A front-page article in The Times newspaper claimed that from next April, nurseries would be given up to 10,000 a year for every graduate they recruit to reimburse part of the cost of their salary.
However, a DfES spokesman said that he could not 'confirm or deny' whether such a subsidy would be included in the Transformation Fund.
Details of local authority allocations of the fund and guidance on how the money should be spent are due early this year.
The Government's response to the Children's Workforce Strategy Consultation is also expected within the next month.
In its front-page lead story on 30 December, The Times quoted an unnamed source from the DfES as saying, 'We are very keen to keep the mixed supply of nursery care, with providers from the independent, private and voluntary sectors, but we want more graduates to be in leadership roles. A direct subsidy for their salary is the most effective way to encourage the recruitment of more graduates.'
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