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Apprenticeship levy transfers are a great way of making the most of the levy funding - for both the transferring employer, and the employer receiving the funds.
After two years, funds are recouped by the Government on a monthly basis if the fund is not used or underspent by a levy-paying employer.
However, employers paying the levy can also transfer levy funds to another employer in a way that benefits both organisations.
For the employer receiving the funds, it is an excellent opportunity to develop staff through apprenticeships.
For employers who pay the levy and have unspent funds there is the option of transferring up to 25% of the annual levy contribution to another employer. This transfer takes place through Apprenticeship Service, which also facilitates the transfer. These funds can be used to fund new apprenticeship starts in other organisations.
This could be with:
The cost of the apprenticeship will be paid by the levy transfer, helping the employer receiving the funds develop skills within their workforce through work-based learning.
Any employer can receive a levy transfer to help them recruit new apprentices.
It is not permitted for employers to receive a transfer and transfer their own funds to another employer.
The employer sending the transfer must fund the whole of the apprenticeship (up to the funding band maximum). If there are insufficient funds, the receiving employer must pay 5% (co-investment) of the training costs. Any programme with costs over the funding band maximum must be met by the receiving employer.
The monthly price for the delivery of the apprenticeship is £500. However, the sending employer only has £450 in their levy account. The receiving employer will be required to pay 5% of the deficit (£2.50 in this example).
The video from the ESFA will help you add apprentices funded by transfer to your account
Since 2016, The Open University (OU) has offered higher and degree apprenticeships. We have an expert team who are able to guide you through the process of sending and receiving transfers. We work with over 400 employers to provide apprenticeships across health, social care, policing, digital, leadership and management.
The OU has a long history and pedigree of working with employers to address skills gaps. Our flexible, work-based apprenticeships are designed to fit around business requirements and are scalable across multiple locations.
Please contact us to find out more about the programmes we offer and learn more about levy transfers.
Help and resources are available for employers considering transferring funds and there are various sites which can be visited such as: Hire an apprentice or Fire It Up pages for general information about employing an apprentice. There is also a Government website: Find apprenticeship training to look at the different levels and types of apprenticeships.
Employers operating in Scotland, Wales or Northern Ireland, should check with the relevant apprenticeship authority for levy rules and information.