Question to the Department for Education:

To ask the Secretary of State for Education, what plans she has to review early years funding policy to help ensure it is fit for purpose for rural and shared-setting providers.

In 2026/27, the department expects to provide over £9.5 billion for the early years entitlements, more than doubling annual public investment in the early years sector compared to 2023/24, as we help deliver the government’s Plan for Change and the ambition for a record proportion of children to be starting school ready by 2028.

To ensure that the early years funding system is hardwired to benefit those children and parts of the country that have higher levels of additional need, the department will review early years funding, including national funding formulae, and consult the sector on changes by Summer 2026.

As part of their local formulae, local authorities can make use of supplements for up to 12% of the total value of planned formula funding to providers for each of the entitlements. This means that local authorities can tilt part of the hourly rate to different providers in an area to reflect different needs and circumstances at provider level. The allowable supplements include a rurality and sparsity supplement that local authorities have the discretion to use.