The government has also committed in principle to extending the fund until at least 2015. In The Children's Plan, Children's Secretary Ed Balls announced £175m for the fund until 2011.
New guidance sent by the Department for Children, Schools and Families to local authorities and childcare providers said a further £57m would be announced in May. The money will replace the Transformation Fund and will be used to help get a graduate heading every early years setting by 2015.
It is expected local authorities will pass on the money to private and voluntary sector childcare providers.
"Providers are free to use the grant as they wish but may want to consider using it to contribute to salary costs for newly-employed or existing graduates," the guidance said.
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