Apprenticeship funding for nurseries can cover most or all of the eligible training and assessment price when an employer trains existing staff or recruits a new apprentice in England. The exact calculation depends on the apprentice’s age, the employer’s levy position, the agreed training price and the rules at the start date.
This guide reflects the GOV.UK position checked in September 2026. Always ask the training provider to confirm the calculation for each employee before enrolment.
Nursery apprenticeship funding at a glance
| Employer position | Apprentice | Current training contribution |
|---|---|---|
| Employer does not pay the levy | Aged 16 to 24 | Government pays 100% up to the funding-band maximum. |
| Employer does not pay the levy | Most other eligible apprentices | Employer pays 5%; government pays 95% up to the maximum. |
| Levy payer with available funds | Eligible apprentice | Training is normally paid from the apprenticeship service account. |
| Levy payer without enough funds | Aged 16 to 24 | Government pays 100% up to the funding-band maximum. |
| Levy payer without enough funds | Most other eligible apprentices | Employer pays 25%; government pays 75% up to the maximum. |
These percentages apply to eligible training and assessment, not wages or every cost connected with employing somebody. See the current GOV.UK apprenticeship funding guidance.
Funding for non-levy nursery employers
Most independent nurseries and smaller early years employers will not pay the apprenticeship levy. For these employers, government currently pays the full eligible training and assessment cost for apprentices aged 16 to 24, provided the agreed price does not exceed the funding-band maximum.
For most other eligible apprentices, including many employees aged 25 or over, the nursery pays 5% and government pays the remaining 95%. The provider agrees a payment schedule with the employer and government pays its share directly to the provider.
What does 5% co-investment mean in practice?
Co-investment is based on the agreed training and assessment price, subject to the maximum funding band. For illustration:
- If the eligible agreed price is £5,000, a 5% employer contribution is £250.
- If the eligible agreed price is £7,000, a 5% contribution is £350.
- If a provider charges above the standard’s funding-band maximum, the employer normally pays the excess as well as any applicable contribution.
These are examples, not quotations. Ask the provider for the written calculation and payment schedule for the actual apprenticeship.
How levy funding works
Larger organisations that pay the apprenticeship levy use funds in their apprenticeship service account for eligible training and assessment. A nursery group should involve whoever manages that account before agreeing starts across several settings.
If a levy-paying employer has exhausted its available funds, the current rules distinguish between apprentices aged 16 to 24 and most older apprentices. GOV.UK currently states that government pays 100% for the younger group and 75% for most others, with the employer paying 25%, up to the applicable funding-band maximum.
Funding transfers from another levy-paying organisation may sometimes cover eligible training. Availability and conditions vary, so do not assume a transfer until it has been arranged through the apprenticeship service.
Can funding be used for existing nursery employees?
Yes. Apprenticeship funding is not limited to new recruits. A current assistant, practitioner or room leader can potentially begin an apprenticeship when the programme is relevant to their occupation and delivers substantial new learning.
The provider must assess existing qualifications, sector experience and other relevant training. Prior learning may reduce the training content, price or duration. Funding cannot properly be used to repeat learning solely so an experienced employee receives another certificate.
Compare early years apprenticeship levels against the employee’s actual duties before selecting a programme.
Additional £1,000 employer support
An employer can receive £1,000 to support an apprentice who, at the start of training, is:
- aged 16 to 18;
- aged 19 to 24 and has an education, health and care plan; or
- aged 19 to 24 and has been in care.
The training provider confirms eligibility and pays the employer in two £500 instalments, subject to the apprentice remaining employed at the payment points. This money can support employment-related costs such as equipment, uniform or travel.
Hiring payment from 1 October 2026
GOV.UK says eligible non-levy employers may receive a hiring payment of up to £2,000 when recruiting a new apprentice aged 16 to 24 from 1 October 2026. Detailed eligibility rules apply.
This is specifically connected to recruiting a new apprentice; it should not be assumed for an existing employee. Confirm the planned start date and eligibility with the provider before including it in a recruitment budget.
What apprenticeship funding covers
Public funding is intended for the eligible training and assessment required by the apprenticeship. Depending on the standard and delivery plan, this can include structured teaching, coaching, reviews and preparation for assessment.
The provider should explain what is included in the agreed price, which qualification or assessment costs are covered and whether any proposed extras sit outside the funded programme.
What the nursery still has to pay for
- The apprentice’s wages and associated employment costs.
- Paid time spent training or studying during normal working hours.
- Workplace supervision, mentoring and management time.
- Normal equipment, uniform or resources needed to do the job.
- Any agreed training price above the funding-band maximum.
- Optional qualifications or services that are not part of the funded apprenticeship.
The employer must pay at least the applicable minimum wage. Apprentices also receive the same relevant employment conditions as comparable employees, including holiday and sick-pay rights.
Funding-band maximums explained
Each apprenticeship standard has a maximum amount of government funding available for training and assessment. It is a ceiling, not a compulsory provider price and not cash paid directly to the nursery.
The employer and provider agree a price. If that price is within the band, the normal government and employer percentages apply. If it is higher, the amount over the maximum is not covered by government apprenticeship funding.
For current standards, review our employer guides to Level 2, Level 3 and Level 5.
How to confirm funding before enrolment
- Confirm whether the nursery pays the apprenticeship levy.
- Identify the employee or proposed recruit and their age at the planned start.
- Match the role to the correct apprenticeship standard.
- Ask the provider to complete eligibility and prior-learning assessments.
- Request the agreed training price, funding band and employer contribution in writing.
- Confirm any additional support or hiring payment separately.
- Check what costs remain outside the funded price.
Frequently asked funding questions
Does the apprentice pay anything?
No. An apprentice should not be charged tuition fees for their apprenticeship training. The funding arrangement is between government, the employer and the training provider.
Is an apprenticeship free for every nursery?
Not automatically. Some eligible training is fully funded, while other cases require an employer contribution. Wages and workplace costs remain the nursery’s responsibility in every case.
Can we fund several staff at once?
Potentially. Each employee requires an individual eligibility, role and prior-learning assessment. Ask the provider for a workforce-level proposal that still shows the calculation for every apprentice.
Can funding rules change?
Yes. Use the planned start date, not the date of an initial conversation, and obtain confirmation before signing the training plan.
Get a funding conversation started
Tell us whether you are training existing staff, recruiting or planning several apprentices. A provider can then confirm programme availability and the likely funding route.