Allocated funding

Government sets the rate of Early Years Pupil Premium as part of the allocation of early years funding annually.

How EYPP works

Children who are 3 and 4 and who meet the eligibility criteria are funded at a rate of 53p an hour which equates to £302.10 per year (up until 2021-22, and from 2022-23 this increases to 60p per hour or £342 per year).  EYPP is payable only on the universal 15 hours entitlement and not on the additional 15 hours entitlement for working parents.

Eligibility criteria are that families need to get one of the following:

• Income Support
• income-based Jobseeker’s Allowance
• income-related Employment and Support Allowance
• support under part VI of the Immigration and Asylum Act 1999
• the guaranteed element of State Pension Credit
• Child Tax Credit (provided they are not also entitled to Working Tax Credit
  and have an annual gross income of no more than £16,190)
• Working Tax Credit run-on, which is paid for 4 weeks after they stop
  qualifying for Working Tax Credit
• Universal Credit (household income must be less than £7,400 a year after
  tax, not including any benefits—this is assessed on up to 3 of the parent’s
  most recent Universal Credit assessment periods)—further guidance on
  checking eligibility is set out below
• they are currently being looked after by a local authority in England or
  Wales they have left care in England or Wales through:
  • an adoption order
  • a special guardianship order
  • a child arrangements order

Eligibility will need to be checked annually to ensure circumstances haven’t changed.

EYPP funding will follow the child.

EYPP is paid by the local authority where the child receives the early education and not where they live.

If a provider is delivering the entitlement for 3 and 4 years olds they are eligible for the EYPP.  However, the statutory guidance is clear that the Local Authority should secure alternative provision and withdraw funding from the provider (other than in a maintained school), as soon as is practicable, when Ofsted publish an inspection judgement of “Inadequate”. However, until the funding has been withdrawn the provider will be eligible for EYPP.  

Children who are looked after 

EYPP for these children gets paid to virtual school head (VSH) who will allocate it to providers.
Some of the funding may be pooled to benefit a group of children.
VSH and provider to work together to decide how the money will be spent to maximise impact and information will be needed to complete return.
EYPP cannot be used to provide anything the LA is currently funding

DfE information about Virtual School Heads responsibility for EYPP