The government has set out how employers who pay the apprenticeship levy will be able to transfer their funds to other organisations from April for the first time. Large employers have been paying the levy since last April, but they have only been able to spend the funding generated on their own apprenticeship training so far.
New guidance published on gov.uk explains how this will change: there are “no restrictions about who you can transfer funds to”, except that “they have to be registered on the apprenticeship service”.
The Education and Skills Funding Agency also advised those transferring the funds to be aware of “the funding rules around transferring apprenticeship funds, which will be published at a later date”.
Once a transfer is made, it can’t be refunded “to the sending employer”.
The intention to allow levy payers to transfer funds was announced in the Department for Education’s apprenticeship funding policy guide in October 2016, and later featured in the Conservatives’ general election manifesto.
Full details of how the government see this working can be found here: Transferring Levy funds to another organisation