Nurseries could receive up to £3,000 for hiring an apprentice from October 2026.
If a new team member is on your mind, it’s a good time to look at what support is available. A new £2,000 hiring payment starts in October, and some nurseries could receive an additional £1,000. There’s help with training costs, too.
Here’s How It Could Work for Your Nursery.
What Is the New £2,000 Hiring Payment?
From 1 October 2026, nurseries that do not pay the apprenticeship levy could receive £2,000 when they hire a new apprentice aged 16 to 24.
There are a couple of dates to get right. The apprenticeship must start on or after 1 October, and the apprentice must have joined your nursery no more than 90 days before their apprenticeship starts. The payment is made in two instalments, as long as they remain employed and in training when each payment is due.
If you’re planning a hire, talk to us early. We can help you think through the role, the start date and whether the payment could apply.
How Could My Nursery Receive up to £3,000?
Your nursery could also receive an additional £1,000 to help support an apprentice at work. This applies to apprentices aged 16 to 18 when their training starts. It can also apply to some apprentices aged 19 to 24 who have an education, health and care (EHC) plan or have been in care.
That money can go towards costs connected with employing them, such as equipment, travel or uniform. If your new hire meets the conditions for both payments, your nursery could receive £3,000 in total.
What About the Cost of Training?
The support goes beyond hiring payments. For nurseries that do not pay the apprenticeship levy, the government covers 100% of eligible training and assessment costs for apprentices aged 16 to 24, up to the funding band maximum. For apprentices aged 25 and over, the government covers 95%, with your nursery contributing the remaining 5%.
You can use apprenticeship training to develop people already in your team as well as new recruits. Perhaps someone is ready to build their confidence and skills, or you’re thinking about who could take on more responsibility as your nursery grows. The £2,000 hiring payment has separate rules for new hires, but training funding can still make developing an existing team member more affordable.
If your nursery group does pay the levy and has used its apprenticeship funds, government funding can also cover eligible training and assessment costs for apprentices aged 16 to 24, up to the funding band maximum. The new £2,000 hiring payment is for employers that do not pay the levy.
Could Hiring an Apprentice Reduce Employer National Insurance Costs?
It could. While an eligible apprentice is under 25, your nursery pays no employer National Insurance on their earnings up to the apprentice National Insurance threshold. That threshold currently aligns with the top of the basic-rate income tax band in England. Employer National Insurance applies to earnings above it.
This is an existing relief, separate from the new October payment. It’s another useful figure to know when you’re considering the cost of bringing someone into your team.
Let’s Talk About the Person Your Nursery Needs
Funding can make a hire easier to plan. Finding someone who is right for your children, your team and your setting matters just as much.
Early Years is all we do at WMC Training. Tell us about the role you’re hoping to fill, and our apprenticeship team can help you understand the incentives, choose the right training and find and place an apprentice for free. We’ll be there to support you and your new team member as their training gets underway.
