A major new government funding package is set to strengthen the early years workforce, helping nurseries and childcare providers improve the quality of education for young children while

creating clearer routes to higher pay and professional progression for staff.

As National Apprenticeship Week draws to a close, the government has announced the launch of a new early years teacher degree apprenticeship, designed to support staff already working in nurseries and early years settings to qualify as teachers while continuing to earn a salary.

The programme will initially support 400 early years practitioners, giving them the opportunity to gain graduate-level qualifications and the skills needed to lead learning in the sector. By investing in staff development, the initiative aims to improve outcomes for children during the crucial early stages of their development.

Boosting skills, pay and retention

Evidence consistently shows that high-quality early education has a lasting impact on children’s lives. Research indicates that settings employing graduate-level staff deliver stronger outcomes, with a 10% rise in graduate employment linked to a 1.2% increase in the number of children reaching a good level of development.

The new apprenticeship is backed by a £3.2 million employer grant from the Department for Education. Employers will receive £9,000 per apprentice each year to cover training costs, alongside an additional £8,000 per apprentice to support backfill, training time and National Insurance contributions. The funding has been designed to ensure that providers are not left out of pocket for investing in their staff.

According to government data, early years professionals with degree-level qualifications typically earn around £5.50 more per hour than those trained to A-level standard. The apprenticeship route is therefore expected to improve both workforce retention and the overall attractiveness of the profession.

A stronger start for children

Minister for Early Education Olivia Bailey said the scheme would help transform careers in early years while delivering real benefits for families and children.

She said the apprenticeships would allow staff to “build skilled, well-paid and rewarding careers” while continuing their vital work with children, adding that backing early years professionals was essential to improving life chances from the very start.

Completing the apprenticeship will enable practitioners to take on leadership roles within settings, work within higher staff-to-child ratios and progress into senior, better-paid positions across the sector.

Industry welcome for new funding

The £8,000 support grant will be paid to training providers, who will then pass the funding directly to early years settings employing apprentices.

Sophie Hayter, Qualification Lead at Kido Nurseries and Pre-Schools, welcomed the announcement, describing it as a “significant and positive step forward” for the sector. She said the investment recognises the importance of highly skilled educators in shaping children’s earliest experiences and would help more children benefit from graduate-level expertise at a critical stage of development.

Part of a wider childcare and skills drive

The new funding forms part of the government’s Best Start in Life strategy and its long-term ambition to place an Early Years Teacher in every setting, addressing ongoing shortages of graduate-level staff.

It follows a record £9.5 billion investment in childcare aimed at expanding affordable, high-quality places across the country. Working parents can now save up to £7,500 a year through expanded funded hours, while funding rates for providers are rising above inflation to help maintain quality as access grows.

More broadly, the announcement sits within a wider government push to use apprenticeships to tackle skills shortages and unlock opportunity. During National Apprenticeship Week, ministers also confirmed new requirements for construction firms working on school building projects to create apprenticeship and T Level placements, alongside new pilots and digital tools to help young people access clearer information about apprenticeship pathways and career outcomes.

Together, the measures signal a renewed focus on building skills, raising standards and ensuring children receive the strongest possible start in life.