Decision details

Local Authorities are required to consult with early years providers and Schools Forum with any proposed changes to their Early Years Funding Formula. Under very tight DfE timelines, a consultation took place between 19 December 2025 and 25 January 2026. Taking into account the outcomes of the consultation proposals, the decisions were supported by Schools Forum on 6 February 2026 and approved by Cabinet on the 10^th February 2026.  This will be implemented from 1 April 2026.

1.    Increase the amount retained centrally by £81,184 this includes £42,884 to reflect the anticipated impact of the local authority pay award (3.5%) for each of the local authority support teams and £43,300 to increase resources in the Free Early Education Funding Team to support changes in the early years funding system and associated local authority duties. (Note: During the provider consultation events there was discussion about the admissions element of the miscellaneous central retention. As a result, in the final proposals the Early Years Block contribution to the Pupil Admission function has been removed, making £5,175 extra per year available to distribute to providers.

2.    Retain a contingency fund of 1% from each funding stream. The contingency fund is set aside to reduce risk of an overspend and will be paid to providers in the final term of the financial year if sufficient funds are available.

3.    From April 2026, change the number of funded weeks that are used to calculate funding for providers in the summer and spring terms to align with the number of funded weeks the Department for Education (DfE) use to calculate the early years block funding for local authorities.

4.    Transfer £500,000 from the Early Years Block to the High Needs Block in 2026-27 to support financial sustainability as per the Safety Valve Agreement with the Department for Education.

5.    SENDIF budget to remain at £3 million, (plus £105,000 for inflation), which includes a £2 million contribution from the Early Years Block and £1 million contribution from the High Needs Block.