Levy-Transfer

The employer name on DAS shows the non-levy employer because this is who sends the cohort and who you have a contract for services with. It's their account that'll be matched with your ILR; it's just that they select "use transfer funds" when adding the learner in the first instance. The employer sending the transfer will have received a notification once you/the receiving employer have both agreed the details on DAS, and will have had final say on whether to allow the cohort to go through (which it sounds like they have), but to a large degree they are a "silent" partner.

The co-investment is potentially triggering because the sending employer may have insufficient funds to pay for the apprentice(s) this month. Apprentices are assigned an order of priority, so it may be that there are a number of apprentices higher in the queue, though transfer funded apprentices are awarded highest priority.. so it's a little odd. 

56. Where apprenticeship training is not funded from the employer’s account (for non-levy payers and levy payers with insufficient funds – including those funded through transfers that subsequently have insufficient funds), employers must co-invest a percentage (5% or 10%) of the agreed total price up to the funding band maximum

112. If the sending employer (the employer who transferred the levy to another employer) either has insufficient levy funds in their account, or has exceeded their transfer allowance for that financial year, the apprentice’s employer (the receiving employer) will fund the training if they have their own levy balance available or through co-investment. Where this occurs, we will use the levy funds of the apprentice’s employer according to the priority ordering detailed in the next paragraph. We will pay for these apprentices in priority order alongside any other apprentices funded through that account.

Thanks for the response Ben, very useful. As you say it's a bit odd how it works, are we supposed to obtain and keep any of the information/confirmation between the non-levy employer and the levy-transfer employer? When I look at their record on DAS it doesn't look any different to anybody else, so wouldn't even know it was funded via levy-transfer if I hadn't been told, but then again what if they haven't actually done it and we should be charging them the 5%?

DAS will show the name of the employer and not the funding transfer employer, are you shure the employer has used the transferred funds as per the guidance: https://www.youtube.com/watch?v=4jcUqiStyA4&list=PLMNvQX_aIOux3SdHgg3Iw8D8dPrVHbMY7&index=13

There'll have been an agreement between the sending and receiving employer, depending on how the transfer has come out (whether via pledging, or request for funds etc.) but you're not required to retain copies of any written agreements as the training provider, if they even exist. Your contract will be with the employer co-delivering the apprenticeship, not the one sending the funds. 

As for how would you know; the first part of the process will identify whether it's being funded via a transfer as you'll have received an email which states something to the effect of

Cohort 99999A is ready for approval. SENDING EMPLOYER has chosen to use funds transferred from another employer to pay for the training in this cohort.

What you need to know about cohorts funded through transfers

You and the employer will approve the cohort as usual. The cohort will then be sent to the employer who is transferring the funds for final approval. Once the cohort has been approved you will be able to view and manage the apprentices

Read more about the rules for sending and receiving transfers

10% of all transfer funds are subject to state aid regulations. They should be treated in the same way as other funds subject to state aid such as receipt of the AGE grant

Read more about state aid
https://www.gov.uk/guidance/state-aid

To review cohort 99999A you will need to sign in to your apprenticeship service account at https://providers.apprenticeships.education.gov.uk.

Kind regards,
Apprenticeship service team

If this was missed, or if you're picking this up later in the process after the cohort has been approved.. you're right, DAS doesn't really tell you if it's transfer funded or not. To all intents and purposes though, it doesn't really matter. If the sending employer has sufficient funds, you'll get the funding directly.. and if they ever fall short, the learner will appear on the co-investment report and you'll need to ensure you collect it from them for the affected month(s) or you'll not be able to claim the final 20%.

Martin's linked video is definitely useful for the start of the process.

Morning, jumping on this as I have a funny one.

If the employer has given us permissions to set up cohorts on their behalf, would we see the "use transfer funds" message, also, can the start date be backdated as if they were a levy payer?

Many thanks

Laura

You can only use set up cohorts when the employer gives you permissions it does not give you access to any other functions on the employers DAS account.

The start date cannot be backdated to before the reservation of funds for non-levy payers.

HTH

So how do I, if setting up the new cohort use the transfer levy funds for the employer?

See this guidance: https://www.youtube.com/watch?v=4jcUqiStyA4&list=PLMNvQX_aIOux3SdHgg3Iw8D8dPrVHbMY7&index=13

The employer will have to set up the transfer first before they ask you to set up the cohort.

Hi Martin, thanks for the video link - makes it easier to understand.

If the cohort has already been set up e.g. July and transfer has only just been agreed can this be backdated?

also, if I have new starters for Aug (31/8) and not yet on DAS, transfer has now been agreed and invitation is being sent to the employer, can this be backdated on DAS, as obvs now in Sept?

Sorry, just trying to get my head around it as its the first time I've had this.

Whether the system actually allows it to go through is one thing, but the employer rules suggest that as a matter of procedure it should not be permitted;

E212 Employers receiving transferred funds will only be able to use them 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.

Anyone able to answer ?

Hi 

I am coding my first employer using the levy transfer funding. Can i check this is correct.

we have highlighted our employer is a small employer , removed the 5% co investment amount and against the programme aim i have put ACT1 and 1L to show funding through levy. 

Is this how everyone else codes it or do you still code it as 1N for non levy?

 i thought using levy would avoid triggering the expected co investment amount?

thank you