Did you know that large employers in England can transfer up to 50% of their apprenticeship levy funds each year to other businesses? If you are considering taking on an apprentice and are concerned how you will meet the cost, an apprenticeship levy transfer may be just what you are looking for. Large businesses with unused levy funds can pledge them to SME companies who need a boost to their apprenticeship budget. To access an apprenticeship levy transfer you’ll need an active Apprenticeship Service account. Once logged in, you either apply for public pledges or make a connect to a known business who wishes to transfer their funds to your company specifically.
Who can apply for a transfer of apprenticeship levy funds?
Firstly, to be eligible to apply for a transfer of levy funds you must also be applying to take on a new apprentice who has not yet commenced their apprenticeship with you.
Beyond that, any business with an active Apprenticeship Service account can apply for a levy transfer. Companies of all sizes are eligible, from the largest corporations to the smallest local businesses. Both levy paying and non-levy paying employers are able to access these funds too.
How do I find an apprenticeship levy transfer donor?
Your Apprenticeship Service account is where you can find and connect with businesses who wish to transfer their levy funds. Many companies who will not use the entirety of their levy will choose to offer or pledge it to another business rather than let it expire. They will generally set some basic criteria regarding sector, location and type of apprenticeship but are often flexible. You apply for a pledge in your account, and it is shared with the other employer. It is the decision of that individual business as to whom they allocate their funds to.
Alternatively, you may find an employer with unused funds who will choose to connect with you directly. Many employers will choose to approach a local small business or will select someone they already work with to offer their unused levy funds to. This has the benefit of encouraging growth in their local region and community. The process is then completed via your apprenticeship service account.
What can the apprenticeship levy transfer pay for?
Any funds received from an apprenticeship levy transfer must be used for a new apprentice. This can be an existing member of staff who you are looking to upskill via an apprenticeship or a completely new employee, the important point is that they must not already have begun their apprenticeship with you.
The apprenticeship levy funds are used to pay for training and assessment and cannot be spent on wages or other costs.
How can Pro-Apprenticeships help with apprenticeship levy transfers?
As an experienced apprenticeship provider, Pro Apprenticeships are well placed to help you navigate an apprenticeship levy transfer. We can help you navigate your Apprenticeship Service account, advise how funding works, help you manage the admin associated with the process, and even help you to connect with employers looking to transfer funds.
To learn more about how we can help you with an apprenticeship levy transfer, get in touch with our friendly team today.