DfE Announce New Employer Grant to Boost Quality in Early Years Education

Staffing pressures. Training costs. Not enough time to do it all. If you work in early years, this will sound familiar. It can feel hard to improve quality when budgets are tight and the day is already full.

The good news is that there is a new way to upskill without stepping away from children.

A fresh employer grant and a paid degree apprenticeship will let your team earn while they learn and lift outcomes where it counts most.

Key Takeaways

  • A new Early Years Teacher degree apprenticeship will support 400 staff to earn while they learn in nurseries and early years settings.
  • The package includes a £3.2 million employer grant with £9,000 per apprentice each year to cover training costs.
  • Employers also receive £8,000 per apprentice to help with backfill, training and National Insurance, passed on via providers.
  • Graduates in early years roles earn about £5.50 more per hour than staff trained to A-level standard.
  • For every 10 percent increase in settings employing a graduate, the share of children reaching a good level of development rises by around 1.2 percent.
  • Completing the apprenticeship gives staff the skills and status to lead learning and work within higher staff-to-child ratios.
  • DfE analysis estimates apprentices will add £25 billion to England’s economy across their working lives.
  • The move supports recruitment, retention and quality across the sector nationwide.

DfE Announce New Employer Grant To Boost Quality In Early Years Education

The Department for Education has set out a practical route to raise quality from inside your setting. The Early Years Teacher degree apprenticeship lets your team study at degree level, stay on the job and grow into leadership roles.

It means more expertise on the floor, more stable staffing and a stronger pipeline for the future. The grant helps remove the financial friction that usually blocks progress.

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.

You can read more background on the strategy at the government site if you wish to explore the context behind today’s funding move.

How The Funding Flows

The total package includes £3.2 million to support employers. The programme contributes £9,000 per apprentice each year to cover training fees.

On top of that, employers receive £8,000 per apprentice to help with backfill, training time and National Insurance costs.

The £8,000 support grant is paid to providers, who then pass it straight on to settings employing the apprentice.

In short, the programme aims to ensure no provider is out of pocket for doing the right thing.

Your staff keep their roles, your ratios stay safe, and your quality rises as skills grow. It is tidy, targeted help at the exact pressure points we all know too well.

Why Raising Qualification Levels Lifts Outcomes

High-quality early education changes lives. The evidence shows a clear link between staff training and child development.

When more graduates work in a setting, more children reach a good level of development at the end of the early years. The numbers help tell the story.

For every 10 percent increase in settings employing a graduate, the share of children meeting a good level of development rises by around 1.2 percent.

That is real progress for real children. There is also a strong career case. DfE data shows that those with degree-level early years qualifications earn around £5.50 more per hour than staff trained to A-level standard. Better skills can bring better pay and better outcomes at the same time.

What Changes In Practice

Completing the apprenticeship gives staff the expertise and status to lead learning, not just support it. That can allow higher staff-to-child ratios where appropriate under the EYFS, which helps you plan rotas with more confidence.

Think of it like upgrading your in-house coaching team. The play stays the same, but your team reads it better and moves faster.

A Real-World Scenario

Picture a 60-place nursery with two talented room leaders who want to progress. Both join the degree apprenticeship.

The programme funds their training fees and provides £8,000 each to ease backfill and release time. They continue to work with their key children, learn on the job and bring new practice ideas into daily routines.

Within a year, baseline assessments are more consistent and transitions into Reception run smoother. Families notice the difference because staff now explain the learning behind the play with real depth.

Degree Apprenticeship Versus University Route

Many of us ask the same question: do we choose the work-based route or send staff to university? Here is a quick view that focuses on cost, impact and pace.

Quick Comparison

For many settings, the work-based route wins on access, cost and impact. Staff keep their connection with children, and you build a culture of learning across the team.

If you like a neat analogy, it is the slow cooker of workforce development. You keep the heat steady and let the quality deepen over time.

What Leaders Are Saying

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.

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

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.

Wider Context From National Apprenticeship Week

This announcement lands as National Apprenticeship Week closes, highlighting how apprenticeships unlock opportunity and build skills. DfE analysis estimates apprentices will contribute £25 billion to England’s economy across their working lives.

The government has also asked construction firms working on school projects to provide opportunities for apprentices and T Level students, creating about 13,000 new placements.

New pilots will match near-miss applicants with similar local opportunities, supported by an online platform that explains pathways and outcomes more clearly.

Alongside this, there is a record £9.5 billion for childcare expansion to help families access more affordable, high-quality places.

Funding rates are rising above inflation to help providers maintain quality as access grows. Clearer guidance aims to stop unexpected charges hitting parents.

The aim is simple. More access, strong quality and a stable workforce.

Who Can Apply And What To Expect

  • Places: 400 staff members will be able to start the Early Years Teacher degree apprenticeship.
  • Setting types: Nurseries, pre-schools and other early years providers can employ apprentices on this route.
  • Funding split: £9,000 per apprentice each year for training fees, plus £8,000 per apprentice to support backfill, training time and NI.
  • Delivery: Apprentices remain employed and learn on the job with planned release for study and assessment.
  • Progression: Graduates can lead learning, work within higher ratios and progress into senior roles.
  • Impact: Expect stronger curriculum intent, sharper assessment and better school readiness.

What Employers Need To Do Next

Start with your workforce plan. Identify staff with the passion and potential to lead learning. Map your room rotas and term dates to plan release time.

If you use the Apprenticeship Levy, ringfence the budget for these places and check deadlines so nothing lapses quietly in the background.

Gather evidence of the impact you want to see. Target areas like communication and language, curriculum sequencing, or SEND practice.

Then set simple measures so you can track results. Yes, you can still keep your lanyard and clipboard. They pair nicely with data you actually use.

If you want the policy details, the National Apprenticeship Week round-up on Gov.uk is a handy overview of how apprenticeships are being used to ease skills gaps and widen access.

It also shows the range of sectors stepping up to host new placements.

Explore National Apprenticeship Week on Gov.uk

How Eden Can Help

If you are ready to move, choose partners who understand early years inside out. Replace the generic training provider approach with a practical route.

Speak to Eden about onboarding, compliance and day-to-day support, then register interest in the degree offer for Early Years Initial Teacher Training.

We can guide levy use, recruitment and the rhythm of on-the-job learning so your setting stays steady while quality rises.

We keep this simple. You focus on your children and families. We help you put the right people on the right pathway at the right time.

A Final Word On Impact

This package is not a quick fix, but it is a smart one. It gives staff a paid route to graduate status, helps employers protect ratios and puts more expert practice in front of children.

That is the point. Better trained adults create richer learning, calmer rooms and stronger starts for every child.

If you want a source for the strategy behind all this, you can find it here: The Best Start For Life

Ready to build your pipeline of Early Years Teachers and boost quality across your rooms? Let’s get your team on the degree apprenticeship.

Talk to Eden about next steps and ask about the EYITT degree offer so your staff can earn, learn and lead where it matters most.

Kathy
Leatherbarrow
Early Years Consultant
Kathy Leatherbarrow is an experienced early years consultant with over 25 years in the field. She excels in improving childcare quality, mentoring staff, and exceeding Ofsted standards. Kathy is committed to providing every child with the best start in life.