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Early Years Funding 2025-26
10 December 2024
Type
Written Ministerial Statement
Department
Department for Education
At a Glance
Issue Summary
The statement discusses the government's plans to increase early years entitlements funding in 2025-26 and expand childcare provision.
Action Requested
The government will provide over £8 billion for early years entitlements, with an additional £75 million investment through an expansion grant. The minimum pass-through requirement for local authorities is increased from April 2025, and local authority core funding rates are set to increase by up to 4.1%. Local authorities must communicate their funding rates to providers by February 28th, 2025.
Key Facts
- The government expects to provide over £8 billion for early years entitlements in 2025-26.
- An additional £75 million of revenue funding will be invested through an expansion grant.
- Early years pupil premium rates are increasing by over 45% per hour, up to £1 per hour in 2025-26.
- Local authority core funding rates for the 3- and 4-year-old hourly funding is increasing by 4.1%, while the 2-year-old rate increases by 3.3%.
- The minimum pass-through requirement for local authorities will increase to at least 96% from April 2025.
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