP 1 breakdown against the 5 key headings and agree the total TNP with the employer before the apprenticeship starts. This can be included in your contract for services.

Understanding What to Enter in Each Field

Every input field includes helpful guidance: Hover over the ? icon next to each field label to see detailed explanations of what should be included based on funding rules.

For example:

  • •Tutor Costs: Proportion of tutor/trainer/assessor salary and on-costs for time spent delivering off-the-job training to this apprentice
  • •Learning Materials: Cost of textbooks, workbooks, e-learning subscriptions, online resources - NOT capital equipment
  • •PPE for Training: Personal protective equipment required FOR TRAINING ONLY - NOT PPE for workplace duties (employer responsibility)

These tooltips help ensure you're entering the correct figures and only including eligible costs in each category.

The TNP Calculator Interface

The calculator provides a clear, structured interface organised by the five key cost headings. Each input field includes a ? icon with detailed guidance on what to include.

TNP Calculator showing the five key cost headings with tooltip guidance and validation

Critical Rules for TNP

  • •Per individual apprentice: TNP must cover eligible costs for one specific apprentice only, not averaged across a cohort
  • •Cannot exceed funding band: Total TNP must not be more than the funding band maximum for that standard
  • •Only eligible costs: You can only include costs from the 5 key headings - see ineligible costs list in funding rules
  • •No estimates for TNP 2: Only enter TNP 2 in the ILR when you have the actual EPA cost - estimates are not permitted
  • •Integrated vs non-integrated: For integrated standards, you set EPA costs. For non-integrated standards, the EPAO sets EPA costs
  • •Must agree with employer: TNP breakdown must be documented and agreed with the employer before the apprenticeship starts
  • •Evidence required: Break down TNP 1 against the 5 key headings and keep this documented (can be in your contract for services)

Common Ineligible Costs (Cannot Include in TNP 1)

These costs must not be included in your TNP 1 price:

Provider Costs

  • • Marketing and lead generation
  • • Staff recruitment and CPD
  • • Wider business costs (insurance, rent, utilities)
  • • Developing original teaching materials
  • • Provider/subcontractor induction
  • • Student support services

Employer Costs

  • • Apprentice wages/benefits
  • • Apprentice travel and subsistence
  • • Accommodation costs
  • • Personal protective clothing for work
  • • Employer induction activities
  • • Student membership fees

Qualification Costs

  • • English and maths up to level 2 (funded separately)
  • • Non-mandatory qualification fees
  • • Re-sits beyond the first for mandatory qualifications
  • • Any re-sits for non-mandatory qualifications

Capital & Other

  • • Capital purchases (land, buildings, machinery, ICT equipment)
  • • Depreciation
  • • Financial inducements or bonus payments
  • • End-point assessment costs (must be in TNP 2)

Tips for Calculating TNP

  • •Use the tooltip guidance: Hover over the ? icon next to each field to see exactly what to include based on funding rules - this helps ensure you're entering the right figures
  • •Calculate for each apprentice: TNP is per individual - don't average costs across a cohort. Each apprentice may have different eligible costs
  • •Work through the 5 headings systematically: Build up TNP 1 by going through each heading and adding only eligible costs for that specific apprentice
  • •Keep detailed records: Document how you've broken down TNP 1 against the 5 headings - you'll need this for evidence requirements and employer agreement
  • •Check funding bands first: Know the funding band maximum before calculating TNP so you don't exceed it
  • •Get actual EPA costs: Don't use estimated EPA costs - only enter TNP 2 when you have the confirmed price from the EPAO (or your own price for integrated standards)
  • •Review ineligible costs: Double-check you haven't included any costs from the ineligible list - these must not go into TNP 1
  • •No profit on procured items: Remember you can't add profit on items bought from external sources or subcontractor fees
  • •Include in contract for services: Document the TNP breakdown in your contract with the employer to meet evidence requirements

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