Levy-paying employers can transfer up to 25% of their Apprenticeship levy payment to multiple Employers, allowing them to use their levy pot more effectively.
Passing on a portion of the levy means companies can help fund training in smaller companies or those in their supply chain that might not have the resources to fund Apprenticeships themselves.
Watch this short video for a quick overview on transferring Apprenticeship Service Funds.
How transferring funds will work
Employers who pay the Apprenticeship levy and have unused Apprenticeship funds can find employers who want to receive a transfer in a number of ways, for example:
- get in touch with employers in your industry
- speak with Qube Learning to discuss potential employers
- work with regional partners
- work with employers in your supply chain
What transfers can pay for
Transferred funds will be used to pay for the training and assessment cost of the Apprenticeships agreed with the receiving employer.
Sending and receiving employers need to know that:
- funds are paid monthly for the duration of the Apprenticeship
- only levy-paying employers can make a transfer
- any employer can receive and use transferred funds
- sending and receiving employers have to be registered on the Apprenticeship service
- a transfer can only be used to pay for training and assessment for Apprenticeship standards
- transfers can only be used for new starts
What you need to do to start a transfer
The sending employer and the receiving employer need to first agree the details of the transfer of funds; for example, which Apprenticeship standard, how many apprentices, the cost.
Once both employers are registered Qube learning will assist both employers with the following:
- connect each other’s accounts
- receiving employer to add the Apprentice details
- confirm the transfer
Employers who are transferring funds
Before you make a transfer from your Apprenticeship account, make sure that you:
- have enough funds to transfer to another employer
- have a clear understanding of the forecasted cost to you, which will cover the duration of the Apprenticeship you’ve agreed to fund through a transfer
- understand you will be funding the total cost of their Apprenticeship and not just the 5% co-investment
- agree with the employer who is receiving the transfer, details of the Apprenticeships you’re funding
- are aware of the funding rules around transferring Apprenticeship funds
Employers who want to receive a transfer
If you want to receive a transfer from another employer you must be aware of the following:
- you can only use the transferred funds for Apprenticeship training and assessment
- transferred funds can only be used for Apprenticeship standards
- you’ll need to create an account on the Apprenticeship service to receive the transfer and pay for Apprenticeship training
- you’ll need to sign an agreement with the Education and Skills Funding Agency (ESFA)
- transfer payments will be made monthly from the sending employer to your Apprenticeship account
- you won’t have to pay any funds back to the sending employer
- if the employer sending you funds runs out of funds, you must make a 5% contribution to the cost of Apprenticeship training and the government will pay the remaining 95% (this is called co-investment)
- a transfer can fund up to the funding band maximum of a standard, if the cost of training is more, you’ll have to pay the difference to the training provider
- if a training provider transfers funds to you, they cannot deliver the training for that funded Apprenticeship
- funding rules around transferring Apprenticeship funds
State aid
10% of all the funds you receive as a transfer from another employer count as state aid.
So that you do not go over the allowed limit of €200,000 for state aid in any 3 year period, you should check:
- how much state aid you’ve already received
- if you’re part of a connected organisation, how much combined total state aid you have received
FAQ
How much can you transfer
You can transfer a maximum amount of 25% of your annual funds.
Does the receiving employer have to be a non-levy payer?
No – you can transfer your levy to any employer.
Can I transfer funds to another employer if I currently receive a transfer?
No, also, if you’re currently transferring funds to another employer, you can’t receive transferred funds to pay for your Apprenticeships
When will the transfer payments leave our account?
Transfer payments will leave your Apprenticeship service account first, each month.
What happens if the apprenticeship stops?
If the Apprenticeship stops, transferred payments will stop as well