Since the Labour Government came to power, they have made it clear early years education is a priority. They have also moved quickly to protect the funding used by settings to recruit and upskill apprentices.
One policy designed to support recruitment is the Youth Guarantee, which promises to guarantee apprenticeship funding for all 16- to 21-year-olds, and there may be some additional incentives for nursery owners. All apprentices are also exempt from employer’s National Insurance Contributions.
While the Youth Guarantee is a welcome announcement, it raises the question of whether nurseries will have guaranteed access to apprenticeship funding in the future.
The Department for Education’s budget to fund apprenticeships in England has been 98 and 99 per cent spent in each of the last two financial years. Recent funding increases for some popular apprenticeship standards (including the Early Years Educator) will stretch the budget to breaking point.
With 15,300 enrolments in 2024, the EYE Level 3 is the most popular apprenticeship standard in the UK, and funding for it will be at risk unless changes are made.
I believe this change should come by removing all Level 7 apprenticeships from being funded. When funding of Level 7 was introduced in 2017-2018, £12 million was spent. That has now ballooned to £238 million. Defunding Level 7 apprenticeships, the equivalent of a Master’s degree, would free up enough money to train 33,000 Early Years Educators. Securing a Level 7 qualification is a privilege, staffing the sector with skilled workers is a priority.
Redundancies have started to happen across the country. The focus now must be on supporting as many people as possible to get into employment via apprenticeships at Level 2 and Level 3. Apprenticeships should be about helping people to get onto the first rung on the ladder of employment, not funding those people who are already at the top.
Removing Level 7 would mean that more money could be allocated to Level 2 and Level 3 apprenticeships, such as the EYE Level 3, and support young people to begin their childcare careers.
The Government needs to act now. Young people need to know that apprenticeships will be available for them throughout 2025. Nurseries need to be able to plan their recruitment and workforce development with certainty.
Apprenticeships are critical to the early years economy and to social mobility. They deserve to be protected.
