New edition of Birth to 5 Matters launched
The Early Years Coalition has launched the updated and expanded second edition of Birth to 5 Matters (Bto5M), non-statutory guidance for the Early Years Foundation
The Department for Education has published its early years funding allocations for local authorities for 2025-26, including increasing Early Years Pupil Premium from 68p to £1 per hour, raising the annual funding rate per child from £388 to £570. We welcome move to close the gap between pupil premium in the early years and in schools, although a significant difference remains with the rate for primary pupils being £1,480. We hope this is a first step to equalising the funding. The additional EYPP funding is expected to total £25m.
The allocations of funding for local authorities will rise by an average of 3.4% for under 2s (an average of hourly rate of £11.54), by 3.3% for 2-year-olds (to £8.53) and by 4.1% for 3- to 4-year-olds (£6.12). Local authorities will be required to publish their rates by 28 February, addressing the concerns of providers of needing certainty in order to budget for the 2025-26 financial year starting in April 2025. The pass through rate will also increase from 95% to 96%.
The added increase to the 3-/4-year-old rate is particularly welcome, as this is where the gap between income and costs is greatest for the sector, although it is unlikely to be sufficient. Although the formula is designed to reflect inflationary costs based on CPI, average earnings and the National Living Wage, it does not include the recent increase to employer’s National Insurance Contributions (NICs). While we welcome the confirmation that additional funding will be provided to cover the cost of the increased NICs for schools, it is not equitable that PVI settings and childminders who employ assistants will not receive equivalent support for delivering the same publicly funded entitlements. We await further details of how schools will receive the additional funding.
MNS supplementary funding is expected to total £92.6m, up from £76.5m in 2024-25, including £7.9 million of funding in respect of increases to teachers’ pay from September 2024, but not including the funding to cover NICs, arrangements for which are expected to follow later. We welcome this uplift which is vital to cover the additional costs of maintained nursery schools, as we know many are already struggling to cover the cost of their high quality, inclusive provision.
We also welcome the news that an additional £75m in revenue has been allocated to support the expansion of the early years entitlements and look forward to more detail of how this will be allocated.
The Early Years Coalition has launched the updated and expanded second edition of Birth to 5 Matters (Bto5M), non-statutory guidance for the Early Years Foundation
The Department for Education (DfE) have today launched a consultation on proposed changes to the early years funding system. It runs until 14 September 2026.
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The letter below sets out our key asks for the next government.
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We welcome the news that our President, Professor Cathy Nutbrown, has been made a Dame in the year’s New Years Honours list. This is much
