
Following the Labour Party’s success in the 2024 general election, a renewed spotlight has been placed on the early years sector, as the new government - back in power for the first time in 14 years - sets out its spending plans and ambitious targets for the years ahead.
In December the prime minister Sir Keir Starmer outlined his “plan for change” - the six milestones that the voting public will measure his government against at the next election.
The plan included a pledge to increase the number of children who are ‘school ready’ at the age of five from two-thirds to three-quarters by the end of this parliament - the equivalent of an extra 40,000 to 45,000 children a year.[1]
The government’s focus on increasing school readiness from 60 per cent to 75 per cent is a positive step forward, helping to equip our future generations with the tools they need to succeed both educationally and personally. And it’s clear that the early years sector will play a vital role in meeting this important target.
However, for a sector which is already under increasing pressure, it’s critical that early years practitioners are given the support and investment needed, to not only meet current targets, but to also respond to new and evolving challenges.
A changing landscape
According to its latest annual report on education spending in England, the Institute for Fiscal Studies (IFS) states that total spending on the free entitlement to early years education and childcare nearly quadrupled between 2001-02 and 2023-24, when it reached £4.1billion in today’s prices.[2]
The early years sector has seen significant change in recent years, in part due to the expansion of free childcare under the Conservative government, set to be extended further by September 2025, and Labour’s pledge to open up an additional 3,000 new nursery places.
This is in addition to changes to government-funded childcare hours. The new measures offer up to 30 funded hours of childcare per week, over 38 weeks of the year, to children aged nine months and over, with the rollout already underway and set to be offered in full by September this year.[3]
According to the Department for Education’s projections, around 70,000 new places and 35,000 additional early years educators will be needed to meet the demand placed on the childcare sector, through the planned expansion of government-funded entitlements.[4]
Rising pressures
The early years sector is responding to these latest government policies amid a backdrop of increasing costs and staffing pressures. In its report, the IFS states that between 2016-17 and 2022-23, providers’ costs grew by 25 per cent - mostly due to staffing, as well as price hikes in energy, rent and food.[5]
From 6 April 2025, providers must also account for additional costs relating to new business tax rules. Changes to employers’ national insurance contributions (NICs) as well as increases to the minimum wage, as set out in Labour’s Autumn Budget, will particularly impact lower-paid workers and childcare settings employing a higher number of staff.
In addition, nursery providers of all sizes are responding to the urgent challenges around SEND provision in early years. Recent reports highlighted that a shortage of special needs support in the sector, combined with rising numbers of children diagnosed with special educational needs, is increasing pressure on childcare providers and schools.[6]
Recent data showed that the number of young people with an education, health, and care plan (EHCP) for SEND in England has soared to the highest rate in six years.[7]
The Autumn Budget announced an additional £1billion in funding for schools to support SEND provision[8], yet no additional support was confirmed for the early years sector, which we know is integral to helping identify children with more complex needs. And in light of the Prime Minister’s new and ambitious targets around ‘school readiness’, it’s critical that this also includes those children who require additional support.
The training solution
With the early years sector facing evolving challenges, the need for a highly-trained, motivated and engaged workforce is vital to help meet future demands.
However, across the sector, staff recruitment and retention remains a key issue. In July 2023, the Education Committee published its report into support for childcare and the early years. In the report, it identified several problems facing the early years workforce, including: recruitment, a lack of professional development, low pay, long hours and low status.[9]
It's evident that these issues could contribute to why many new recruits in the sector do not consider early years as a viable or long-term career option, despite the sense of purpose and personal fulfilment that a role in childcare can bring.
This is where early years apprenticeships can help. By offering new career routes, future progression and on-the-job skills training for both existing employees and new recruits, apprenticeships can help to meet recruitment needs, address emerging skills gaps and ensure excellent staff retention.
And it’s not just applicable to new or younger workers. Open to anyone aged 16 or over, apprenticeships allow employees at all levels to upskill and learn while they work, with a focus on hands-on training. By aiding employees’ ongoing development, apprenticeships can help to identify defined routes to progression and long-term career options.
Looking ahead
By enabling access to apprenticeships, or hiring apprentices as part of their team, nursery providers can develop their staff without any disruption to the business. Training providers work in close collaboration with nursery managers to ensure all teaching can be applied directly to employees’ day-to-day roles, ensuring maximum engagement and results. They can also offer guidance on available funding and grants to support the process.
As a trusted training provider, Shaping Lives builds on two decades of experience in the early years sector, and the successful delivery of tens of thousands of apprenticeships. Through our team’s extensive expertise, learning is accessible and transformative, opening doors to new career pathways at every level.
We’re also the first early years’ educator to introduce a SENDCo specialism available to all learners, after identifying this as a vital step forward to support children and families.
Designed to support and develop the next generation of nursery practitioners, early years apprenticeships must play a vital role in the sector’s future. Through significant investment in training the workforce of tomorrow, we can meet evolving industry demands and better serve the sector. And, in turn, empower educators and their employers to play an important role in shaping the lives of young people.
Visit www.shapinglives.co.uk
[1] Nursery World, (2024) ‘PM sets target of 75 per cent of Reception children ‘school-ready’ in plan for change’. Available at: https://www.nurseryworld.co.uk/content/news/pm-sets-target-of-75-per-cent-of-reception-children-school-ready-in-plan-for-change/ [Accessed 27.01.2025]
[2] Institute for Fiscal Studies, (2025) ‘Annual report on education spending in England: 2024-25’. Available at: https://ifs.org.uk/publications/annual-report-education-spending-england-2024-25 [Accessed 27.01.2025]
[3] Department for Education, (2024) ‘Transparency data: Early years places and workforce need’. Available at: https://www.gov.uk/government/publications/early-years-places-and-workforce-need/early-years-places-and-workforce-need [Accessed 27.01.2025]
[4] Department for Education, (2024) ‘Transparency data: Early years places and workforce need’. Available at: https://www.gov.uk/government/publications/early-years-places-and-workforce-need/early-years-places-and-workforce-need [Accessed 27.01.2025]
[5] Institute for Fiscal Studies, (2025) ‘Annual report on education spending in England: 2024-25’. Available at: https://ifs.org.uk/publications/annual-report-education-spending-england-2024-25 [Accessed 27.01.2025]
[6] Children & Young People Now, (2024) ‘Early SEND support needs going unmet’. Available at: https://www.cypnow.co.uk/content/analysis/early-send-support-needs-going-unmet/ [Accessed 27.01.2025]
[7] Schools Week, (2024) ‘SEND: Number of EHCPs soars by highest rate in 6 years’. Available at: ‘https://schoolsweek.co.uk/send-number-of-ehcps-soars-by-highest-rate-in-6-years/ [Accessed 27.01.2025]
[8] UK Parliament House of Lords Library, (2024) ‘Special educational needs and disabilities: Government support’. Available at: https://lordslibrary.parliament.uk/special-educational-needs-and-disabilities-government-support/ [Accessed 27.01.2025]