The decision to withdraw funding from the CWDC and for the Department for Education to take over its key functions was announced by children's minister Sarah Teather at the Daycare Trust conference.
The childcare sector reacted with disappointment and questioned whether the move showed a lack of commitment to having a graduate-led early years workforce.
Pamela Calder, chair of the Early Childhood Studies Degrees Network, said, 'We do not yet know what the implications of this will be. The Government hasn't said it is going to withdraw funding for the work that the CWDC were doing. Sarah Teather said that there was still a commitment to having a graduate-led workforce, but there has been no indication that there will be the funding to provide it.
'We are waiting to see what this means for both EYP Status and QTS. What we have always wanted to see is a greater link between EYP Status and QTS, with similar pay and conditions.'
John Chowcat, general secretary of the Aspect union, said, 'The great strides made in recent years have been founded on the professional development of a full range of discrete skills. CWDC has been critical to this development, and in the context of the widely understood need to consolidate the delivery of children's services, this decision is a mistake.
'This decision will hinder the close working of both the different agencies in children's services and inhibit professional development. It will make the work of children's services managers and professionals even more difficult at a time when cuts in local authority funding will raise new problems'.
A spokesperson for the DfE said that the Government was still committed to having an EYP in every setting by 2015.
News on what will happen to the Graduate Leader Fund after March 2011 is expected soon.
We're still in business, says CWDC chair
Chair of the Children's Workforce Development Council, Sir Paul Ennals, defended the organisation.
'We've collectively moved a long way in the last few years. Before 2005 there wasn't a structure for supporting and upskilling the early years workforce. Now there are 5,800 EYPs and another 3,500 in training. We're moving rapidly towards an early years sector as graduate-led,' he said.
'The idea that drove a lot of work was research that showed that a well-qualified workforce drives outcomes. Good-quality qualifications are the best way for improving outcomes for children. Before 2005 this idea was far from universal. We've changed the mood and the expectation, but we're nowhere near finished.
'By April 2012 many of the key functions (of CWDC) will be within the department. We don't know for sure what will happen for EYPs and the minimum level 3. There might be a scaling back of EYP numbers due to budgetary constraints. There's been a rapid rate of upskilling the early years workforce, which will slow, but we very much hope it won't stop. We've also done a lot of work rationalising workforce qualifications.
'CWDC remains a company driven by the needs of employers and representing the workforce. In the next 15-18 months we're looking to see if we can continue to support employers. The message we get is that employers still need support. Leaving the sector without a support structure would be unwise. We will still be in business next year.
'The future of the CWDC unquestionably will be different. We know its status will change and we don't know what will remain after 2012. The Government can't close us down but can limit our power and status. We've always had some funding from employers as a sector skills council and we will be exploring this. It's not yet clear what's feasible but we're clear about the principles of integrated working and a flexible, adaptable, skilled workforce. We're absolutely committed to a well-qualified workforce.'