How Recruitment Costs Stack Up in UK Nurseries
Recruiting qualified nursery staff in the UK can be expensive and time consuming. Permanent recruitment fees charged by agencies typically range from 12 to 20 per cent of the new employee’s first‑year salary depending on role and seniority. For example, a recruitment agency might charge a nursery £3,000 to £6,000 to source a qualified practitioner or £4,000 to £8,000 for senior appointments.
When temporary staff are needed at short notice, daily staffing supply costs can be £15 to £18 per hour or more, significantly increasing payroll spend if agency temps are used frequently.
By contrast, apprenticeships and level 3 Diploma routes provide nurseries with cost‑effective ways to fill staffing gaps and build a resilient workforce from within:
- Apprenticeships reduce reliance on agencies because candidates can be recruited directly into the nursery either as new team members or as upskilling opportunities for existing staff.
- Level 3 Diplomas offer flexible training that upskills your team without the need for external recruits, helping reduce turnover and recruitment spend over time.
According to HR data, the average cost to fill a vacancy across sectors is over £6,000, with senior roles often exceeding £10,000 — costs nurseries can avoid by developing existing talent.
Funding Eligibility: Apprenticeships and Financial Support
One of the biggest advantages of apprenticeships is the range of government funding available to employers.
Nurseries with fewer than 50 staff that recruit apprentices aged 16 to 21 often have 100 per cent of the apprenticeship training costs covered by government funding, meaning their nursery pays nothing towards training fees.
For apprentices aged 19 and over, the government typically co‑funds 95 per cent of training costs, with employers contributing a small amount — often capped at around £350.
There are additional incentives available too:
- A £1,000 employer incentive payment for each apprentice recruited or for existing staff enrolled onto an apprenticeship if they are aged 16 to 18, or aged 19 to 24 with an education, health and care plan or care experience.
- Access to the Apprenticeship Levy if your nursery has a large payroll, allowing you to invest funds you already pay into apprenticeship training.
These funding options significantly reduce the direct training costs for apprentices and make it financially viable for nurseries to build talent pipelines without high agency fees.
The Diploma Route: Flexible Upskilling for Current Staff
Not all staffing needs are met by apprenticeships alone. For existing practitioners who are ineligible for apprenticeship funding or who already hold basic qualifications, the Level 3 Diploma in Childcare and Education provides a flexible, fee‑based alternative.
The Level 3 Diploma equips staff with advanced knowledge of child development, behaviour support, safeguarding, and curriculum planning. Upskilling existing staff in this way has multiple benefits:
- Reduced reliance on external recruitment because your current team can take on more senior duties.
- Better staff retention as employees see a clear career development pathway and investment in their professional growth.
- Improved quality of care, which contributes to higher parent satisfaction and stronger inspection outcomes.
Many nurseries find that when staff feel supported in their learning and career progression, they are more likely to remain loyal, reducing turnover and the need to recruit frequently.
Swift Implementation: How to Reduce Recruitment Costs Now
Putting apprenticeships and diplomas into practice can deliver cost savings quickly when you follow a structured approach:
Audit your staffing needs
Assess skills, qualifications and upcoming vacancies to identify where apprenticeships or diplomas would have the most impact.
Secure funding and incentives
Work with training partners like Swift Childcare to access funding options, claim incentives and maximise the financial benefits available to your setting.
Recruit apprentices strategically
Use free apprenticeship recruitment services where available to find candidates who match your culture, needs and long‑term goals — avoiding agency fees entirely.
Develop clear progression pathways
For staff taking the Level 3 Diploma, define how their new skills will be used in practice, including future leadership or specialist roles.
Monitor impact
Track recruitment costs, staff turnover, retention and quality standards to measure how much your nursery is saving and how workforce skills are improving.
Conclusion
Nursery recruitment costs can be a significant drain on budgets, but by taking advantage of apprenticeships and Level 3 Diplomas, your setting can reduce reliance on costly agencies, cut training fees and build a stable, skilled workforce.
Download our Nursery Recruitment Cost Guide HERE to see how much you could save and start planning your pathway to a more efficient, confident team today.
