Question to the Department for Education:

To ask the Secretary of State for Education, whether the Government has made an assessment of the potential impact of differences in local authority funding formulas on access to high-quality early years provision in disadvantaged communities.

The department expects to spend over £8 billion on early years entitlements in 2025/26, distributed through the early years national funding formulae (EYNFF), based on hourly funding rates for each local authority. The EYNFF reflects the relative needs of the children and costs of delivering provision in that area and includes additional needs factors that account for 10.5% of entitlement funding.

Eligible children also attract early years pupil premium (EYPP), to improve the educational outcomes of socio-economically disadvantaged children. We are delivering the largest ever uplift to the EYPP this year, increasing the rate by over 45% from 68p per hour in 2024/25 to £1 in 2025/26, so the EYPP is equivalent to up to £570 per eligible child per year.

Local authorities are responsible for funding providers in their area using their own local funding formula. These local formulae must include a deprivation supplement for 3 and 4-year-olds.