What is levy transfer?
A levy employer pays 0.05% of their payroll towards the Levy each year, and if they are not used, the funding is used to go to Government. However, this has changed, and Levy employers can now transfer up to 25% of their ‘Levy Pot’ to other companies solely for Apprenticeship training.
This is an excellent way to add new skills and train your teams.
Only the funding for training is transferred. Receiving employers will pay staff wages, new hires, NI and onboarding costs under their usual terms of employment.
How will transfer payments be made?
Levy employers will transfer payments monthly into your apprenticeship account. When sending an employer pledge a transfer, the levy employer agrees to fund an apprenticeship for the duration.
The money for a transfer is prioritised before sending employers own apprenticeship payments.
What can the funding be used for?
Once you accept the transferred funds, they can only be used to pay for apprenticeship training and assessment, up to the funding band maximum.
Non-levy employers (SME’s)
If the sending employer has insufficient funds, you will need to cover the cost via employer co-investment. So ensure you check this when applying.
Accepting funding (SME’s)
Once the employer reviews the application, they will accept or decline it. You will then need to confirm this transfer of funds. If you as the SME no longer needs the funding, you need to withdraw your application.
A transfer of levy funds is not a one-off payment. By agreeing to transfer levy funds to another business, a Levy employer commits to pay for a specific apprenticeship throughout its duration until the apprenticeship has been completed.
Levy to Levy transfer
If a Levy employer cannot complete the monthly payment for a transfer and you, as the receiving Levy employer, have enough funds in your own apprenticeship service account. The apprenticeship service will use your funds before you enter employer co-investment. Please note this note is for Levy employers only.
There are currently over 80 funding opportunities on the Gov website across a range of sectors https://transfers.manage-apprenticeships.service.gov.uk/opportunities
22 Nov 2021