How Apprenticeships Can Help Nurseries Offset the Upcoming National Insurance Hike in 2025

Big Changes Are Coming to National Insurance in 2025

With the upcoming National Insurance (NI) contributions increase from 13.8% to 15% for employers, nurseries across the UK will face significant cost hikes. The challenge intensifies as the threshold for paying NI drops from £9,100 to £5,000, further increasing payroll expenses for nursery staff.

But there’s good news. Nursery owners can take proactive steps to offset these rising costs while building a skilled, passionate workforce. The answer? Apprenticeships.

Why Apprenticeships are the Smart Choice for Nurseries

One effective solution for managing rising costs is through apprenticeships. By recruiting apprentices under the age of 25 who are on approved apprenticeship standards, nursery owners can significantly reduce their NI payments. Employers are exempt from paying NI contributions for apprentices under 25 who earn less than £967 per week (or £50,270 annually).

By bringing apprentices into your nursery, you can:

• Offset rising NI costs: Reduce payroll expenses by taking advantage of the NI exemption for apprentices under 25.
• Develop new talent: Apprenticeships provide an opportunity to train and develop staff who are passionate about working in the early years sector, including nursery assistants, practitioners, and support staff.
• Maximise apprenticeship funding: Through the Apprenticeship Levy and government co-investment, nurseries can cover up to 95-100% of the apprenticeship training costs.

A £1,000 Boost for Hiring Young Apprentices

If your nursery hires an apprentice aged 16 to 18, you’ll also receive a £1,000 grant. This financial boost, alongside the NI exemption, makes apprenticeships a cost-effective and forward-thinking solution to rising payroll costs.

Take Action Now

With April 2025 approaching fast, now is the time for nurseries to prepare for these NI changes. By investing in apprenticeships, nursery owners can avoid increased payroll costs and take full advantage of government support to upskill and retain their staff.

At Swift Childcare, we provide tailored apprenticeship programmes that help nurseries navigate these changes and build a stronger, more resilient workforce. From accessing available funding to recruiting and training apprentices, we’re here to support your nursery every step of the way.

Take the First Step: Book a Consultation or Download Our Free Guide to the UK Apprentice Levy

Are you ready to explore how apprenticeships can help your nursery reduce costs and develop talent? Book a free consultation today or download our Guide to the UK Apprentice Levy to learn more about how the Apprenticeship Levy and NI exemptions can benefit your nursery.