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10 per cent levy transfer guidance

New guidance from DfE confirms that from April 2018 levy-paying employers will be able to transfer up to 10 per cent of the annual value of funds entering their apprenticeship service account. Our reading of the guidance suggests three key points of interest for HE providers:

  • First, levy payers can transfer up to 10 per cent to any employer, including smaller employers in their supply chain and apprenticeship training agencies. Employers will need to be aware of ‘state aid’ rules when receiving funds from other organisations.
  • Second, the receiving employer can select any training provider on the Register of Apprenticeship Training Providers, and to do so it will need to register on the Digital Apprenticeship Service (DAS). The selected training provider does not need to hold a non-levy allocation from ESFA. This transaction happens through the DAS and not through the ESFA contracting model.
  • Third, employers receiving transferred funds will only be able to use them to pay for training and assessment for apprenticeship standards; employers will not be able to use transferred funds to pay for training for apprenticeship frameworks.

Read DfE’s guidance on levy fund transfers

Introduction to degree apprenticeships

The Government aims to increase the number of people starting apprenticeships to 3 million by 2020. We are working to support the sector to develop and deliver new degree apprenticeships from September 2017.

Our work in this area includes:

  • funding institutions to develop degree apprenticeships
  • funding the Universities Vocational Award Council to provide information, guidance and support to institutions interested in providing degree apprenticeships
  • engaging with relevant stakeholders at a strategic level to confirm quality arrangements, address information gaps, and inform the development of the Institute for Apprenticeships.

What are degree apprenticeships?

A degree apprenticeship is a job where the employee receives a degree during the course of their work. Apprentices work a minimum of 30 hours a week for their employer. Learning fits around that work commitment and requires flexible learning modes such as day or block release, distance or blended learning.

The Government is currently developing the Digital Apprenticeship Service, which will be a digital portal allowing employers, training providers and aspiring apprentices to manage their apprenticeships.

Below, HEFCE’s Head of Skills, Nicola Turner, explains some of the opportunities for both apprentices and employers offered by degree apprenticeships.

How are degree apprenticeships funded?

Funding for apprenticeships is now generated through the apprenticeship levy, which was introduced in May 2017. 

The levy is a 0.5 per cent tax on the wage bill of employers whose salary costs are £3 million or more each year. It should generate approximately £3 billion a year which can only be spent on approved apprenticeships. 

Read guidance on how the levy operates

For more information on any of the above, please email


Page last updated 15 December 2017

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