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Transferring levy funds to other employers

Employers that pay the apprenticeship levy have the option to fund an apprentice in another organisation.

This means that levy-paying employers can work with another employer to help them take on apprentices, increasing the skills base in their supply chain, sector, charity or local area. The choice is up to you.

Employers can transfer a maximum of 50% of annual funds. This is worked out from the total amount of levy declared, with the English % applied, plus the 10% government top-up payment. 

These funds will be used to pay for the training and assessment cost of the apprenticeships agreed with the receiving employer and will be paid monthly for the duration of the apprenticeship.

Only levy-paying employers can make a transfer. Any levy or non-levy paying employer can receive and use transferred funds, but they have to be registered on the apprenticeship service. A transfer can only be used to pay for training and assessment for apprenticeship standards. 

 The Government has supplied a simple film to support you with the transfer process:

For further information on the transfer process visit:

What is my level of commitment when I transfer levy funds?

A transfer of levy funds is not a one-off payment. By agreeing to transfer levy funds to another business, you are committing to pay for a specific apprenticeship over the course of its duration until the apprenticeship has been completed.

As all apprenticeships are a minimum of 12 months and they may start at any point in the year, you’ll be agreeing to transfer funds over multiple financial years.

When agreeing to make a levy transfer, you should think about the amount of levy funds you expect to have available in your account over the course of future financial years.

You should also consider that by agreeing to support an apprenticeship this may be over multiple funding years.

Read our handy guide to levy transfers.

Making payments on a monthly basis

The levy funds for a transfer will leave your apprenticeship service account on a monthly basis. The funds for your transfer commitments will be prioritised over payments for your own apprentices, so will leave your account first each month.

The duration of an apprenticeship may vary from the estimated number of months advised by the training provider at the start of training and could include breaks in learning, for example if the apprentice needs to go on extended leave.

Delays in start dates or breaks in learning will affect the spending profile of the monthly payments leaving your account.

What am I responsible for when I transfer levy funds?

When you transfer levy funds, you are only responsible for paying for the cost of apprenticeship training and assessment until completion.

You are not liable for any other aspect of the apprenticeship such as the apprentice’s wages or their employment. This is the responsibility of the business receiving the transfer funding.

The business receiving the transfer of funds is bound by the apprenticeship funding rules for how they use the transfer funds and how they employ their apprentice.

How can I transfer levy funds?

If you pay the apprenticeship levy you can transfer your levy funds using your apprenticeship service account.

There are 2 ways of making a transfer:

  • Pledge and transfer your levy funds so other businesses can apply to you for funding
  • Make a transfer to a business you know by inviting them to make a connection.

Pooling funds in an apprenticeship service account with other employers in a group structure

If you are in a group of companies connected for the purposes of paying the levy, your group is able to collect funds together into one account. Your group can do this by registering to have PAYE schemes attached to a single account.

The government says ‘you will be free to co-ordinate your spending at local or sector level outside the service’ – this simply means that you can spend your own non-levy cash as you wish.

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