Apprenticeship levy funds transfer limit rises to 25%
The amount of apprenticeship levy funds that can be transferred to support apprenticeships at other employers has increased.
From April 2019, the funds that levy-paying employers can transfer to support apprenticeships offered by smaller employers rose from 10% to 25%.
Subject to the scheme's rules, levy-payers can move funds to any employer, including those in their local area, sector or supply chain, and charities.
The increase presents an opportunity for larger, levy-paying organisations to support new apprenticeship schemes, or upskill an existing workforce, among smaller employers.
Levy-paying employers who wish to transfer funds will have to agree with the employer receiving the funds the individual apprenticeships that will be funded by a transfer.
Employers receiving transferred funds will only be able to use them to pay for training and assessment for apprenticeship standards.
The apprenticeship levy was introduced in April 2017.
It requires employers with annual payrolls of more than £3 million to allocate a sum equivalent to 0.5% of their wage bill to fund work-based training schemes.
Anne Milton, Education Minister, said:
"The levy means there is more money available than ever before for apprenticeship training and allows employers to choose which apprenticeships they offer, how many and when.
"In 2019/20, the funding available for investment in apprenticeships in England will have risen to over £2.5 billion, double what was spent in 2010/11 in cash terms."
Talk to us about the apprenticeship levy.