Early years employers urged to use new apprenticeship funding
GCSE results week puts apprenticeship routes in focus as new funding covers training costs for eligible 16 to 24-year-olds in England.
Early years employers are being urged to use new apprenticeship funding to recruit young people as GCSE results week puts post-16 education and training choices in focus.
Funding rules that took effect on 1 August mean the government now pays 100% of apprenticeship training and assessment costs, up to the funding band maximum, for 16 to 24-year-olds recruited by employers that do not pay the apprenticeship levy.
The government also covers the full cost for apprentices in the same age group at levy-paying employers where funds in their apprenticeship service account have been exhausted. The rules apply to new apprenticeship starts from 1 August in England.
The Childcare Company, part of Impact Futures Group, is calling on nurseries and other early years employers to use the funding changes to recruit young people directly into the sector. It argues that GCSE and A-level results periods give employers an opportunity to put apprenticeships in front of young people while they are considering education, training and employment routes.
Apprenticeships available through the training provider include Level 2 Early Years Practitioner, Level 3 Early Years Educator and Level 5 Early Years Lead Practitioner programmes. The routes allow apprentices to work in an early years setting while earning and completing their training.
Gareth Reichers, director of growth and partnerships at Impact Futures Group, said early years employers should make career and progression routes more visible to young people considering their next step.
He said: ‘We need to make sure school leavers understand all of the possibilities open to them. If we can show them not only what an apprenticeship could mean financially, but the real vacancies, career pathways and progression available in their own communities, we have a far better chance of attracting the next generation of talent our sector urgently needs.’
Further financial support for recruiting young apprentices is due from October. Non-levy-paying employers will be able to receive a £2,000 hiring payment for eligible apprentices aged 16 to 24 starting from 1 October, provided the apprentice joined the employer within the previous three months.
That payment sits alongside existing support for younger apprentices. Employers can receive £1,000 for apprentices aged 16 to 18 and eligible 19 to 24-year-olds with an education, health and care plan or a history of being in care.
The Childcare Company has also launched an online calculator comparing the financial position of apprenticeship and university routes. It calculates an illustrative advantage of up to £115,000 by age 21 for its apprenticeship scenario, combining earnings while training with university debt avoided. The figure is the provider's own calculation rather than an independent estimate.
The August funding changes are part of wider reforms to apprenticeship financing in England. For new apprentices aged 25 and over, non-levy employers generally contribute 5% towards training and assessment costs. Levy-paying employers that have exhausted their apprenticeship service funds contribute 25% for apprentices aged 25 and over, with government paying the remaining 75% up to the funding band maximum.
100%
Training and assessment costs funded for eligible 16 to 24-year-olds
£2,000
Hiring payment available to eligible non-levy employers from 1 October
£1,000
Existing employer payment for apprentices aged 16 to 18 and some eligible 19 to 24-year-olds