Everything you need to know

The new apprenticeship levy applies to all employers in England, who have an annual pay bill above £3m.

The Government made a promise to create 3 million new apprentices by 2020, this was inevitably going to mean some funding issues .

To help plug the gap the Government has introduced the apprenticeship levy, which was ment to come into effect from 6 April 2017, however following several meetings this was put back a month and came into force on 6th May 2017.


Who has to pay the Apprenticeship levy?

The Apprenticeship levy applies to all employers in England, who have an annual pay bill above £3 million.


How is the Apprenticeship levy calculated?

The Apprenticeship levy is a 0.5 per cent tax of the companies annual pay bill.

All employers receive a £15,000 annual allowance, to be offset against the bill. This effectively means that employers with an annual pay bill of £3m or less pay no levy. However although employers with an annual pay bill of £3m or less pay no levy, they must now make a 10% contribution towards the training for their staff. For a customer service level 2 qulaification thei works out to be circa £250.00 contribution from the employer towards their staffs training.


How will the levy work?

The levy will be collected by HM Revenue and Customs monthly through Pay as You Earn (PAYE). It can then be accessed by employers through an online digital service account.

Employers can use the online digital service to pay for apprenticeship training for apprentices that work for at least 50 per cent of their time in England, which will be limited up to certain maximum funding bands. When the apprentice training starts funds (in the form of vouchers) will be taken from the account..


How we can help you

We are uniquely placed with in depth knowledge of the LEVY process and how it can best be utilized to deliver a consistent and effective outcomes for both the staff undertaking the qualification and the employers alike.
We have built a national network of training providers, guaranteeing delivery coverage and capacity whilst maintaining the highest standards of quality assurance.


The members of the network undertake thorough desk based bi- annual reviews of their:

  • Data (success Rates)
  • Ofsted Reports
  • Policies and Procedures
  • Capacity Planning
  • Self Assessment Reports
  • Quality Improvement Plans
  • Financial position


We also undertake physical ’Observations of Teaching and Learning’ on a quarterly basis of al members of the supply chain to ensure that all quality criteria required of the provider is being met and correctly documented.


The process developed by HRUK is to address two critical areas for the employers...

  1. Ensure that the delivery meets the needs of the learners. And secondly, and arguably more importantly…
  2. Ensure that the employer’s levy investment is protected whilst ensuring that no SFA contract regulations aren’t infringed!


HRUK uniquely holds over 40 years combined experience within the learning and development field, ranging from:

  • E learning
  • Commercial Training Operations
  • Quality Assurance
  • National Delivery Experience.


In Short HRUK delivers:

  • Best value for money, delivering cost savings of c15%
  • Consistency of delivery geographically
  • Highest Quality Management
  • Quarterly performance reporting
  • Progression planning, where you as an employer want to deliver your own qualifications internally & externally
  • Contingency planning – multiple providers overlapping the geographical requirement of the learner base

We already support c3900 learners through this unique initiative across the country. Ensuring that economies of scale can be drawn on to consistently deliver best value for money – Nationally!!


So the return on investment that can be achieved by working with HRUK is as follows:

Comparative Analysis of Health & Social Care LEVY budget of c 21,000:

Not using the HRUK Model:

£21k = 7 Apprenticeships delivered

Working with HRUK

£21k = 9 Apprenticeships delivered

A demonstrated cost saving of c£6k


HRUK are funded through national network of training providers, so the services described don’t attract a charge!

Maybe there is such a thing as a FREE lunch after all!

To speak to a member of the training team call us on 0113 225 1244