Insiders say the plan, which is set to be published alongside the Chancellor's Pre-Budget Report on 2 December, may follow New Zealand's goal of creating a graduate-qualified workforce within 10 years.
It is also likely to feature some form of direct funding to providers linked to improvements in quality, a key element of New Zealand's Early Childhood Education strategic plan.
New Zealand's Ministry of Education has pledged to increase investment in the sector by 50 per cent by 2012. And early years experts said the UK would also have to look at significantly boosting expenditure.
Stephen Burke, director of the Daycare Trust, said: "New Zealand is a good parallel both in terms of where they've started from and how they're approaching it with the 10-year strategy."
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