Apprenticeship Levy Transfer: How SMEs Can Benefit

Large employers pay into the Apprenticeship Levy whether they use it or not. Many don't spend it all.

That unused money doesn't have to go to waste. Through an apprenticeship levy transfer, it can fund training for another business entirely, often an SME just like yours.

If you've never heard of this route, you're missing out on one of the most generous funding options available.

What Is an Apprenticeship Levy Transfer?

Levy-paying employers can transfer up to 50% of their unused annual levy funds to another business. This has been the case since April 2024, when the allowance rose from 25%.

The receiving employer gets their apprenticeship training and assessment costs covered in full, up to the funding band maximum. No 5% contribution. No cost at all.

Transfers happen through the Apprenticeship Service account, either via:

• A direct agreement between two businesses

• A public pledge, where a large employer offers funds to any eligible recipient

Why Would a Large Employer Transfer Their Funds?

It's a fair question. The honest answer is that unused funds expire, so businesses would rather see them put to good use.

From April 2026, unused funds expire after 12 months rather than 24, so large employers have even more reason to transfer rather than let money lapse.

Many choose to support their supply chain, local SMEs, or specific sectors and regions they care about. It's a chance to create real opportunity beyond their own walls.

A levy transfer turns unused funding into someone else's fully funded apprenticeship. That's a genuine win for both sides.

Who Can Receive a Transfer?

Almost any employer with an apprenticeship service account, including:

• SMEs across any sector

• Charities and voluntary organisations

• Schools, care providers, and local partners

If you're a non-levy employer already exploring apprenticeship funding options, a transfer could mean paying nothing at all for training that would otherwise cost you 5%.

How to Access a Levy Transfer

Getting started doesn't need to be complicated. In practice, it usually means:

1. Confirming you have an active Apprenticeship Service account

2. Connecting with a levy-paying employer offering a transfer or pledge

3. Agreeing the apprenticeship standard, cost, and duration together

This is exactly where a training provider earns its keep. We help employers navigate the process, find potential transfer partners, and avoid the admin headaches.

According to government guidance, transfer allowances are recalculated every tax year, so timing matters if you want to make the most of what's available.

Let's Find Your Funding Route

Whether that's a transfer, standard co-investment, or full funding for a younger apprentice, there's likely a route that works for your business.

You shouldn't need to be a funding expert to build a great team. That's our job.

Speak to a member of our team today, and we'll help you find the most cost-effective way to bring apprenticeship training into your business.

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