The Edinburgh Childcare Partnership's Workforce Development Initiative, backed by the Scottish Executive, carried out research which showed that 47 per cent of the city's 3,500 childcare workers needed training.
The SSSC has set a deadline of 2006 for childcare workers to be registered and 2009 when they must either have obtained or be working towards a qualification.
Welcoming the European funding, which will allow staff access to free training and bursaries for some courses, Childcare Partnership manager John Heywood said, 'It is important, not only for the childcare sector but for effective economic growth within Edinburgh, that there is a stable and qualified childcare sector.
'The SSSC requirements represent a move to a much-needed standard, yet without this funding employers would find it difficult to meet the costs incurred.'
Sam Hurst, manager at the Little VIPs nursery in the Portobello district of the city, said, 'We have 50 per cent unqualified and we need support to get to 100 per cent qualified.'
Liz Gallacher, owner of the Heriot Hill Nursery, said that nearly all her 40 staff are undergoing training. She said, 'I need funding for my staff to be able to gain Level 4 management qualifications.'
The initiative is being funded from European Structural Funds. Heather Smith, the Partnership's workforce development manager, said, 'We are offering support all the way through.'
The funding will also enable a more concerted effort to increase the childcare workforce with joint working between the careers guidance service and Edinburgh's new childcare training academy (News, 24 June), which Ms Smith said had been 'inundated' with calls.