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Apprenticeships

Apprenticeship Levy Transfer

Transferring apprenticeship levy funds to other employers

The apprenticeship levy is already giving employers like Devon County Council a real opportunity to invest in high-quality training, helping to grow our business and get the skilled workforce we need to thrive and succeed. Through the apprenticeship levy transfer arrangements we can work in partnership with other employers, supporting them to take on new apprentices and to develop existing employees, by funding apprenticeship training and assessment.

We would like to utilise apprenticeship levy transfer arrangements to help the council to meet its strategic priorities including:

  • supporting local employers to boost local skills, build sustainability within the local workforce and improve economic growth
  • helping to widen the supply of apprenticeship training provision, particularly in areas of need and where there are gaps in provision
  • directing levy funds to meet local need and reduce the risk of losing some of the council’s levy funds to the government
  • demonstrating that the council is taking an active role as a local authority and community lead in skills growth and the use of apprenticeships to support this

There is no age limit on undertaking an apprenticeship qualification! But the employer and employee do need to meet the eligibility criteria.

Who can receive transferred funds?/Eligibility criteria

The Council recognises that there are potentially many local organisations in our supply chain who will want to work with the Council to receive transferred levy funds to build workforce capability and fund apprenticeship training and assessment. In line with the Government’s  funding rules (see section on ‘Apprenticeships funded by transfer of levy funds’) the Council can only transfer up to a maximum of 25% of its levy funds per annum and has decided to therefore prioritise the transfer of funds as follows:

  • to support organisations that deliver services to the most vulnerable in society and where evidence shows that there is the most need to build workforce capability. These organisations include adult care providers and residential providers for Children’s Services
  • to prioritise requests from the organisations stated above where those organisations are also committed to work with the Council to offer apprenticeship placement opportunities for particular societal groups such as people with learning disabilities and care experienced young people
  • to prioritise requests from particular geographical areas, where evidence shows that there is the most need to build workforce capability
  • to give priority to non-Levy paying employers in the first instance

The funding rules also state that:

  • you will need to have signed the ESFA Apprenticeship Agreement for Employers and set up an account before transfers are made (see notes under Digital Apprenticeship Service Information section below)
  • you will be responsible for selecting and contracting with the training provider
  • a transfer can only be used to pay for training and assessment for apprenticeship standards. We will fund 100% of those costs

Transferred funds can be used for the training and assessment of new apprentices and existing employees undertaking apprenticeships. We cannot transfer funds for apprenticeships that have already started where an agreement with a learning provider is already in place. The only exception to this is where the apprentice is changing employer and an agreement to continue their apprenticeship with their new employer is via a transfer of levy funds – this must be agreed by the point the apprentice starts with their new employer

The receiving employer will be solely responsible and liable for the transfer funded apprenticeship and for ensuring that the apprentice complies with the requirements of the apprenticeship, including the need to ensure that 20% of their work time is spent on the training. Once the transfer of levy funds has been processed, the responsibility and liability of the transfer funded apprenticeship lies solely with the receiving employer. The sending employer (i.e Devon County Council) has no accountability for that apprenticeship going forward, apart from the commitment to fund the apprenticeship over its entire duration until completion.

To use funds in the employer’s apprenticeship service account or government employer co-investment, the individual must have a valid and eligible residency status.

The Transferred Funds are subject to State Aid regulations and you will need to confirm that receipt of the Transferred Funds will not exceed your permitted allowance of State Aid over any three consecutive financial years (please see funding rules for further clarification).

Incentive payments for hiring a new apprentice (New COVID-19 support)

For further information on employing apprentices, including the new COVID-19 incentive payments, please see the guidance notes on the gov.uk website and the Government’s funding rules.

Choosing your training provider

We do not have any influence on which provider you decide to work with. They should however be registered on the Register of Apprenticeship Training Providers (RoATP).

Apprenticeships are not just for young people

The Government has made significant changes to apprenticeship qualifications. Although there are still a lot of opportunities for young people, like school leavers, there are also opportunities for people at a later stage in their careers to undertake apprenticeship qualifications. It is also possible to use apprenticeship qualifications for existing staff in a range of occupational areas.

During the apprenticeship and what is involved

There will be regular liaison between the apprentice, their manager and the training provider whilst the employee undertakes the apprenticeship. This will help ensure they remain on track and can deal with any queries or issues at a local level. We may also contact the employer periodically to discuss progress and how the apprenticeship is supporting workforce capability within your sector.

