Guidance

Employer support grant guidance

Published 12 March 2026

Applies to England

The employer support grant provides financial support to employers who employ Early Years teacher degree apprenticeship (EYTDA) apprentices in their setting.

The grant is paid to training providers who must distribute it to eligible employers.

Subject to availability, employers will receive a grant for each EYTDA apprentice in their setting. There are 400 grants available.

Eligibility

To receive the employer support grant, employers must:

• employ at least one EYTDA apprentice in their Ofsted-inspected setting
• agree to and keep accurate records of their apprentice’s qualification and progress towards the EYTDA

DfE may ask to see these records at any time.

Providers must:

• deliver EYTDA
• notify employers in writing that they are eligible
• sign a grant offer letter provided by DfE and complete all reporting as required by DfE
• ensure grant assurance processes are in place with employers, including having grant funding agreements with employers to ensure that the requirements set out in the grant offer letter and this guidance are met
• keep an accurate record of spend throughout the apprentice’s course
• ensure that employers continue to be eligible for the employer support grant for the duration of the course

For academic year 2026 to 2027, eligible employers will be able to access a grant worth £8,236 per apprentice. We will publish updated funding guidance for future academic years in summer 2026.

Payments will be split into monthly payments to the training provider, who will then allocate to the employer, throughout the first year of the course, with no payment in August.  

The employer support grant is paid directly to the apprentice’s training provider, who will distribute among eligible employers. The grant is a contribution towards costs that employers incur as a result of employing an apprentice and must not be used for other purposes.

Examples of permitted spend include:

• supply cover while the trainee is attending EYTDA training
• employment costs incurred by the employer in connection with the employment of an EYTDA apprentice
• additional training costs and other overheads related to the employment of the apprentice

The employer incentive cannot be used for:

• sick pay
• maternity or paternity pay
• assets, for example, books, toys and equipment
• internal training costs that do not relate directly to EYTDA training, such as additional continuing professional development
• staff costs that are not related to supply cover for the apprentice or for supervising the apprentice
• costs that have occurred outside of a trainee’s training period
• costs the apprentice may incur outside of training, such as travelling to work or placements
• employment costs and cover for other members of staff who are not covering the apprentice
• bonuses or incentives

If there are any claims for the employer support grant that are not covered by this list, contact EYTDA.ENQUIRIES@education.gov.uk for further advice.

The employer support grant is not paid to apprentices and must not be passed onto apprentices (except as part of permitted spend as outlined above).

Training providers will receive a grant offer letter from the Department, which confirms receipt of the employer support grant. They must sign and return this letter in order to receive the grant funding.

Employers must not under any circumstances deduct EYTDA training costs from the apprentice’s salary.

Training providers must pass all employer support grant funding on to the apprentice’s employer.

Training providers will need assurance systems in place to ensure the employer support grant funding is allocated and spent as intended by the programme and set out in the grant offer letter. Training providers must keep clear records of how the employer is using the employer support grant in case of a financial audit.

Types of employers

Most early years settings, regardless of size, are eligible to receive the employer support grant in respect of an apprentice employed by them. The employer or the apprentice may be required to provide their contract of employment to confirm eligibility.

People who are self-employed are not eligible to undertake EYTDA. This is because apprentices must be working under a contract of employment and have a separate identifiable line manager. This means they are also not eligible to receive the employer support grant. However, if a self-employed person employs an apprentice who is undertaking the EYTDA, the employer can obtain the employer support grant.

Withdrawals and deferrals

If an apprentice withdraws or defers, or a setting closes, training providers must stop any further payments and update their records immediately in DfE’s online portal. Employers must ensure training providers are notified if an apprentice leaves their role.

If an apprentice leaves their role and ceases to be an EYTDA apprentice, before they have completed the EYTDA, employer support grant payments will stop. Employers may be able to keep some funding if an apprentice withdraws or defers. The amount retained should be proportional to how long the trainee attended the course before leaving.   

If an apprentice moves to a different setting, they may be able to continue their EYTDA. The training provider should update their own records and DfE’s register system if the apprentice moves setting. The apprentice should speak to their training provider and new employer to agree next steps.

The new employer must:

• agree in writing with the provider that they will support the apprentice to complete the EYTDA
• support with the off the job training hours
• work with the apprentice’s training provider
• complete any required transfer paperwork

Level 5 qualified staff

Staff who have already completed a Level 5 Early Years Lead Practitioner apprenticeship (EYLP) are able to step onto the EYTDA at the beginning of learning stage 2, provided they meet all other entry criteria, and their training provider can sequence the course delivery appropriately. Employers of Level 5 qualified staff who are stepping onto the EYTDA will be eligible for the employer support grant.

Allocations

There is an employer support grant attached to each available apprenticeship (up to 400 grants), available on a first come, first served approach. Training providers will be contacted by DfE in summer 2026 about how to access places. 

Part-time staff

Employers of part-time staff who are undertaking the EYTDA will be eligible for the employer support grant. 

Prospective apprentices, employers and providers are responsible for deciding whether the EYTDA is a suitable course for part-time staff based on individual circumstances. They will need to ensure that the apprentice can still meet the 1,531 hours off the job training requirement set by the Apprenticeship Standard. This remains a requirement even if the individual is working part time, as apprentices who do not meet the minimum amount of hours during the course duration cannot successfully complete the EYTDA.