Funding· 7 min read

Levy transfer: funding apprenticeships with someone else's levy

Levy-paying employers can transfer a portion of their unspent levy funds to other employers. For schools, small trusts and settings that do not pay the levy themselves, a transfer can mean an apprenticeship is funded in full with no co-investment to find. It is one of the most underused routes in education funding, largely because few people know it exists.

Two trust finance leaders reviewing apprenticeship budget documents in a school office

How it works

An employer who pays the apprenticeship levy can pledge a share of their annual levy funds to another employer. The receiving employer uses those funds to pay for apprenticeship training and assessment. The transfer covers the training costs for the full duration of the apprenticeship once it is agreed, so it is a commitment rather than a one-off contribution.

Who can send and who can receive

Senders are levy-paying employers, including large trusts, local authorities, universities and businesses outside education.

Receivers can be any employer, whether or not they pay the levy, including single schools and small multi-academy trusts.

Many combined authorities and large employers publish public pledges that smaller organisations can apply to.

Transfers are arranged through the apprenticeship service, so both parties need an account.

Why it matters for education settings

A non-levy employer normally contributes a small percentage of training costs as co-investment. A transfer removes that contribution entirely for the apprenticeships it covers. For a school funding a teaching assistant or a leadership apprenticeship out of an already stretched budget, that is the difference between a plan on paper and a colleague actually starting.

Steps to secure a transfer

Set up or log into your apprenticeship service account.

Decide which roles you want to fund and how many, so you can describe the ask precisely.

Search published transfer pledges, including those from local combined authorities and large regional employers.

Apply with a short, specific case: the standard, the number of apprentices, the setting and the impact on learners.

Once a pledge is accepted, add the apprentices in the service and confirm NCE as your training provider.

"The trusts that succeed with transfers are the ones who ask precisely. A clear request for two named standards beats a general enquiry every time."

Points to watch

A pledge is not confirmed funding until it has been accepted, so do not make an offer of employment dependent on it before then.

Transfers cover training and assessment costs, not salary. Salary and any incentive payments sit separately.

Apply early. Pledges are often oversubscribed and many operate on a first come basis.

If a transfer is not secured, co-investment is usually a smaller sum than leaders expect. Our funding guides set out the current rates.

How NCE helps

We help you identify which of your vacancies and existing staff could be funded through a transfer, draft the request, and manage the provider side of the apprenticeship service once a pledge is accepted. If you would like us to look at your workforce plan and identify the transfer opportunities in it, get in touch and we will do that at no cost.

Ready to plan your next cohort?

Talk to the NCE employer team.

Whether you are shaping a business case, comparing providers or planning a trust-wide programme, we will help you get from question to confident decision.

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Levy transfer: funding apprenticeships with someone else's levy

How it works

Who can send and who can receive

Why it matters for education settings

Steps to secure a transfer

Points to watch

How NCE helps

Talk to the NCE employer team.

Keep reading

Our free recruitment service for education employers

Government incentives for employers hiring an apprentice

The employer handbook for NCE apprenticeships

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