Greater flexibility for apprenticeship levy as transfers of employers digital account extended. The apprenticeship levy is giving employers a real opportunity to invest in high-quality training, helping to grow their business and get the skilled workforce they need to thrive and succeed. Currently, levy-paying employers can transfer up to 10% of their apprenticeship service funds to one other employer. Apprenticeships and Skills Minister Anne Milton announced at the AELP Annual Conference on the 26th June that large employers will soon be able to transfer up to 10% of their apprenticeship levy funds to multiple businesses. This presentation looks at the comments on the day and the implications for Apprenticeships. It also looks at the emergence of new standards and how they may impact on starts giving an example within the construction sector.

1. GREATER FLEXIBILITY FOR
APPRENTICESHIP LEVY
AS TRANSFERS OF EMPLOYERS DIGITAL ACCOUNT EXTENDED
July 18

2. The apprenticeship levy is giving employers a real
opportunity to invest in high-quality training,
helping to grow their business and get the skilled
workforce they need to thrive and succeed. Only
around 2% of employers pay the levy but that
investment has funded more than 40% of the
apprenticeships started in the last year.
Currently, levy-paying employers can transfer up to
10% of their apprenticeship service funds to one
other employer.

3. After listening to businesses, the Minister’s
announcement today goes further and provides even
greater flexibility for businesses, so that from July,
employers will be able to make transfers of up to 10%
to as many other employers as they choose.
Apprenticeships and Skills Minister Anne Milton
announced the move at the AELP Annual Conference
on the 26 June the event was attended by over 160
top businesses to celebrate apprenticeships and the
significant contribution they are making to their
businesses and the wider economy.

4. So what does this all mean
Large employers will soon be able to transfer up to 10% of their apprenticeship levy
funds to multiple businesses, helping to boost the number of high-quality
apprenticeships across the country.
It is intended that this move will lead to more quality apprenticeships being created
and will help employers to work together in partnership, supporting them to take
on apprentices who may not have done so otherwise.
This will allow employers to support skills development within their supply chain.

5. “It’s fantastic to see so many businesses taking
advantage of the opportunity that the apprentice levy
provides. As well as kick starting their apprenticeship
programmes, business is now recognising the benefits
an apprentice brings to the work place with
enthusiasm and new ideas.
We want to keep improving apprenticeships for
everyone and I am delighted that we are now
extending the flexibility of the apprenticeship levy. If
we look at what the Berkeley Group and Norfolk
County Council are doing, this is business and the
public sector using the apprenticeship programme to
change people’s lives.”
Apprenticeships and Skills Minister Anne Milton
commented that:

6. Comments
and Views

7. The Berkeley Group Executive Director Karl Whiteman
commented:
“The construction industry is at a crossroads with more people leaving than joining,
just as we need to build more homes. The Berkeley Group has always supported our
supply chain to recruit apprenticeships. Over the last 2 years, we have had more
than 850 apprentices on our sites and in our offices. We welcome the opportunity to
continue this not just in an advisory capacity but financially with the new changes
which allow us to share our levy with many more contractors.”

8. Norfolk County Council was the first organisation to make a
transfer of apprenticeship service funds. A spokesperson for the
council said:
“From the moment the levy was first announced, Norfolk County Council’s leadership team
wanted to ensure that some of our levy could be used to support Norfolk people who have
all the necessary skills and abilities to complete an apprenticeship successfully but have
barriers that sometimes prevent them from achieving successfully.
Working with TrAC, we have developed a pilot designed to help 30 young people to get and
achieve an apprenticeship and Norfolk County Council is transferring levy to TrAC to support
these apprentices.
All of these apprentices are referred by the council and will be employed by TrAC who will
place them with other host employers throughout their programme. Both the apprentice
and the host employer receive additional bespoke support throughout the programme.”

