Funding the Level 4 Improvement Practitioner: Levy, 5% Co-Investment & Transfers

A simple guide for managers new to apprenticeship funding in England.

Quick view

• Levy payer? Use your levy pot—no extra cash from your budget.
• Non-levy? Pay 5% co-investment (typically ~£300 for this programme); government pays 95%.
• Levy transfer? A large employer can fund up to 100% of your costs from their unused levy via a transfer.

(Applies to apprenticeships in England. Scotland/Wales/NI have different systems.)

1) If you’re a Levy-paying employer

Who this is for: Organisations with an annual UK wage bill over £3m (you already pay the Apprenticeship Levy at 0.5% of payroll).

What happens:

• Your levy is collected into a digital account (Apprenticeship Service).
• Funds can be used only for approved apprenticeship training and end-point assessment (EPA) up to the funding band maximum.
• Funds expire after 24 months if not used (first in, first out).
• There is usually a person in the business who is in charge of Levy use.

How to fund a Level 4 Improvement Practitioner apprentice (step-by-step):

1. Create / log in to your Apprenticeship Service (AS) account and add your PAYE.
2. Add the apprentice (name, start date, standard = Improvement Practitioner Level 4, training provider).
3. Approve the training plan & price (training + EPA within the funding band).
4. Funds draw down monthly from your levy pot—no extra cash needed from your budget.
5. Track spend: your AS dashboard shows live balances and expiry dates.

Good to know: You can transfer up to 25% of your annual levy to other employers (see section 3) if you have surplus.

2) If you’re a Non-levy employer (or your levy pot is empty)

Who this is for: Employers who don’t pay the levy, or levy payers who’ve run out of levy.

What happens:

• The government pays 95% of the training + EPA price.
• You pay 5% (your “co-investment”).
• For this programme, that’s typically ~£300 total for a 12-month+EPA package—exceptional value.

How to do it (step-by-step):

1. Create / log in to your Apprenticeship Service account.
2. Reserve funding (it takes 2–3 minutes): choose the month the apprentice will start and the standard (Improvement Practitioner L4).
3. Add the apprentice and approve the training plan.
4. Pay your 5% contribution (usually invoiced by the provider in instalments). Government automatically pays the other 95% direct to the provider.

Tip: If budgets are tight, ask your provider to help you apply for a levy transfer (section below). If successful, your co-investment becomes £0.

3) Using Levy Transfers (have a large company fund you)

What is a transfer?
A levy-paying employer can transfer up to 25% of their annual levy to another employer. If you receive a transfer, it can cover up to 100% of your apprenticeship training + EPA (within the funding band). No 5% contribution is required from you.

Who can receive a transfer?

• Any employer in England with an AS account (SMEs, charities, suppliers in a large company’s supply chain, local businesses, etc.).

How to get a transfer (step-by-step):

1. Set up your AS account (free) and add basic company details.
2. Find a transfer donor:
   • Ask your local authority, combined authority, or Chamber of Commerce—many broker introductions.
   • Talk to large customers/suppliers; they often pledge funds to their supply chain.
   • Search for public levy pledges within the AS “pledge” area (many big brands post offers by sector/region/priority groups).
3. Agree the match: You and the donor agree the apprenticeship standard (Improvement Practitioner L4), start month, and number of apprentices.
4. Request the transfer in AS: Your training provider can guide you through the digital approval steps.
5. Approval & drawdown: Once approved, 100% of training/EPA is paid via the donor’s levy—your cost is £0.
6. Keep to the plan: Transfers are tied to the agreed start dates and price; if plans change, update AS promptly to avoid funding lapses.

What donors look for:

• Clear business case (skills need, role, location).
• Project impact (e.g., productivity, quality, sustainability).
• Completion likelihood (supportive manager, confirmed start date, realistic plan).

What funding does and doesn’t cover

Covered: Training and end-point assessment up to the funding band maximum.
Not covered: Apprentice’s salary, travel, equipment, or recruitment costs (those remain your employer costs).