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Employers now able to transfer 10% of their Apprenticeship Levy funds to another employer

Employers now able to transfer 10% of their Apprenticeship Levy funds to another employer

01 May 2018

Develop Training (DTL) can reveal that, from May, large employers who pay the Apprenticeship Levy will for the first time be allowed to transfer up to 10% of their annual funds to other organisations.

These transfers will give employers more flexibility and help larger employers with unspent levy funding to suport smaller employers in taking on apprentices. However, to begin with, transfers will be limited to one organisation. After user feedback from the first phase, this number will likely increase over time, meaning that eventually employers will be able to split several smaller payments across multiple organisations.

Key dates

  • Levy-paying employers who use the apprenticeship service will be able to see their transfer allowance at the end of April (the 10%).
  • Employers will be able to make a transfer to one other organisation from May.
  • The receiving organisation will be able to start adding apprentice commitments from May.
  • For these new commitments, training providers can then be paid from June.

ESFA warning

The ESFA has advised those transferring the funds to be aware of “the funding rules around transferring apprenticeship funds, which will be published at a later date”. Once a transfer is made, it cannot be refunded “to the sending employer”.

How to find a non-levy paying employer

Levy-paying employers who want to transfer funds can find companies who want money in a number of ways. For instance, they can work with an employer in their own supply chain, get in touch with an Apprenticeship Training Agency, or work with regional partners.

Find out more about how to transfer funds and find a suitable non-levy paying employer

Click here to see the range of apprenticeship programmes offered by DTL

Do you need help with the Apprenticeship Levy? We can explain the levy process and provide a number of industry relevant apprenticeships to suit your requirements

Click here to have an Account Manager contact you