Transferring and receiving levy funds

Levy-payers with unused funds can now transfer some, or all of, their levy pot to another England based company. The information below explains how the transfer can happen and how a non-levy paying company can receive these funds.

Levy Funding Transfer

UCEM information leaflets are available for download for both levy paying employers wishing to transfer apprenticeship funds; and employers wishing to receive transferred apprenticeship funds. UCEM is happy to help employers who are interested in transferring funds or receiving transferred funds to come together to explore potential transfer partnerships, without obligation, this is a free support service.

Getting started

To get started the transferring and receiving employer need to agree the scope of the transfer including, how many apprentices, the apprenticeship standard and the cost. Both employers must register on the Apprenticeship Service; once set up the Apprenticeship Service will help both employers to track and view the transferred funds.

After both employers have registered with the Apprenticeship Service:

  • Connect with each other on the apprenticeship service site – the receiving employer initiates this by issuing an ‘Account ID’ to the sending employer
  • The receiving employer adds the apprentice details – this can also be completed by UCEM
  • Both employers confirm the transfer
  • The funds will be paid monthly into the account and drawn down monthly by UCEM.

All employers must make sure that they are familiar with the Funding Rules relating to transferring funds.  For more information please visit Transferring unused apprenticeship funds to other employers.

Employers transferring funds out

Before making any transfer funds, key points to know are:

  • You must have enough funds to transfer to another employer
  • You must be able to cover the full duration of the apprenticeship (calculated forecast cost to you –
  • UCEM can assist with forecasting costs if required)
  • You will be funding 100% of the total apprenticeship cost
  • There must be a clear agreement with the receiving employer
  • You cannot transfer funds if you are currently receiving transferred funds
  • Transfer payments will leave your account on the first of each month
  • If the apprenticeship you are funding stops, the transferred payment will also stop (you cannot stop funds whilst the apprenticeship is still active)
  • You will be required to re-sign the employer’s apprenticeship agreement with the EFSA.

Employers receiving transferred funds

Before receiving any transferred funds, key points to know are:

  • You can only use the transferred funds for training and assessment of apprenticeship standards (not apprenticeship frameworks); and for new starters only
  • You will sign an agreement with the EFSA, this will happen when you set up your apprenticeship account
  • Transfers can fund up to the maximum funding band of the standard, any additional costs will require payment made directly to the training provider (e.g. UCEM)
  • If the apprenticeship stops the funding will also stop but you will not have to pay back any funds to the transferring employer
  • If the transferring employer runs out of funds you will have to make a 10% contribution the government will pay the remaining 90%
  • The employer who transfer funds to you cannot deliver any of the training for that funded apprenticeship.