Transfer and Train the next generation – Levy Transfer

375,000 people have been directly supported by the apprenticeship levy scheme since it was launched in 2017, but that number could be so much higher.

We are asking our partners to support our “Transfer to Train” Campaign. Helping us to build a pledge of £1 Million of Levy transfer funds to make a clear commitment that apprenticeships should form a key part of helping employers such as the Health & Care Sector and others to recruit, train and grow.

We believe that building an inclusive apprenticeship programme brings a clear economic and business advantage to all those involved in this campaign. If you would like to get involved in our “Transfer to Train” campaign, please get in touch to register your interest.

Transferring unused funds to other organisations can benefit your business!

Transferring unused funds to other organisations can benefit your business!

Employers who pay the apprenticeship levy and have unused apprenticeship funds can find employers who want to receive a transfer. We want to explain how this process will work and what the benefits will be to your company.

A survey carried out by CIPD of more than 1,000 employers shows that nearly half (46%) of levy-payers will be encouraged to merely re-badge current training activity to comply with the new regulations. Among that group, more than half (52%) will re-badge existing training activity into level 2 apprenticeships, equivalent to five GCSEs.

Also, a fifth (19%) of levy-paying firms, including 35% of SMEs, don’t plan to use the levy at all to develop apprenticeships but will write it off as a tax. If you’re not using or making the most of your full Levy contribution, share it with other employers and gain added benefits for your business.

What Levy fund 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
Who can you transfer your Levy funds to?

Work with employers in your supply chain

Providing an employer in your supply chain with an apprentice will help them to develop their processes; this, in turn, will mean a faster and smoother delivery process for your company.

Get in touch with employers in your industry.

There will be organisations working within your industry dealing with products and services within your area of expertise but not in direct competition. Why not see if you can work in partnership with them, providing them with your unused levy contribution to your mutual benefit.

How much can be transferred from your Levy fund

In this phase, our teams develop your tailored apprenticeship programme identifying effective delivery methods, desired outcomes and opportunities to enrich the course content.

How the levy transfer works

How to start a Levy fund transfer

The employer sending and the employer receiving will first have to lay out an agreement, which will need to cover details such as the Apprenticeship standard(s), number of Apprentices, and the Apprenticeships’ cost.

Once both employers are registered with the apprenticeship service, the following actions must be taken in their accounts to complete a transfer:

  1. Connect with each other
  2. Receiving employer to add the apprentice details
  3. Confirm the transfer

Employers who are transferring funds

Before you make a transfer from your apprenticeship account, make sure that you:

  1. Have enough funds to transfer to another employer
  2. 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
  3. Understand you will be funding the total cost of their apprenticeship and not just the 5% co-investment
  4. Agree with the employer who is receiving the transfer, details of the apprenticeships you’re funding
  5. Are aware of the funding rules around transferring apprenticeship funds

There are a few points that employers need to be aware of before agreeing to any transfers, and this includes – You can’t transfer funds to another employer if you are currently receiving a transfer. If you’re currently transferring funds to another employer, you can’t receive transferred funds to pay for your apprenticeships.

Payments will leave your apprenticeship service account on the first of each month, and if the apprenticeship stops, your transferred payments will stop as well.

Employers who want to receive a Levy fund 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.
  • If the apprenticeship stops, then the funding will stop too.
  • 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 training cost 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.
Get in touch

If you are unsure on Levy fund transfers and would like to talk to one of our Levy fund experts, please contact us today on 0800 783 2545, and they can talk this over with you.

Paragon Skills is currently rated as an Ofsted Grade 2 Good provider with aspirations to achieve Grade 1 Outstanding.

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