From this month, levy-paying businesses will be able to make transfers to as many other organisations (including Apprenticeship Training Agencies like us!) as they wish to. This replaces the previous rules which allowed transfers to only one other organisation.
Quick reminder on how it works:
1. An employer can transfer funds to any other organisation (including other levy payers)
2. An organisation cannot be both the provider and recipient of a transfer.
3. Up to 10% of a firm's levy pot can be transferred
4. Transfers can only be used to pay for apprenticeship training and assessment. It cannot be used to cover wages, equipment etc.
5. Transfers can only cover costs of apprenticeship Standards. Framework costs cannot be covered.
The transfer of levy funds is still a new flexibility with it being the latest in a long line of changes to apprenticeships so we expect it will be some time before the benefits - and one hopes, further flexibilities - are realised.
For more information and advice on the transfer of apprenticeship levy funds, please see here or contact us with your questions!