In exciting news this morning the media is reporting that the Federal Government is allocating $300 million over two years to boost the salaries of early childhood education and care workers.

The Australian Financial Review is reporting that this will lead to a 15 per cent increase for educators (or around $3 per hour for Certificate III qualified staff with higher increases for more qualified staff).

Reports indicate that the Government will today announce the establishment of an early years quality fund to fund the pay increases and to support child care services as they implement the changes required under the NQF.

Speaking to The Australian, Childcare Minister Kate Ellis said:

"This fund will further promote our early childhood and child care priorities by making sure centres show a demonstrated commitment to affordability for families through fee restraint."

Full details haven't yet been released by the Government but as far as we understand the changes will take effect from 1 July 2013. Child care providers will need to apply to receive money under the fund and will have to be operating in accordance with the NQF qualification requirements.

According to The Australian child care providers must also agree to improved fee transparency for families, including the level of financial assistance provided by the Gillard government through the Child Care Benefit and Child Care Rebate. They will also need to have an Enterprise Bargaining Agreement in place.

In response to the reports CEO of the Community Child Care Cooperative Leanne Gibbs said:

"This is not just a win for educators and services, but also, ultimately a win for children. We know children need continuity of highly qualified educators. Pay rises will help services recruit and retain skilled and qualified educators."