How does transferring Apprenticeship Levy funds work?
For those Employers who pay the Apprenticeship Levy and have unused funds, these funds can be transfered to other Employers.
You can identify those in need by:
Speaking with other Employers within your immediate network
Reaching out to other Employers in your industry
In addition, working with regional partners
How much can be transferred from the Apprenticeship Levy?
Levy-paying Employers can transfer a maximum amount of 25% of their annual funds, using They can make transfers from their Apprenticeship Service account to as many Employers as they choose.
The Apprenticeship Service calculates this amount as follows:
The total amount of Levy declared in the previous tax year
With the English percentage (25%) applied
Plus the 10% top-up amount from the government
What Apprenticeship Levy Transfers can pay for?
Transferred Apprenticeship funds will be used to pay for the training and assessment costs of the Apprenticeships agreed with the receiving Employer.
Employers involved in transfering funds, must be aware of:
Funds are paid monthly for the duration of the Apprenticeship
Only Levy-paying Employers can make a transfer but any Employer can receive and use transferred funds
Sending and receiving Employers have to be registered on the Apprenticeship Service
A transfer can only be used to pay for training and assessment for Apprenticeship standards
Transfers can only be used for new starts, except where the Apprentice is changing Employer and an agreement to continue their Apprenticeship with their new Employer is made possible through a transfer of Levy funds
How to start an Apprenticeship Levy Transfer?
When Transfering funds, both Employers must first agree the details of the transfer of funds:
How many Apprentices
The costs involved
Once both Employers are in agreement, and registered on the Apprenticeship Service, the following steps must be taken:
Connect with each other via the Apprenticeship Service
Receiving Employer to add the Apprentice details
Both Employers to confirm the transfer
Employers who are transferring funds
Before Employers make a transfer from your Apprenticeship account, it’s important to make sure that you:
Have enough funds to transfer to another Employer
Have a clear understanding of the forecasted cost to you, which will cover the duration of the Apprenticeship you’ve agreed to fund through a transfer
Understand you will be funding the total cost of their Apprenticeship and not just the co-investment
Agree with the Employer who is receiving the transfer, details of the Apprenticeships you’re funding and that they are aware of the funding rules around transferring Apprenticeship funds
You should also know
You can’t transfer funds to another Employer if you currently receive an Apprenticeship Levy Transfer
If you’re currently transferring funds to another Employer, you can’t receive transferred funds to pay for your Apprenticeships
Transfer payments will leave your Apprenticeship Service account on the first day of each month
If the Apprenticeship stops, your transferred payments will stop as well
Employers who want to receive an Apprenticeship Levy Transfer
If you want to receive an Apprenticeship Levy Transfer from another Employer, you must be aware of the following:
You can only use the transferred funds for Apprenticeship training and assessment
transferred funds can only be used for Apprenticeship standards
you’ll need to create an account on the Apprenticeship Service to receive the transfer and pay for the Apprenticeship training
you’ll need to sign an agreement with the Education and Skills Funding Agency (ESFA)
transfer payments will be made monthly from the sending Employer to your Apprenticeship account
if the Apprenticeship stops then the funding will stop too
you won’t have to pay any funds back to the sending Employer
if the Employer sending you funds runs out of money, you must make the relevant Employer co- investment contribution