Guidance

Receive a levy transfer from another business to fund an apprenticeship

Information for employers about getting a levy transfer to pay for apprenticeship training and assessment costs.

Applies to England

What is levy transfer?

Apprenticeships can be funded by a levy paying employer transferring up to 25% of their unused levy to a different employer.

Transferred funds are used to pay for 100% of the training and assessment costs of the apprenticeship up to the funding band maximum.

Transferred funds cover the cost of the whole duration of the apprenticeship.

How to view available transfers?

You can view available transfer opportunities on the pledge page. Employers may decide to transfer their levy to specific sectors or businesses. They may also choose to fund particular levels of apprenticeships.

Employers can advertise transfers with four details:

  • location
  • sector
  • type of apprenticeship
  • apprenticeship level

You can apply for the pledge that matches the levy employer’s needs. This isn’t limited, and you can apply for a pledge even if you don’t match all four advertised details. You can also apply for multiple pledges.

How to apply for a transfer

You need an apprenticeship service account to apply for a transfer to fund an apprenticeship for your business.

If you do not have an apprenticeship service account you can read the guidance on setting one up.

Before logging into your account and starting the process you need to:

  • know which apprenticeship standard your apprentices will be undertaking
  • know how many apprentices you need funding for
  • know the location of where your apprentice will be working from
  • know the expected apprentice start date

You can apply for multiple apprentices within one application if they are doing the same apprenticeship. If your apprentices are doing different apprenticeships you need multiple applications.

Once you have applied for a transfer you can see the status of your application in your apprenticeship service account.

Your application is shared directly with the employer. They will review and confirm if they have accepted your application.

If your application is rejected you can apply for another transfer or get funding via reservation

What can transfer funds be used for?

Once you accept the transferred funds they can only be used to pay for apprenticeship training and assessment, up to the funding band maximum.

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.

Accepting funding

Once the employer reviews the application they will accept or decline. You need to confirm this transfer of funds. If you no longer need it you must withdraw your application.

How transfer payments will be made?

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.

Non-levy employers

If the sending employer has insufficient funds you will need to cover the cost via employer co-investment .

Levy employers

If the sending employer cannot complete the monthly payment for a transfer and you have enough funds in your own apprenticeship service account we will use these funds before you enter employer co-investment.

Published 27 September 2021