Apprenticeship levy sharing remains one of the most underused funding opportunities available to small and medium-sized businesses, particularly across Somerset and the South West.
Every year, significant amounts of unused apprenticeship levy funding are returned to the Treasury rather than being invested in workforce development. At a time when many businesses are looking to recruit new talent, address skills gaps and support employee progression, this represents a missed opportunity for growth.
To help tackle this challenge, UCS College Group has launched the Levy Loop, an initiative designed to make apprenticeship levy transfers simpler, more accessible and more impactful for employers across the region.
What is Levy Loop?
Large employers with an annual pay bill of more than £3 million contribute to the apprenticeship levy and can transfer a portion of their unused funds to other organisations. These transfers can then be used to fund apprenticeship training, helping businesses access funding that may otherwise be unavailable to them.
Levy transfers can also be shared between levy-paying organisations, creating a valuable opportunity for businesses to maximise their levy investment. In some cases, this can remove the need for the additional 25% co-investment contribution associated with employees aged 24 and over, making apprenticeship training an even more cost-effective route for workforce development.
While the process already exists, many employers are either unaware of the opportunity or unsure how to navigate the levy transfer system. Levy Loop has been created to bridge that gap.
Building Connections That Benefit Employers
As part of the initiative, UCS College Group has developed a centralised network to support levy sharing. This includes a directory of organisations willing to participate in levy transfers, alongside key contact information and guidance to make the process easier for all involved.
The goal is to establish a structured and sustainable approach that helps identify levy contributors and match them with employers looking to recruit apprentices or upskill existing staff. Importantly, organisations that choose to share their levy funding remain fully in control of where those funds are transferred. Levy Loop simply facilitates introductions and provides support throughout the process, ensuring that the final decision always rests with the levy-paying employer.
Through these partnerships, Levy Loop will help businesses:
- Access additional apprenticeship funding opportunities
- Reduce apprenticeship training costs
- Invest in workforce development and progression
- Increase apprenticeship starts across key industries and sectors
- Build stronger links between employers across the region
Get Involved
Whether you are a levy-paying employer with unused funds available for transfer, or a business interested in exploring apprenticeship funding opportunities, we would love to hear from you.
Together, we can ensure more apprenticeship funding stays within our region, helping employers develop talent, close skills gaps and create new opportunities for the future.
To find out more about Levy Loop, contact the UCS College Group Future Skills and Growth Team at business@ucscollegegroup.ac.uk.