The money will come from the 250m Transformation Fund, which runs from 1 April this year to the end of August 2008.
The Government has also published its response to the Children's Workforce Strategy consultation.
Ms Hughes said that 52m of central funding would be used to develop training for Early Years Professionals and cover the cost of fees, bursaries, mentoring and supply cover.
The remaining funding, apart from 3m for evaluation, will be distributed to local authorities to provide recruitment incentives to private and voluntary sector daycare providers to employ graduate professional leaders and raise the level of qualifications for non-graduate staff.
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