What is a Levy Transfer?

We have discussed Apprenticeship funding requirements for businesses, and we have also talked about what an Apprenticeship levy is. 

But one topic we haven’t covered is the levy transfer. More specifically, what do you know about it? 

A Levy Transfer is the process where an employer that pays the Apprenticeship Levy can transfer a portion of their unused levy funds to another employer to help pay for Apprenticeship training and assessment costs. 

Large employers with an annual pay bill over £3 million must pay the Apprenticeship Levy. This is 0.5% of their pay bill. The funds go into a digital account managed through the government’s Apprenticeship service, and they can be used to fund Apprenticeship training. 

Any unused funds in a business’s levy pot expire after 24 months. If a levy-paying employer doesn’t use all their levy funds, they can transfer up to 50% of their annual funds to another employer. This helps smaller employers (who don’t pay the levy) access funding for Apprenticeships, helping use those funds which could be lost be utilised for additional apprentices or learners looking to complete an Apprenticeship.  

The levy-paying employer offers to transfer funds to a smaller business. The receiving employer accepts the transfer through the government’s Apprenticeship Service. The funds can only be used for Apprenticeship training and assessment costs for newly enrolled learners onto Apprenticeships. 

All businesses are required to have an Apprenticeship service account if they want to receive a transfer of funds. This way, large businesses can build the right connections with local, smaller businesses and support them. 

Employers can promote their levy transfers by providing detailed information about various aspects of their organisation. This includes specifying their geographical location, which can help potential apprentices or partner organisations understand where opportunities are available. Additionally, employers can highlight the sector in which they operate, whether it be healthcare, technology, construction, or any other industry. This information is crucial as it allows interested SMEs to identify opportunities that align with their learner’s career interests or business needs. 

Furthermore, employers can specify the types of Apprenticeships they are offering, such as standard, higher, or degree Apprenticeships. Each type caters to different levels of education and skill development, making it essential for employers to clearly communicate what they are providing. 

By advertising these details, employers not only attract potential apprentices who are looking for specific opportunities but also enhance their visibility within the Apprenticeship market. This targeted approach can lead to more effective matches between employers and apprentices, ultimately benefiting both parties and contributing to the overall growth of the workforce in their respective sectors. 

Transfers can go to: 

• Businesses within the same supply chain
• Charities or smaller businesses in the same sector
• Local employers or community partners 

The transfer is a vital way to help support the SMEs, as well as not losing your levy pot. 

As a large business, if you know of a SME who could benefit from a levy transfer, then we advise these businesses to consider supporting those smaller companies so they can allow their employees to gain industry specific qualifications. 

Fareport strongly supports levy transfers for businesses. We know that larger businesses can support SMEs who are looking to upskill their current workforce, which is why we always strongly advise those who have a levy pot to use it before they lose it! 

Contact Fareport today to learn more about how you can get additional funding support from businesses as an SME, call 01329 825805. You can also use the government website to find a business to fund the upskilling of your team. 

You may be sitting on a valuable resource that could significantly benefit your business and its workforce development initiatives. 

Apprenticeship funding is designed to support the training and development of new and existing employees through structured learning programs. However, many businesses find themselves with surplus funds that they have not utilised effectively. 

This unused funding presents a unique opportunity for your company to invest in the skills and capabilities of your workforce. By leveraging this financial resource, you can create tailored Apprenticeships that align with your business goals and address specific skills gaps within your team. Whether you are looking to upskill current employees or bring in new talent, utilising your Apprenticeship funding can lead to enhanced productivity, improved employee retention, and a stronger competitive edge in your industry. 

Moreover, engaging in Apprenticeship programmes can foster a culture of continuous learning and professional development within your organisation. It allows you to cultivate a skilled workforce that is well-equipped to meet the evolving demands of your industry. Additionally, Apprenticeships can help you attract employees who are looking at a upskill opportunity, including those who may not have considered traditional training paths. 

If you are unsure about how to effectively use your unused Apprenticeship funding, there are several resources available to guide you. Consider reaching out to local training providers such as Fareport who can help you design and implement a successful Apprenticeship strategy tailored to your business needs. 

If you are a larger business with unused Apprenticeship funding, now is the time to take action. By investing in Apprenticeship programmes, you can unlock the full potential of your workforce, drive innovation, and ensure your business remains competitive in an ever-changing market. Don’t let this opportunity pass you by, explore how you can make the most of your Apprenticeship funding.