Bishop Auckland College has joined two other colleges to develop a centre of excellence in Childcare.
The Centre of Vocational Excellence (CoVE) for childcare will serve Tyne Metropolitan College and Stockton Riverside and will be based at Bishop Auckland.
The new project will offer students appropriate qualifications and skills and excellent career prospects.
Linda Harrison, who is on secondment from the regional Learning and Skills Council, will oversee the work.
She said: "The Childcare CoVE will address challenges of increasing growth in the childcare industry at the heart of the Government's agenda.''
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