Transfers of apprenticeship service funds

Thursday, August 30, 2018 - 12:17

Common myths about transferring apprenticeship service funds

1) “You can only make a transfer of apprenticeship service funds to an employer in your supply chain”

FACT: You can make a transfer of apprenticeship service funds to any employer of your choice.

2) “You can fund any apprenticeship with a transfer”

FACT: You can only fund apprenticeship standards with a transfer, not apprenticeship frameworks. Employers are designing new high quality standards to replace frameworks to ensure apprenticeships are more responsive to employers’ needs.

3) “If an employer makes a transfer to another employer, then they won’t know what they will spend it on”

FACT: The employer sending the transfer has to give final approval to the apprenticeship(s) being funded in the apprenticeship service, after the receiving employer and training provider have agreed all of the details.

4) “Can I transfer 10% of my apprenticeship service funds to a charity as a gift?”

FACT: Transfers can only be made to pay for an apprenticeship in another organisation. You can transfer funds to a charity to pay for an apprentice. The transferred money can be used only to pay the training and assessment costs of an apprentice.

5) “Training providers can transfer apprenticeship service funds and deliver the training”

FACT: Training providers can make transfers, but they cannot then provide the training for that funding, either as the provider or as a subcontractor.

6) “You can only fund one apprentice at a time with a transfer and you can only make one transfer transaction”

FACT: As a temporary measure when transfers were first introduced, you were only able to make a transfer to one employer (which could have funded as many apprenticeships as you chose, up to your 10% maximum allowance).

From July 2018, you can transfer to any number of employers, for any number of apprenticeships with each, up to the maximum of your 10% allowance.

7) “If my 10% transfer is less than the cost of the apprenticeship standard, can I still transfer my funds to pay for that apprenticeship? For example, if I can transfer £10,000 but the apprenticeship standard I want to fund costs £27,000”

FACT: Before setting up a transfer you need to ensure that your annual 10% transfer allowance is sufficient to cover the annual cost of an apprenticeship standard.

When setting up a transfer you agree to cover the full cost of training and assessment up to the funding band maximum for that apprenticeship.

You can use the National Apprenticeship Service’s ‘Estimate my apprenticeship funding’ tool, which will tell you whether you can afford a particular apprenticeship standard from within your allowance. You can access the tool from the ‘Transfers’ section of your accounts. For more information you can go here.

8) “I want some of my unspent levy funds to be used to help others by aggregating some of my funds with theirs, but I can’t do that”

FACT: We do that for you by reallocating unspent funds to other apprentices. There are also other ways that you can support other employers of your choice directly.

You can transfer up to 10% of the funds in your apprenticeship service account to other employers of your choice directly (such as in your supply chain), and you can work with others to agree how best to support your supply chains in this way.

You can use an existing body, such as a LEP, regional hub or sector body, or set up a new one to coordinate or manage transfers activity.

You can loan or second an apprentice you employ to another employer for the work based part of their apprenticeship.

 

You can find more details of the policy on transferring apprenticeship service funds here: gov.uk/guidance/transferring-apprenticeship-service-funds

Information taken from the Employer Guide to Apprenticeships

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