New employer grant to boost quality in early years education

The new early years teacher degree apprenticeship will allow 400 staff to earn while they learn, gaining the skills to teach in nurseries and early years settings, improving the quality of early education children receive in the years that matter most.

By raising skills and creating clear routes to higher pay, the programme will help make early years a more attractive and rewarding profession, supporting recruitment and retention for the staff who are central to giving children the best start in life.

High-quality early education and childcare makes a lasting difference to a child’s life. The evidence is clear that the better trained the staff in nurseries and early years settings are, the more children benefit.

Research show that providers with graduate-level early years staff deliver better outcomes for children. For every 10% increase in settings employing a graduate, the proportion of children reaching a good level of development rises by around 1.2%.

Backed by a £3.2 million grant to support employers, the programme will contribute £9,000 per apprentice each year to cover training costs. The government will also provide an additional £8,000 per apprentice to help employers cover backfill, training and National Insurance costs, so that no provider is left out of pocket.

Department for Education data shows those with degree-level qualifications in early years typically earn around £5.50 more per hour than those trained to A-level standard, underlining how apprenticeships can boost pay while strengthening quality across the sector.

The announcement comes as part of National Apprenticeship Week, when employers, providers and government showcase how apprenticeships unlock opportunity, build skills and drive economic growth. Department for Education analysisestimates apprentices will contribute £25 billion to England’s economy across their working lives.

Minister for Early Education Olivia Bailey said:

These degree apprenticeships give early years staff the chance to build skilled, well-paid and rewarding careers while continuing to do the vital work they do every day for children and families.

High-quality early education can change the course of a child’s life. When we back the people who guide children through those first crucial years, we help build their confidence, prepare them for school and set them up to thrive in the years ahead.

Backing progression and better pay in early years is good for families, good for the workforce and good for our country.

Completing the apprenticeship gives early years staff the skills and status to lead learning, not just support it, meaning they can work within higher staff-to-child ratios and progress into better-paid, senior roles across early years settings.

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

Sophie Hayter, Qualification Lead at Kido Nurseries and Pre-Schools said:

This is a significant and welcome step forward for our sector. By investing directly in the professional development of early years practitioners and providing funding to settings to support, the government is recognising the vital importance of highly skilled educators in shaping children’s earliest experiences.

This funding not only strengthens workforce quality and sustainability, but also ensures more children can benefit from graduate-level expertise during the most critical stage of their development.

This investment is part of the government’s Best Start in Life strategy and supports its long-term ambition to have an Early Years Teacher in every setting, helping address the current shortfall of graduate-level staff across the sector.

It follows the announcement of a record £9.5 billion investment delivering affordable and high-quality childcare places for families all over the country. Working parents can now save up to £7,500 a year through expanded funded hours, supported by clearer guidance to ensure families are not hit with unexpected charges. Funding rates are also increasing above inflation to help nurseries and childcare providers maintain quality as access expands.

More widely, the government is using apprenticeships to unlock opportunity and tackle skills shortages across the country, with a series of announcements this week reinforcing its commitment to high-quality training and clear routes into work.

The government has unveiled a series of further measures during National Apprenticeship Week to expand opportunities across the country.

As part of the government’s education estates strategy announced this week, construction firms working on school building projects will have to show that they are providing opportunities for apprenticeships and T Level students, creating around 13,000 new opportunities.

Further measures announced during National Apprenticeship Week include new pilots to match ‘near miss’ applicants with similar apprenticeship opportunities in their area, alongside a new online platform giving young people clearer, more accessible information about apprenticeships and career outcomes.