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Apprenticeship levy transfer

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 us 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’) we 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 us 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 (such as 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.