Question to the Department for Education:

To ask His Majesty's Government how many small and medium-sized enterprises have received funds for apprenticeship training as a result of levy-paying businesses using their apprenticeship service account to transfer unused levy funds in (1) 2020–21, (2) 2021–22, and (3) 2022–23.

Transfers are a great way for large employers to use their levy funds to support apprenticeships in other businesses, including small and medium sized enterprises (SMEs), flexi-job apprenticeship agencies and charities, to help meet local or sector specific needs.

As announced this week, from April the department are increasing the proportion of their funds that levy-paying employers can transfer to support more apprenticeships in other businesses, including those in their local area or supply chain, from 25% to 50%. This will help SMEs hire more apprentices by reducing their costs and enabling them to benefit from the support and experience that larger employers can provide.

Hundreds of large levy-paying employers have already taken advantage of the opportunity to transfer their unused levy funds to other businesses. Since September 2021, over 550 employers including ASDA, HomeServe, and BT Group, have pledged to transfer over £37 million to support apprenticeships in businesses of all sizes.

​The below table shows the number of non-levy paying employers that have received levy transfer funding and the value of that funding. It is extremely encouraging that use of transfers continues to increase year-on-year. The department does not hold transfer data specific to SMEs (currently defined as businesses with fewer than 250 employees) but can confirm that most non-levy paying employers are SMEs.

To note: Values include new apprenticeship starts and those who started in previous years but are still being funded. If an employer receives a transfer for an apprenticeship which continues across more than one financial year, they will appear in each year’s employer count. Values are actual payments made to date - they do not represent the total committed cost of transfers into future months and years.