Are you interested in opportunities to support health and social in Shropshire, Telford & Wrekin? You will find information here on the Apprenticeship Levy, levy transfer and how to apply for transferred funds to support workforce development. Further detailed guidance please read here
Apprenticeship Levy Transfer
If your organisation has an annual pay bill of over £3 million pounds you are a levy payer. From April 2019, levy-paying employers can transfer up to 25% of their annual levy funds to another employer or apprenticeship training agency to pay for training and assessment costs of apprenticeships. They can make transfers to as many employers or apprenticeship training agencies as they wish so long as they don’t exceed the transfer cap.
Levy transfers are managed via the Digital Apprenticeship Service. Payments are made monthly from the sending employer to the receiving employer’s account. Importantly, an employer wishing to receive and use transferred funds must register and create an account with the apprenticeship service and ensure they have a signed agreement with the Education & Skills Funding Agency (ESFA). More information is available at Managing Apprenticeship Funds
Levy Transfer rules
Levy transfer can only be made by levy-paying employers and several rules apply, including:
- employers must re-sign an ESFA employer agreement, updated to include transfers (online apprenticeship account)
- transferred funds can only be used to pay for training and assessments delivered under apprenticeship standards, for new starters to apprenticeships from 1st May 2018; transferred funds can’t be used to fund apprenticeships delivered under a framework
- if you currently transfer funds to another employer, you are unable to receive transferred funds to pay for your apprenticeships
- an employer currently receiving transferred funds cannot then transfer funds to another employer
- if a training provider transfers funds to you, they cannot deliver the training for the apprenticeship they are funding (regardless of main or sub-contractor status)
- any funds transferred retain their initial expiry date
- you cannot stop payments once you have approved the apprenticeship on the apprenticeship service (unless apprenticeship stops)
- funds cannot be transferred to employers with fewer than 50 employees where the apprentice is aged 16-18 years old (or 19-24 years old who has an education, health and care plan, or is a care leaver). Note: these apprentices are eligible for full government funding
The sending employer and receiving employer must be registered with the apprenticeship service and have an online digital account. Both employers must have a signed agreement with the Education and Skills Funding Agency (ESFA), completed through the online apprenticeship account.
Transferred funds can only pay for the training and assessment costs of apprenticeship standards agreed with the receiving employer, and are paid monthly for the duration of the apprenticeship.
Individuals can be funded to undertake an apprenticeship at the same or lower level to acquire substantive new skills. 20% off the job training must be part of the apprentices contracted hours.
I’m interested in receiving a transfer from another employer – what else do I need to know?
You can only use the transferred funds for apprenticeship training and assessment and transferred funds can only be used for apprenticeship standards.
You will need to create an account on the apprenticeship service in order to receive the transfer and pay for the apprenticeship training. Transfer payments are made monthly from the sending employer to your apprenticeship account. You will also need to sign an agreement with the Education & Skills Funding Agency (ESFA). For more information visit https://www.gov.uk/guidance/transferring-apprenticeship-service-funds