Vicky Day

Change of employer

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I have a learner who was funded by Levy transfer. They have now left this employer and are with a non-levy employer, and are continuing their apprenticeship. Is the new non-levy employer liable to pay a co-investment?

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Ruth Canham-James

Yes if the apprentice was 22+ at the original start date. The new employer can arrange their own levy transfer, but that has to be done before the apprentice starts with them. It's not explained explicitly, but you can infer it from paragraph 207:

207. Transferred funds can only be used to pay for training and assessment for apprenticeship standards, for new apprenticeship starts. A transfer must be agreed and put in place before an apprentice (being funded by the transfer) starts their apprenticeship. The only exception to this is where the apprentice is changing employer and an agreement to continue their apprenticeship with their new employer is via a transfer of levy funds – this must be agreed by the point the apprentice starts with their new employer.

Also, the agreement was between the receiving and sending employers, I wouldn't expect that to just roll over to the new employer without the sender agreeing.

Vicky Day

Hi Ruth

Thanks for the quick response. The new employer is Non Levy and is not being funded by Levy transfer, so I am not sure if they then have to pay the co-investment even though the apprenticeship is just continuing with no break or change to dates?

Ruth Canham-James

Yes if the apprentice was 22+ at the original start date. There would be no reason that the new employer wouldn't pay co-investment if they don't have an agreement with a levy sender, which I presume they don't. With a new employer comes a new residual price, a new DAS record, and a new assessment of whether co-investment is required. If an apprentice goes from levy to non-levy employer, with no transfer involved, the new employer would have to pay co-investment (dependent on age).

Vicky Day

Thank you so much. Very clear to me now, much appreciated.