November was an excellent month for Apprenticeship funding. The Incentives for hiring apprentices were extended and the Levy Transfer pledge webpage went live.
As a quick recap
A levy employer with an annual wage bill of £3m or more pays 0.05% of their yearly payroll towards the Levy each year. The company can use their Levy to invest in new talent and fund key staff training through Apprenticeships. Their Levy pot expires after two years and goes to the Treasury.
FE week noted in May 2021 that in the previous two years, just short of £2bn of unused levy contributions expired, which translates to £2bn of missed opportunities to develop new talent in all sectors and for companies to improve their employee's skills.
Companies can now pledge and receive levy transfers.
Levy transfer is an excellent way for SMEs to train new hires, upskill and existing teams as it covers 100% of the apprenticeship training and assessment. Employers can also receive £3000 *incentives (*ends January 31st 2022) when they hire a new apprentice.
For Levy employers, it's a great way to use rather lose the money they have already paid into the Levy and help smaller companies and charities develop their enterprise and create new opportunities for young people.
Note* receiving employers will pay wages, NI and new hire onboarding costs under their usual terms of employment.
Pledging and transferring levy funds
Receiving a transfer
Any employer can receive a transfer, even if they do not pay the Levy. You will need an apprenticeship service account to receive a transfer.
A receiving employer can only use the funds to pay for the agreed apprenticeship training costs. They need to choose a training provider, end-point assessment organisation, and apprentice before setting up the apprenticeship service transfer.
There are currently over 92 funding opportunities on the Gov website across a range of sectors https://transfers.manage-apprenticeships.service.gov.uk/opportunities
If you are interested in pledging or applying for Apprenticeship funding, please don't hesitate to contact the Aspire to Learn team.
10 Dec 2021