Independent guidance for early years apprentices and nursery employers across England
Nursery apprenticeship guide

Apprenticeship Funding for Nurseries

A plain-English guide to nursery apprenticeship funding in England, including levy funds, under-25 funding and employer co-investment from August 2026.

Apprentices do not pay tuition fees. Training and assessment costs are handled through the employer and the apprenticeship funding system in England.

Employers that pay the levy

Large employers use available funds in their apprenticeship service account to pay for eligible training, subject to the current funding rules and the maximum funding band for the standard.

Non-levy employers from August 2026

Under the 2026 funding changes, training for apprentices aged under 25 can be fully funded for non-levy employers. For apprentices aged 25 or over, the standard co-investment contribution is 25% of the eligible training cost, with government funding covering the remainder, unless another funding arrangement applies.

Levy transfers

An employer with unused levy funds may be able to transfer funding to another organisation. This can potentially reduce the contribution for a smaller nursery, but availability and approval are not guaranteed.

What funding does not cover

The employer remains responsible for wages, employment costs, supervision and creating a suitable job. Funding also does not remove the requirement for genuine new learning or make an unsuitable role eligible.

Why the apprentice should not be charged

An apprentice must not be asked to contribute towards eligible apprenticeship training and assessment costs. Be cautious of organisations describing a paid-for standalone course as an apprenticeship.

Get a current calculation

Funding policy changed significantly in 2026 and may change again. A training provider should confirm the employer contribution for the learner’s age, start date and circumstances before anyone commits.

Choose an approved provider

Funding and delivery should be confirmed together. Use our guide to choosing an early years apprenticeship provider, including the questions employers should ask about costs, delivery and workplace responsibilities. Employers considering the degree route can also read the Level 6 Early Years Teacher guide.

Employer enquiry →