Large employers will be able to transfer 10 per cent of their apprenticeship service funds to multiple businesses, the government has announced. Policymakers hope this will help boost the number of apprenticeships.
Levy-paying employers can currently already transfer up to 10 per cent of their apprenticeship service funds – but to only one other employer. Skills minister Anne Milton will today announce a move to greater flexibility, which will mean that from July, up to 10 per cent of their funds can be transferred to as many other employers as they choose.
Ms Milton will make the announcement at an event with over 160 employers. According to the government, only around 2 per cent of employers pay the levy but that investment has funded more than 40 per cent of the apprenticeships started in the last year.
Recognising the benefits
Ms Milton said: "It's fantastic to see so many businesses taking advantage of the opportunity that the apprentice levy provides. As well as kick starting their apprenticeship programmes, business is now recognising the benefits an apprentice brings to the work place with enthusiasm and new ideas.
“We want to keep improving apprenticeships for everyone and I am delighted that we are now extending the flexibility of the apprenticeship levy. If we look at what the Berkeley Group and Norfolk County Council are doing, this is business and the public sector using the apprenticeship programme to change people's lives."
Norfolk County Council was the first organisation to make a transfer of apprenticeship service funds.