Apprentices need to spend 20% of their work time on the apprenticeship qualification. The 20% requirement is set down by the Government in its Levy funding rules which employers and training providers need to comply with. How this works in practice is very much dependent upon the qualification and the nature of the training provision – it could include time on the training provider premises, undertaking e-learning or other distance learning, compiling a portfolio, doing research, job shadowing or working on assignments – this will all need to be recorded. Even with the same qualification, each training provider might interpret the 20% slightly differently. Please talk to your preferred training provider(s) about how the 20% requirement works in practice, so that you are clear about this before you confirm the arrangements.

Costs of training

The cost of the training and assessment is funded from the Council’s Apprenticeship Levy Transfer scheme and therefore there is no cost to the employee or organisation. However, the Levy transfer cannot fund any salary costs, cover, backfill or other additional staffing costs, including travel expenses to training, and in some cases training providers charge for additional non-apprenticeship items. For these additional costs there are no separate Council funds available so if there was a need to consider it, it would have to be picked up by your own organisation’s budget.

Application process

Decide which apprenticeship standard you wish to undertake and discuss this with the training provider(s) who offer this to find out more. There are many varied apprenticeship ‘standards’ (qualifications) available find out more here:  Institute for apprenticeships  and find training providers here.

We strongly recommend that individuals and their line managers are involved in those discussions. View our privacy notice here in relation to how we process the information given in the application.

Read the information on these pages and in the funding rules. You should also look at the general guidance that can be found at gov.uk .

Please note this application form must be completed in one sitting and cannot be saved/returned to. You will need the following information in order to complete this process so please make sure that you have all the necessary details before commencing the application. You can complete the form for more than one employee at a time but please make it clear which apprenticeship is for which employee or you can complete one form for each person.

You will need this information:

  • company details (including company registered number)
  • apprenticeship details (standard/level/planned start and end dates/cost)
  • training provider details
  • employee details (person wishing to undertake apprenticeship)
  • information in support of application (typed paragraphs stating ‘how the qualification is relevant/ how will this provide significant new learning/meet learning needs)

1. If you would like to apply, please complete the Apprenticeship Levy Transfer funds application form ensuring that the CEO of the organisation has approved your request. Once you have submitted your form this will be sent direct to the apprenticeship mailbox and you will receive a reply in due course. For any questions, please email: humnres.apprenticeships-mailbox@devon.gov.uk

2.  Your application will be considered by the service area most relevant to your sector and application. The service area commissioner will then in due course contact you to advise if your application has been approved or not and to make the detailed arrangements.

3. You will then liaise with your chosen training provider to make the arrangements (the individual and their line manager should also be involved at this stage). You should make the training provider aware that you are sourcing Levy transfer funds to pay for the training and assessment.

4. Once your application has been approved, you will be required to read the Contract Terms and Conditions (add link to pdf document)  which will apply to the Levy Transfer and remain in place for the duration of the apprenticeship. You are also required to complete, sign and return a scanned copy of Schedule 1.

(Please note that the above document was designed for printing purposes only, and with that in mind will not be fully accessible to someone using assistive technology such as a screen reader).

Email: humnres.apprenticeships-mailbox@devon.gov.uk to confirm your agreement to the contract terms and conditions. No levy transfer can take place until we are in receipt of this signed document.

5. Your organisation will need to set up an account on the Digital Apprenticeship Service (DAS).

6. If any of the circumstances with regard to the agreed apprenticeships change you will be required to inform DCC as soon as possible, so that if necessary, any levy transfer payments can be paused or ceased.

Digital Apprenticeship Service (DAS) Information

In order to make this transfer of funds, the receiving employer will need to set up an account on the Government’s  Digital Apprenticeship Service (DAS) if you do not already have one.

You will need to enter details of the apprenticeship that the transferred funds relate to. If you are not a levy-paying employer then you can only use this account for apprentices funded through transferred funds or via reserved funds. If any apprentices which are not funded through transfers or reserved funds are entered then you will not receive payment through the apprenticeship service.

If you already have an apprenticeship service account, you may use this to receive a transfer.

Before entering the details on your apprenticeship service account, you must:

  • agree with the sending employer and the main provider which apprenticeship standard your apprentice will be undertaking; and
  • confirm the price that you have negotiated with your main provider. All parties will need to approve these details through the apprenticeship service

A flowchart showing the process can be found below, or more detailed guidance can be found at gov.uk.

Transfers how it will work flowchart diagram

Useful links

Under the ‘How to start a transfer section’ on the gov.uk website there is a further link that provides clear information on how to register on the Digital Apprenticeship Service (DAS), also detailing what information and documents you will need before you start this process.

Videos

You may also need to liaise with your training provider to assist with this and advise you of certain details.