How to access available apprenticeship levy funds?

The Levy Transfer scheme was launched in April 2018, levy-paying employers could transfer a maximum amount of 25% of their annual funds. 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.

What can transfer funds be used 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

In summary, 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.

Why do you need to Set up the Digital Apprenticeship Service (DAS) account

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
  • Transfers must be made within the financial year which ends March 2023.

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.

The following steps in our  Setting up the Digital Apprenticeship Service (DAS) account guide.

Accepting funding

Once the employer reviews your application they will either accept or decline. You will then need to confirm this transfer of funds. If you no longer need it you need to withdraw your application, and if you still need it payment will be made.

Transfer payments will be made monthly into your apprenticeship account which you can review and track via your DAS account. When sending employers to pledge a transfer, they agree to fund an apprenticeship for the full duration of the apprenticeship programme.

The money for a transfer is prioritised before the sending employers’ own apprenticeship payments.

Mark Botha

Chief Executive, Paragon Skills

The partnerships we have forged have allowed Paragon Skills to back the small and medium-sized enterprises [SME] community, ensuring access to new talent and providing opportunities to succeed in the digital age, regardless of background.

SMEs are the life-blood of the local economy and we are committed to helping as many as possible to not just recover from COVID-19, but adapt and thrive, preparing their workforce for the future.

What if funds run out from the employer providing the transfer

If the sending employer has insufficient funds it is down to you as the receiving employer to cover 5% of the training cost and government will cover the remaining 95% this is called co-investment .

How to view available transfers

You can view available transfer opportunities on the government 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.

Alternatively, you can get in touch with our team to see if we can pair you with an employer who has already made a pledge as part of our transfer to train campaign – get in touch today to find out more or complete this short form and one of our team will contact you.

Request a no-obligation callback

Register your interest or request a no-obligation call back from our team today by completing the short form below.

    Get in touch

    If you are unsure about 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.

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