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Low pay and poor career progression holds back early years childcare workforce – NFER

Only 49% of early years staff said there were opportunities for career progression, compared to 57% among similar workers. 

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Low pay and poor career progression holds back early years childcare workforce – NFER
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Low pay and limited career opportunities made it hard to recruit and keep staff in the early years workforce, according to research from the National Foundation for Educational Research (NFER).

Research showed that this could have held back the Government’s plan to double free childcare hours for working families with children aged nine months to three years.

From today, eligible working families could claim 30 hours of free childcare, up from 15 hours, for children under three. 

In October 2024, the Government said 35,000 more staff would be needed by September 2025 to cover the extra demand. 

The research found the workforce had been growing quickly enough to meet this number if the current trend continued, but providers struggled and further growth could have been more difficult. 

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There were also likely to be regional shortages, but Government data did not show where the worst gaps were.

The early years workforce grew by 12% between 2021 and 2024, after a 5% drop linked to the pandemic. 

The growth mainly came from group-based providers, while childminder numbers fell by 8,000 over the same period. 

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Despite national growth, 59% of providers in a July 2024 survey said not having enough staff was the main challenge in delivering new funded places.

In 2022/23, early years staff earned on average 36% less than similar workers with the same experience and hours. 

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Median hourly pay was £5 lower than the England average, and 46% of providers said they had to increase pay to try to keep staff.

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Retention was a major challenge, especially for group-based providers. 

In 2024, turnover among staff in group-based providers was 16%, twice the rate in school-based settings at 8%. 

Lower-qualified staff had higher turnover, with those without a level 3 qualification making up 20% of the workforce but 41% of leavers.

Only 49% of early years staff said there were opportunities for career progression, compared to 57% among similar workers. 

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Those qualified to level 2 or below were even less likely to agree. 

Pay progression was limited, with the highest-paid quarter earning only 24% more than the lowest-paid quarter.

Early years staff generally reported high wellbeing and said their work was worthwhile. 

In 2022/23, they said they were happier on average than similar workers. 

However, those with higher qualifications, such as level 4 or 5, reported more anxiety and felt their work was less worthwhile. 

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The report said more research was needed to find out why.

Jack Worth, education workforce lead at the NFER, said: “The early years landscape is undergoing significant changes and increasing pressures. 

“It is critical that workforce challenges in the sector are addressed, so that it can be both attractive enough to recruit new staff and also retain a higher level of staff, to ensure it can meet the demands of the expanded free childcare entitlement.

“Delivering impactful early education and care will give our children the best start in life and support better outcomes.” 

Worth added: “Investment in further research and high-quality data is needed to allow the Government to make effective future policy decisions.”

The report recommended the Government increased funding rates so providers could offer better pay and reward higher qualifications. 

It also said the Government should have quickly put its career pathway and professional development plans in place. 

Additionally, the report called for more detailed research and regional data on the workforce and urged providers and the Government to promote the sense of fulfilment and positive working environment in the sector.

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