Please ensure Javascript is enabled for purposes of website accessibility

The Apprenticeship Levy: Transferring funds update

16 Apr 2019
Previously, Levy-paying employers have been able to share their funds with only one other employer, meaning their supply chain or smaller businesses within their sector or community can benefit from funded training.

In this guide, we will explore what the major changes mean for you and your business.

Recent changes explained

Last week the Education and Skills Funding Agency (ESFA) confirmed that Levy-paying employers will now be able to transfer unspent apprenticeship funds to as many employers as they choose, effective from July 2018.

Apprenticeships and Skills Minister Anne Milton announced the new rules at an event last week, whilst discussing how the Apprenticeship Levy is giving employers a real opportunity to invest in high-quality training, affecting the growth of their business and enabling them to get the skilled workforce they need to prosper.

Anne Milton commented on the change:

"It’s fantastic to see so many businesses taking advantage of the opportunity that the Apprenticeship Levy provides. As well as kick starting their apprenticeship programmes, business is now recognising the benefits an apprentice brings to the work place with enthusiasm and new ideas.

We want to keep improving apprenticeships for everyone and I am delighted that we are now extending the flexibility of the Apprenticeship Levy."

The announcement follows another significant boost to apprenticeships this week, with new high-quality apprenticeship standards in bricklaying, plastering and teaching and learning being approved for delivery.

Only two per cent of employers pay into the Levy fund but astonishingly that investment has funded more than 40 per cent of the apprenticeships started in the last year.

What you need to know

For companies using transferred funds, they will only be able to use the funds to pay for apprenticeships delivered under apprenticeship standards, it cannot be used to fund apprenticeship training delivered under a framework.

Employers can transfer a maximum of 10 per cent of the annual Levy fund value to any employer, which includes employers in their supply chain, other employers in the sector, and apprenticeship training agencies.

For non-Levy paying employers who are wanting to receive transferred funds, they will need to register and create an account and obtain a signed agreement from the ESFA.

Employers who pay the apprenticeship Levy and have unused apprenticeship funds can find employers who want to receive a transfer through the channels below:

  • Employers in your supply chain
  • Employers in your industry
  • Apprenticeship Training Agency (ATA)
  • Regional partners

How to start a transfer

The employer wanting to send their Levy funds over firstly need to agree on the details with the receiving employer. For example: which type of apprenticeship standard, the number of apprentices and also the cost.

After both employers have registered on the apprenticeship service, they must complete the following in order to complete the transfer:

  • Link with each other
  • The receiving employer to add the apprentice details
  • Confirmation of the transfer must be made

Over to you

Now that companies can transfer their funds to as many businesses as they want, Levy payers who have unused funds can now transfer to other organisations. This is a welcomed change for many businesses looking to utilise the Levy to grow and develop their workforce. If you’re looking to help other businesses by transferring your unused funds, please see further guidance here.

If you’ve got any questions about transferring funds please reach out to us on Twitter, LinkedIn or email.

Or if you’re looking for further information about the Apprenticeship Levy in general, please contact our expert team today: