NFER: The Early Years Workforce in England Annual Report 2026
The National Foundation for Educational Research (NFER) recently published its 2026 annual report of the early years workforce in England. The findings compare the early years workforce with “similar workers” using data from workers in other industries with similar demographics, qualifications and working patterns (including care, retail, administration among others).
Workforce numbers
Workforce numbers appear to have plateaued – despite growing by around 20,000 between 2023 and 2024, the workforce increased by just 600 between 2024 and 2025 (not accounting for joiners over summer). Certain regions including the South West, West Midlands and the North East are experiencing more significant staff shortfalls. The government previously estimated that an additional 35,000 staff would be needed to deliver the expanded childcare entitlement in England so the latest data raises concerns about the workforce not growing fast enough to meet demand.
Qualifications
Qualification levels in the early years workforce remain low, with more limited opportunities for career progression than similar workers in other sectors. Only about a quarter of the workforce holds a Level 4 or above early years qualification. Higher qualified early years staff are also less likely to report opportunities for career progression compared to other sectors, leading to concerns about incentives to upskill and progress.
Looking at the childminder workforce, 24% are qualified to level 2 or below. Note that in 2024 the Department for Education removed the requirement for childminders on the Early Years Register to have a formal early years qualification.
Pay
Early years pay is considerably low (around 30% lower compared to similar workers) and this gap is especially pronounced for those early years staff who are more highly qualified.
Staff wellbeing and job satisfaction
The early years workforce reports higher wellbeing and satisfaction compared with similar workers in other sectors: with lower levels of anxiety, higher life satisfaction and happiness, a sense that what they do in life is worthwhile and significant. Workplace culture and inclusivity was also higher than workers in other sectors.
Ka Lai Brightley-Hodges, Head of Coram PACEY comments:
“The latest report from NFER makes clear that the early years sector is being sustained by a skilled, committed and passionate workforce despite the ongoing challenges and barriers around pay, funding and career progression. Early years work is unique and profoundly rewarding, and it is positive to see this morale reflected in the data: many early years professionals report high job satisfaction, a sense that their work is worthwhile, and real fulfilment in supporting children and families.
“Imagine what could be achieved if this dedicated workforce were matched with stronger support from Government to raise pay, progression and professional recognition to reduce recruitment and retention challenges, enabling the workforce to grow and thrive.”
Early Years Alliance survey
Today (4 March) the Early Years Alliance published its own survey findings of over 1,000 early years providers highlighting significant challenges with staffing and funding pressures.
When asked about funding rates, 85% of those offering three- and four-year-old funded places say their current funding rate is lower than the cost of delivering places. On SEND provision, 86% of those caring for a child with SEND stated that the SEND funding they receive is not enough to provide the quality of care they want to provide for children with SEND at their setting.
Read more findings on the Early Years Alliance website. Thank you to Coram PACEY childminders who took part in the survey to share your insights.
