Taking on a young apprentice has never been better value. Realise Early Years explains the government incentives open to early years settings, how they combine and how to make the most of them.
Early years settings taking on a young apprentice could receive up to £3,000 in government incentives, alongside fully funded training and no employer National Insurance for apprentices under 25. Whether you run a single nursery or manage a group of settings, here’s what you need to know.
Every early years setting knows the difference a settled team makes. Children thrive on consistent, trusting relationships. Practitioners do their best work when they feel supported and confident. And a stable team is the foundation of a sustainable setting.
Building that team, though, is rarely straightforward. Recruitment takes time, and finding people with the right values and potential can feel like a constant challenge. That’s why these incentives deserve a closer look.
There are two cash incentives. They may be combined, depending on eligibility.
● £1,000 for apprentices aged 16 to 18 – Any employer can claim this, whether the apprentice is a new recruit or already part of 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 in two parts: £500 after 90 days and £500 after a year.
● Up to £2,000 for non-levy employers – If your annual pay bill is under £3 million, so you don’t pay the Apprenticeship Levy, you could receive up to £2,000 for a new apprentice aged 16 to 24. They must have been employed by you for no more than 90 days before their apprenticeship training starts. It’s paid in two instalments through your training provider.
Alongside these, non-levy employers have training fully funded for apprentices under 25, up to the funding band. And whatever your size, there’s no employer National Insurance to pay on apprentices under 25.
Many independent nurseries have an annual pay bill under £3 million, so they could benefit from both payments and fully funded training.
If your setting is part of a larger nursery group, it’s worth checking before you recruit. The £2,000 depends on the group’s total pay bill, not just your setting’s. The £1,000 and the National Insurance saving apply to every employer, and we can help you work out what applies.
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What your setting could receive depends on the apprentice’s age and circumstances. For a non-levy employer, a new apprentice aged 16 to 18 could bring up to £3,000. Most new apprentices aged 19 to 24 would bring up to £2,000, or up to £3,000 if they have an Education, Health and Care plan or have been in care.
If you’ve welcomed a young team member in the last few weeks, you may not have missed out. If they’re aged 16 to 24 and start their apprenticeship within 90 days of joining, a non-levy employer could still receive up to £2,000. Because this depends on timing, it’s worth acting quickly.
The funding is welcome, but the real value of an apprenticeship is in the practitioner it helps you develop.
Apprentices learn on the job, so theory comes to life in the room, with children they know and in a setting whose ethos they understand. They bring curiosity and fresh energy, and they often ask the questions that make the whole team reflect.
Mentoring an apprentice can be valuable development for experienced practitioners too. Supporting someone else’s learning is a chance to revisit your own practice and share what you know.
We work only in early years, so we understand the day-to-day pressures settings face. Making sense of the incentives shouldn’t add to them. Our team will support you to:
● Find the right apprentice – Our free apprentice recruitment service takes care of advertising your vacancy, screening candidates and arranging interviews. You always make the final decision.
● Understand what you could receive – We’ll talk you through which incentives apply to your setting and the young people you’re hiring or have recently hired.
● Get the timing right – We’ll help you plan start dates, so you stay within the 90-day window for the £2,000.
● Manage the process – The apprenticeship incentives are paid through your training provider, so we’ll handle the process with you from start to finish.
● Deliver training that works in practice – Our local trainers provide regular face-to-face support, helping your apprentice grow into a confident, capable practitioner.
Whether you’re planning to recruit or have recently welcomed someone new, get in touch with Realise Early Years. We’ll talk you through what your setting could be eligible for and support you every step of the way.
Simply complete our online form and we will be in touch to discuss your needs.
Eligibility criteria apply. Incentive amounts depend on the apprentice’s age and circumstances, and on your employer’s annual pay bill.
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