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Up to £3,000 in incentives: why now is the time to take on an apprentice

  • Up to £3,000 in incentives: why now is the time to take on an apprentice

By Karen Derbyshire, Director at Realise Early Years

Early years settings taking on a young apprentice could receive up to £3,000 in government incentives. Realise Early Years explains what’s available, and how apprenticeships can build a confident, skilled team for the future.

Finding and keeping skilled practitioners is one of the biggest challenges early years settings face. Growing your own through apprenticeships is one of the most effective answers, and this autumn the funding makes it better value than ever.

What’s available

● £1,000 for apprentices aged 16 to 18 – Available to any eligible employer, for a new recruit or someone already in your team. It also covers 19- to 24-year-olds with an Education, Health and Care plan, and care leavers. It’s paid through your training provider: £500 after 90 days and £500 after a year.

● Up to £2,000 hiring payment (new) – For non-levy employers, with an annual pay bill under £3 million, taking on a new apprentice aged 16 to 24. The apprentice must have been employed by you for no more than 90 days before their training starts, and the apprenticeship must start on or after 1 October 2026. It’s paid through your training provider in two instalments.

The two payments may be combined, depending on eligibility. So, at a non-levy setting, a new apprentice aged 16 to 18 could bring up to £3,000, while most new apprentices aged 19 to 24 would bring up to £2,000.

There are savings too. Training for apprentices under 25 is fully funded, up to the funding band, whatever your size. And no employer pays National Insurance on apprentices under 25.

If your setting is part of a larger nursery group with a pay bill over £3 million, the £2,000 won’t apply. But the £1,000 and the National Insurance saving still can, and training is paid from your levy funds first, then by the government.

Recently recruited someone?

If you’ve welcomed a young team member in the last few weeks, they may still qualify for the £2,000, as long as their apprenticeship starts within 90 days of their start date. Because the window is short, it’s worth acting quickly. Our team can help you check.

Apprenticeships and quality practice

The funding is welcome, but the real value of an apprenticeship is the practitioner it helps you develop.

● Learning that comes to life – Apprentices apply what they learn straight away, with children they know, in an environment they understand. Theory becomes practice day by day.

● Fresh energy and reflection – Apprentices bring curiosity and new ideas. Their questions often prompt the whole team to reflect on why things are done the way they are.

● Development for experienced staff – Mentoring an apprentice is valuable professional development for the mentor too. Supporting someone else’s learning is a chance to revisit your own practice and share what you know.

● A clear route to progress – A pathway from Level 2 through to leadership helps you keep good people and grow your future room leaders.

Getting it right from the start

The settings where apprentices thrive tend to get a few simple things right. They give each apprentice a named mentor, someone with the time and experience to guide them day to day, and they plan study time into rotas, so learning becomes part of normal practice rather than a pressure point. Regular check-ins between the apprentice, their mentor and their trainer help everyone spot challenges early and celebrate progress.

Just as importantly, apprentices are treated as part of the team from day one, involved in team meetings, planning and training. And start dates are agreed early, so training begins within the 90-day window and the £2,000 isn’t missed.

How Realise Early Years can support you

We work only in early years, so we understand the day-to-day pressures settings face. Our team will support you to:

● find the right apprentice through our free recruitment service, which handles advertising, screening and interviews, while you make the final decision

● understand which incentives apply to your setting, for new and recent recruits

● plan start dates so you stay within the 90-day window

● manage the incentive process from start to finish

● deliver practical training, with regular face-to-face support from our local trainers

Find out what your setting could receive

Whether you’re planning your next hire or have recently welcomed someone new, now is the time to act. Simply complete our online form and our team will be in touch to talk through your options.

Eligibility criteria apply. Incentive amounts depend on the apprentice’s age and circumstances, and on your organisation’s total annual pay bill.