Levy Transfers Explained
Large employers that pay the apprenticeship levy can choose to transfer up to 25% of their levy funds each year to other businesses, to pay for their apprenticeship training and assessment.
Transferring your levy funds to another business
Transferring levy funds is a way of supporting other businesses by deciding which sectors, skills or local areas you’d like to fund.
For example, you could support the health and social care sector across England, or fund nurseries in your local area, or support any apprenticeships in a particular town or city.
Which businesses and apprenticeships you support with a transfer is your choice.
The amount you can transfer is calculated as 25% of your previous financial year’s apprenticeship levy funds.
You can either make a pledge to transfer your levy funds so that businesses can apply to you for funding, or make a transfer to a business you know by inviting them to make a connection.
See the Government's website for more information
Receiving levy transfer funds
Transferred funds are used to pay for 100% of the training and assessment costs of the apprenticeship, and transferred funds cover the cost for the whole duration of the apprenticeship.
Before you consider a levy transfer you will need to know the type of apprenticeship training you are looking for.
You can view available transfer opportunities on the Government’s pledge page. You can filter the results to show those organisations that have pledged in your location, sector, the type of apprenticeship you are looking to fund and apprenticeship level.
The transferring company will accept or reject your application. Once accepted, the transfer funds can only be used for a new apprenticeship start. They can be a new or existing employee, but they cannot have already started an apprenticeship.
The exception to this is when an apprentice changes employer. They can continue their apprenticeship with a new employer funded by a transfer of levy funds.
Transfer payments will be made monthly into your apprenticeship account. When sending employers pledge a transfer, they agree to fund an apprenticeship for the duration.
The money for a transfer is prioritised before the sending employers own apprenticeship payments.
If the sending employer has insufficient funds you will need to cover the cost via employer co-investment.