9. How will it work?
Employers who pay the apprenticeship levy and have unused apprenticeship funds
can find employers who want to receive a transfer in a number of ways, for
example:
• work with employers in thier supply chain
• get in touch with other employers in your industry
• get in touch with an Apprenticeship Training Agency (ATA)
• work with regional partners

10. What 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
• transfers can only be used for new starts

11. What employers need to do to start a transfer
The sending employer and the receiving employer need to first agree the details of
the transfer of funds; for example, which apprenticeship standard, how many
apprentices, the cost.
Once both employers are registered on the apprenticeship service the following
must be done in their accounts to complete a transfer:
• connect with each other
• receiving employer to add the apprentice details
• confirm the transfer

12. Employers who are transferring funds
Before employers make a transfer from their apprenticeship account, they need to make
sure that they:
• have enough funds to transfer to another employer
• have a clear understanding of the forecasted cost, which will cover the duration of the
apprenticeship they've agreed to fund through a transfer
• understand they will be funding the total cost of their apprenticeship and not just the
10% co-investment
• agree with the employer who is receiving the transfer, details of the apprenticeships
you’re funding
• are aware of the funding rules around transferring apprenticeship funds

13. Employers should also know:
They can’t transfer funds to another employer if you are receive a transfer from
another employer
if you’re currently transferring funds to another employer, you can’t receive
transferred funds to pay for your apprenticeships
transfer payments will leave their apprenticeship service account first, each month
if the apprenticeship stops, transferred payments will stop as well

14. Employers who want to receive a transfer
If employers want to receive a transfer from another employer they
must be aware of the following:
• they can only use the transferred funds for apprenticeship training and assessment
• transferred funds can only be used for apprenticeship standards
• they will need to create an account on the apprenticeship service to receive the transfer
and pay for apprenticeship training
• they will need to sign an agreement with the Education and Skills Funding Agency (ESFA)
• transfer payments will be made monthly from the sending employer to their
apprenticeship account

15. Employers who want to receive a transfer
• if the apprenticeship stops then the funding will stop too
• they won’t have to pay any funds back to the sending employer
• if the employer sending you funds runs out of funds, they must make a 10% contribution
to the cost of apprenticeship training and the government will pay the remaining 90%
(this is called co-investment)
• a transfer can fund up to the funding band maximum of a standard, if the cost of training
is more, they will have to pay the difference to the training provider
• if a training provider transfers funds to an employer, they cannot deliver the training for
that funded apprenticeship
• funding rules around transferring apprenticeship funds

16. State aid
• 10% of all the funds you receive as a transfer from another employer count as
state aid.
• You are not allowed to go over the limit of €200,000 for state aid in any 3 year
period.
This means if you had not already had state aid you could transfer upto €2,000,000
of levy
Please note all figures for state aid are given in Euros

17. New Standards
and their impact in the Construction industry

18. The announcement follows another significant boost to apprenticeships this week,
with new high-quality apprenticeship standards in bricklaying and plastering being
approved for delivery by the Institute for Apprenticeships. Around 4,000
apprentices are expected to enrol on the bricklayer apprenticeship every year and
up to 1,500 apprentices to undertake plastering each year.
The new standards were designed by employers and are backed by the Federation
of Master Builders. Construction is a growing and important sector and the new
standards will give apprentices the skills that the construction sector needs.

19. Brian Berry, Chief Executive of the Federation of Master
Builders (FMB), commented:
“These higher quality construction apprenticeships have the potential to help solve
the construction skills crisis. The bricklayer and plasterer apprenticeships were
designed by employers which will ensure they produce the tradespeople they need.
The apprenticeships are longer in duration and cover a broader range of knowledge
and hand-skills. This not only benefits the employers but also the apprentices who
will be arming themselves with a wider range of skills for their future careers.”

20. Sir Gerry Berragan, Chief Executive of the Institute for
Apprenticeships, commented:
“As sector specialists, the Bricklayer and Plasterer Apprenticeship Trailblazer Group
really understood employers’ needs, and they’ve worked hard to include the skills
and experience that would best serve both employers and apprentices in these
occupations for the future. Ultimately, these apprenticeships will produce well
trained, skilled employees who can add significant value and help their
organisations thrive.”

21. In Summary
Increased flexibility for employers to better
utilise their Levy Pot to drive up skill,
productivity and quality within their supply
chains.
New Standards are being developed with
employers ensuring that they drive the skills
and experience that would best serve both
employers and apprentices.
This is clearly good news for the sector,
employers and those within their supply chains.