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Apprenticeships are funded via the Apprenticeship Levy. The amount of funding available depends on whether you are or aren't a levy paying employer.

What does it mean to be a levy paying or a non-levy paying employer?

Levy paying employers

If you’re a UK employer with an annual payroll of more than £3 million, you must pay the apprenticeship levy which can only be used for the training and assessment of apprentices in your organisation. You can also choose to transfer up to 50% of your unused levy funds to a business of your choice.  

You’ll fund your apprenticeship through a digital levy account to which Government adds 10%. If the cost exceeds the credit in your account, the Government will contribute 95% of these extra costs.

If you don't use all/some of your levy funding and/or don't gift it to a non-levy paying organisation, the government will reclaim the unused amount after 24 months. 

Non-levy paying employers

Non-levy paying employers are subject to a 5% fee for the cost of an apprenticeship and the Government will pay the remaining 95% cost towards the learning provider.

However, it’s possible for a non-levy paying organisation to apply for a transfer of unused apprenticeship levy funds from a levy paying employer, which means that the apprenticeship costs can also be 100% covered for non-payers. This process is called a levy transfer.

Most Primary Care Employers and some Adult Social Care will be non-levy paying organisations. Please see further details and how you can apply for a levy transfer below.

NB From 1st April 2024, non-levy paying employers looking to train 16-21-year-old employees via the apprenticeship route, no longer have to contribute to or arrange a levy transfer to fund the training – the government is fully funding the training costs for these individuals.


Levy Transfer

What is a levy transfer?

A levy-paying employer can choose to donate up to 50% of their apprenticeship levy fund to any other employer who can then use it to fund learning and assessment of their own apprentices. It's a way for large employers to help smaller organisations and close the skills gaps in sectors and locations they want to support - creating more job and career development opportunities across England.

Most primary and many social care employers will be non-levy payers but can receive a levy transfer from secondary care trusts or other levy paying employers. 

Please see the process below on how to access levy funding and to understand how the NCL Training Hub can help facilitate this.

If you are an organisation hoping to benefit from a levy transfer please read the Apprenticeship Funding Rules for Employers guidance below.

Watch The Education and Skills Funding Agency video to find out about the apprenticeship levy transfer, providing information for organisations wanting to transfer their levy or organisations looking to receive transferred levy funds.

The NCL Training Hub can support in brokering a levy transfers for non-levy paying primary and adult social care employers in NCL – helping ensure that all apprenticeships across primary/adult social care are fully funded and require no financial contribution from individual employers.

The NCL Training Hub can support primary and social care organisations with workforce planning and identifying where apprenticeships can support resolving skills gaps within the workforce by providing an opportunity to upskill existing staff members or by recruiting staff externally.

To request support or further information about apprenticeships from the NCL TH Apprenticeships Team, please complete the form below.


Levy Transfer Step by Step Process

We've included a step-by-step process of the levy transfer below however the NCL TH Apprenticeship team can also support and guide employers through the process.

If you are an employer and would like to request a levy transfer please complete the form below - please only complete the form if you are at the stage to receive a levy transfer i.e. you have identified the apprenticeship standard, apprentice, training provider etc.

Step by Step Process
Set up a Digital Apprenticeship Service (AS) Account

Step 1:Set up a Apprenticeship Service (AS) Account

Please visit the GOV UK website to set up your apprenticeship service account here.

Please see guidance on how to set up a AS account via the below document or YouTube Video.

Complete the levy transfer request form

Step 2: Complete the levy transfer request form with the NCL Training Hub

This step gathers all the required information required in order to link the receiving employer with a transferring organisation.

Receiving Employer - the non levy paying employer/organisation who is requesting and receiving the levy transfer

Transferring Employer - the levy paying employer/organisation who is sending and gifting their levy

Connection to the Transferring Employer

Step 3: Connection to the Transferring Employer

The NHSE London Apprenticeship Lead will send an introduction email to the receiving employer and the transferring employer.

The transferring employer will send a connection to your AS account

Accept the transfer connection & add your apprentice/s onto your account

Step 4: Accept the transfer connection & add your apprentice/s onto your account

Upon receiving the transfer connection on your AS account accept this.

The next step is to add your apprentice/s onto your AS account and register your chosen training provider details.

You will be required to add the following details:

  • Training Provider , Training Providers UKPRN Number, Name of apprenticeship course, cost of course (£), start date, end date

  • Important note – when asked ‘Do you want to reserve funding now?’ Please select ‘No’ (This will ensure you are applying for a levy transfer otherwise you are at risk of being charged)

Please see a guidance video on YouTube below. Upon successful accepting the transfer connection and adding your apprentice onto your account, this will be sent to your chosen training provider.

Training Provider reviews and approves 

Step 5: Training Provider reviews and approves 

The Training Provider must review and approve the request – you may want to email the relevant contact at the training provider to make them aware of the request and confirmation of their approval.

Final approval by the transferring and receiving employers

Step 6: Final approval by the transferring and receiving employers

Once your chosen training provider has approved – a final approval request is sent to the transferring AND receiving employer.

Both employers must approve the request.

Completion of the levy transfer process

Step 7: Completion of the levy transfer process - payments commence on a monthly basis

Upon completion of all the previous steps , the levy transfer process is complete and the monthly payments will commence.

Please note this is automatic – the receiving employer will not receive funds into their bank account – it goes automatically through the system to the training provider.


Useful resources:


Get in touch

If you have any further queries please email please get in touch with the NCL Training Hub Apprenticeship Team.