This is to inform early years providers of the early years single funding formula (EYSFF) for 2025 to 2026. This applies to both the universal 15 hours early years free entitlement (EYFE) and the extended 15 hours entitlement to EYFE as well as funding for disadvantaged 2 year olds and children from the age of 9 months in eligible working families.
Early Years Pupil Premium (EYPP), Disability Access Fund (DAF) and funding for 2 year olds will be allocated separately.
The structure of the formula is set out below and was agreed by the Schools’ Forum in February 2025. The base rate is a 3.7% increase on the rate of £5.15 per hour for 2024 to 2025. The deprivation supplements are an increase of 7.1/11.1% on 2024 to 2025, which were £1.40 and 90p.
| Basic hourly rate | + hourly supplements | x number of hours of participation | + other supplements |
|---|---|---|---|
| £5.33 per hour | For deprivation of £1.50/£1 per hour for qualifying children | The method of counting is the same for all providers and takes place each term | Quality lump sum or quality supplement for qualifying providers |
Basic hourly rate (estimated 94.2% of the total budget)
There is a base rate of £5.33 per hour.
Deprivation: (3.4% of the total budget)
Deprivation (estimated 3.9% of the total budget)
There is a deprivation supplement of £1.40 per hour for every child who lives in one of the most deprived 0 to 10% areas according to the Income Deprivation Affecting Children (IDACI) Index.
There is a deprivation supplement of £1.50 per hour for every child who lives in one of the most deprived 0 to 10% areas according to the Income Deprivation Affecting Children (IDACI) Index.
There is a deprivation supplement of £1 per hour for every child who lives in one of the most deprived 11 to 20% areas according to the IDACI Index.
The total amount that the setting will receive will be allocated on the basis of the child data submitted at headcounts during the financial year.
Quality (estimated 1.9% of the total budget)
There is a quality supplement lump sum of up to £4,000 to providers in the private, voluntary and independent sectors with a staff person leading practice who is an Early Years Teacher or Early Years Professional (EYT/EYP). The lump sum payment will be paid on a sliding scale, depending on the number of three and four year old children receiving their EYFE at the setting in the summer term 2025.
The quality lump sum is paid where an EYT/EYP is employed by the setting at the start of the 2025 to 2026 financial year and evidence of this is provided by 16 May 2025. The payment will not be paid if an EYT/EYP joins the setting later in the financial year.
Quality supplement of 64p per hour to maintained schools with nursery classes where there is a qualified teacher leading practice who is a member of the teachers’ pay and pension scheme. Maintained settings are not eligible for the quality lump sum.
The structure of the formula is set out below and was agreed by the Schools’ Forum in February 2025. The base rate is a 3.5% increase on the rate of £8.50 per hour for 2024 to 2025.
| Basic hourly rate | x number of hours of participation |
|---|---|
| £8.80 per hour | The method of counting is the same for all providers and takes place each term |
Deprivation supplement of 15p per hour is paid for disadvantaged 2 year olds.
The structure of the formula is set out below and was agreed by the Schools’ Forum in February 2025.
| Basic hourly rate | x number of hours of participation |
|---|---|
| £12.45 per hour | The method of counting is the same for all providers and takes place each term |
The local authority has a Special Educational Needs Inclusion Fund (SENIF) to provide additional support to children with SEND to attend early years settings. The SENIF for 2025 to 2026 is £1,478,033.
The rate for additional support is £11.42 per hour for EYFE hours for PVI providers and £15.03 per hour for EYFE hours for maintained and local authority providers
DAF is £938 per year. Providers will be asked to provide information and evidence regarding eligible children through the provider portal. DAF is applied to eligible children of all ages. Payments are made once a term. Eligibility for DAF is set out in the DfE’s Operational Guidance.
The indicative budget/ready reckoner provides an estimate of the level of EYFE funding for the universal 15 hours per week (38 weeks per year) for the financial year April 2025 to March 2026, as well as the extended 15 hours per week for 3 and 4 year olds, disadvantaged 2 year olds, 2 year olds from working families and 9 month olds from working families.
The basic hourly funding is based on actual child attendance at each provider in the previous year.
The funding each provider will receive will be based on the actual child attendance at the headcount dates. The headcount dates will be the same for all providers. For 2025 to 2026 these are provisionally:
Providers will be asked to make their termly headcount submissions through the Synergy portal.
Provisional payment dates for the 2025 to 2026 financial year are week commencing:
This arrangement should reflect actual take up of EYFE through the financial year while at the same time ensuring that providers are in receipt of a sufficient level of payment at the beginning of each term to protect sustainability. Please note adjustments made for variations in hours are calculated at the basic hourly rates.