Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the potential impact of the equity of the Early Years funding formula on families and childcare providers in Sheffield.

Answered by Olivia Bailey - Parliamentary Under-Secretary of State (Department for Education) (Equalities)

The department uses the early years national funding formulae (EYNFF) to allocate early years entitlement funding to local authorities in a fair and transparent way.

The formulae ensure each area receives a base rate for each age group individually, regardless of location or individual need. On top of this, additional needs funding is allocated to reflect the proportion of children in each area who are disadvantaged, have English as an additional language, or have more complex special educational needs, recognising the higher costs of supporting these groups. An area cost adjustment is also applied to account for local variations in staffing and premises costs.

Through this approach, the department aims to ensure funding reflects children’s needs and local cost pressures throughout England, including in Sheffield.

We have committed to reviewing early years funding, including the national funding formulae, to ensure funding continues to match needs. We will consult the sector on changes by summer 2026.

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