Use or lose it: Two years on since the introduction of the Apprenticeship Levy

Information for employers

The 6 April 2019 will mark the two year anniversary since the introduction of the Apprenticeship Levy, and the start of the government’s ‘claw back’ of any unspent monies from April 2017.

But it isn’t too late for levy paying employers to take action, by choosing to use their levy funds.

Option One: Use it to train your own staff

Levy paying employers can use the funds in their Digital Apprenticeship Service (DAS) account to pay for apprenticeship training for their own team. Apprenticeships are a great way to up-skill existing and train new colleagues, and what’s more, they are available to anyone aged 16 or over (who meet the eligibility criteria).

Apprenticeships can be used to train staff from entry to higher level, and they are available in sectors such as management, learning and development, childcare, dental nursing, business administration, facilities management, engineering and manufacturing and much more.

How are these funds accessed?

Levy paying employers will manage their funds using their Digital Apprenticeship Service Account. As an approved training provider, we can upload cohorts for our employers to save them vital time, then all they need to do is accept these and we can get started with enrolling their staff.

What happens if I use all my funds?

In this instance, the levy employer would pay the co-investment fee that month for their apprenticeship training.

Option Two: 'Gift' it to another company or charity

Last year the government gave levy paying employers the opportunity to ‘gift’ up to 10% of their annual total levy value to a business or charity. The aim of this was to give more businesses the opportunity to train their teams using apprenticeships.

How would this work?

The sending employer and the receiving employer need to first agree the details of the transfer of funds; for example, which apprenticeship standard, how many apprentices and the cost.

Once both employers are registered on the Digital Apprenticeship Service, the following must be done in their accounts to complete a transfer;

  • Connect with each other
  • Receiving employer to add the apprentice details
  • Confirm the transfer.

It is important that prior to transferring any funds, the levy paying employer is aware of the forecasted cost, which will cover the duration of the apprenticeship that they’ve agreed to fund through a transfer, however our team can help employers to understand this fully.

Next steps

Our team are on hand to offer you free and impartial advice relating to your levy funds and how you may wish to utilise these. Similarly if you are a none levy paying employer who would like to benefit from receiving funds from a levy paying employer, contact us to register your interest and discuss next steps.