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About the Levy Support Scheme

What is the apprenticeship levy?

The apprenticeship levy is an amount paid at a rate of 0.5% of an employer's annual pay bill. The money is stored in a fund which can only be used to pay towards apprenticeship training. The aim is to help companies offer more apprenticeships by using the money to develop apprenticeship programmes and increase training opportunities. The levy can be used for new recruits and existing staff.

The following organisations pay the apprenticeship levy:

  • Employers with a payroll of more than £3 million (the apprenticeship threshold).
  • Employers who are connected to any companies or charities for employment allowance purposes, and have a combined pay bill of more than £3 million.

What is a levy transfer?

Large employers who pay the apprenticeship levy can choose to transfer up to 50% of their annual levy funds to other businesses, to pay for their apprenticeship training and assessment. The donating organisation can choose which businesses and apprenticeships they support with the transfer.

Transferred levy funds can only be used for:

  • Apprenticeship training and assessment for the recognised apprenticeship standards.
  • A new apprentice start - this could be a new apprentice or an existing employee who begins a new apprenticeship with the same employer.
  • An apprentice who changes employer during their apprenticeship - the new employer may use levy funds to support the new apprentice.

A levy transfer can fund up to the maximum funding band of an apprenticeship standard. If the training cost is more, the receiving organisation will have to pay the difference to the training provider.

 

What are the benefits of levy transfers?

Gifting unspent levy funds to another business means they can hire more staff or train their workforce. 

This will:

  • Help the receiving organisation fund new apprenticeship opportunities.
  • Help the donating organisation demonstrate corporate social responsibility.
  • Enable organisations to utilise levy funds that would otherwise expire.
  • Help the local economy thrive.
  • Encourage circular economic benefits, stronger supply chain, and overall local networks.
  • Keep skills funding in the region.

Who can participate in a levy transfer?

Donate levy

Large employers who pay the apprenticeship levy can choose to transfer up to 50% of their annual levy funds to other businesses.

The transferred apprenticeship funding will be drawn from the donor's digital apprenticeship service account in monthly instalments over the duration of the supported apprenticeship programme.

Receive levy

Any business can receive a transfer of levy funds. This includes businesses that don't pay the apprenticeship levy and those that do but have already spent all of their levy on apprenticeships.

A levy transfer covers 100% of the apprenticeship training costs, funded by a levy-paying employer throughout the full programme, saving the recipient business the 5% co-investment fee. 

Levy transfers through the Levy Support Scheme are available for:

  • Businesses registered in Norfolk and Suffolk.

  • Confirmed/appointed apprentices.

  • Employers who pay into the apprenticeship levy, but have already spent all their levy funds.

  • Employers who do not pay into the apprenticeship levy and their apprentice is aged 22 or older.

If your business employs a new apprentice who is already midway through their course, you may be eligible for a levy transfer to cover the remaining training costs and ensure continuity in their apprenticeship. For more information, please email us at [email protected] or complete our online contact form.

How is the levy transfer processed?

The transfer is managed on the digital apprenticeship service. Both organisations will need to have an apprenticeship service account in order to donate and receive apprenticeship funding.

The donating and receiving organisations connect their apprenticeship service accounts to complete the levy transfer. The agreed apprenticeship funding amount will be drawn from the donor's account in monthly instalments for the full duration of the apprenticeship programme - just like any regular apprenticeship levy payments.

Levy-paying organisations follow these steps:

  1. Connect apprenticeship service accounts.
  2. Approve learner details.
  3. Stay up to date with the apprenticeship progression.

Levy-receiving organisations follow these steps: 

  1. Set up an apprenticeship service account.
  2. Connect apprenticeship service accounts.
  3. Add apprentice's details.
  4. Approve apprentice's details.
  5. Keep everybody updated.

We offer the Levy Support Scheme to guide both parties through this process.

What is the Levy Support Scheme?

We are here to support Norfolk and Suffolk businesses through the levy transfer process.

We strategically match up donating organisations with suitable receiving organisations, and guide both parties through the full process of completing the levy transfer.

Since April 2023, we have raised over £7.2m worth of levy funds and redistributed over £6.4m to local businesses. We work with over 40 local and national organisations who are sharing their levy funds through the Levy Support Scheme. 

Visit our case study library to hear from local organisations about how the scheme is benefitting them!

If you would like to take part, please complete the relevant form below and a member of our team will be in touch to offer further support:

Donate levy funds

Receive levy funds

Are there other levy transfer schemes?

There are levy transfer schemes in place across England. Here is a list of other available schemes:

Alternatively the Department for Education (DfE) offer a national levy transfer service to access levy transfers across England.

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