3RD MAR 2026
The funding solution more employers should know about
A little-known scheme is keeping millions of pounds in Gloucestershire by helping businesses redistribute cash directly to other companies to train apprentices.
By Andrew Merrell, The Raikes Journal
Large organisations will already be only too aware that they pay into the Government Apprenticeship Levy, creating a pot of money that firm is able to reuse - but only for training purposes.
If those companies have no apprenticeship opportunities available and the money goes unspent within two years it is hoovered back up by Government out of everyone’s reach.
It’s a frustrating situation for the companies, who see it as a ‘lost’ opportunity to help train staff, and for those smaller firms who do not need to pay into the levy but have training needs and no capital to make them happen.
However, it seems there is a workaround.
Some of the county’s biggest businesses and organisations, at least those savvy enough to understand the small print of the apprenticeship levy, are passing those funds across to other companies free of charge - some specifically to try and keep that cash in the county.
Alan Mulrooney, one of a team at Gloucestershire College dedicated to helping support businesses with apprenticeships and training, explained that the scheme allows businesses and organisation to create what is called ‘a transfer pledge’ - and even name another company it wants to benefit.
“As long as your apprentice is under 25, the Government now covers the full cost of training that apprentice,” said Mulrooney, which means the Government funds it from the levy.
Non-levy paying employers pay five per cent of the training and assessment costs, with the government covering the remaining 95 per cent, up to the funding band maximum.
“But that five per cent can still be difficult to find - and it can be critical.
“Luckily there is this opportunity for larger levy paying companies to transfer their levy on to SMEs and one-man-bands so they can use it to train apprentices too,” said Mulrooney.
The scheme is there to try to benefit as many as possible, but primarily small and medium-sized enterprises (SMEs), large employers with unspent funds, and the wider economy.
It allows large employers (with a payroll over £3 million) to transfer up to 50 per cent of their unused levy funds to other businesses, charities, or public sector bodies to pay for 100 per cent of apprenticeship training and assessment costs.
Gloucestershire County Council is one such organisation that’s been choosing to transfer its unused funds only to employers in the county.
It’s so far transferred more than £1.5 million to county employers. Apprenticeships in health, adult social care, childcare, construction, engineering, education and, more recently, youth support services, have been made possible as a result.
Word has spread about what the council has been doing, and demand has grown significantly. Between April 2025 and January 2026 more than 200 applications for support were received. That is expected to reach around 250 by the end of March.
Cllr Colin Hay, deputy leader of Gloucestershire County Council and cabinet member for finance, assets and transformation, said: “This is a simple and effective way of keeping training money in Gloucestershire. Instead of unused funds being returned, they help local employers bring in new talent or develop the staff they already have.
“By helping people to develop their skills and build their careers here, we’re supporting local employers, strengthening our economy, and making Gloucestershire an even better place to live and work.”
According to Mulrooney the best way to find out about the scheme and what funding is there is to visit the Government’s website, here: Transferring your apprenticeship levy to another business.
According to the website: “It is your choice which businesses you transfer levy funds to. Any business can receive a transfer of levy funds, including businesses that pay the apprenticeship levy and those that do not.
“All businesses will need an apprenticeship service account to receive a transfer of levy funds. Businesses that pay the apprenticeship levy can choose to either send or receive a transfer of levy funds.”
It added: “Transferred funds can only be used to pay for apprenticeship training and assessment up to the funding band maximum.
“Transfers can only be used for a new apprentice start. This doesn’t mean the apprentice has to be a new employee. It means you cannot receive transfer funding for an employee who has already started their apprenticeship.
“The exception to this is when an apprentice changes employer. The apprentice can continue their apprenticeship with a new employer, funded by a transfer of levy funds.”
Want to find out more about apprenticeships in Gloucestershire?
Speak with the team at Gloucestershire College:
employer.training@gloscol.ac.uk | 0345 1552020
This article was originally published in The Raikes Journal. The Raikes Journal is editorially-led platform dedicated to delivering quality journalism for Gloucestershire about its businesses, charities, education and training sectors.
