Consultation on early years funding in England focuses on SEND and disadvantage
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.
HMRC has provided guidance for early years providers on their eligibility to claim employment allowance. This confirms that settings which are currently eligible to claim Employment Allowance to cover employers’ National Insurance Contributions (NICs) will continue to be eligible after 6 April 2025 when new provisions come in.
There had been confusion as to whether income from the funded entitlements would impact on eligibility, and the guidance confirms that will not be the case for the majority of providers. The increase in Employment Allowance will help to mitigate the increased NICs contributions for small providers, but larger providers will still see these rise significantly.
The guidance can be read or downloaded below.
£25m has been allocated to cover the cost of NICs rises relating to early years in schools and will be distributed by local authorities.
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 urge members to respond to the two DfE consultations on funding and ratios which close on 16 September. For information, you can view the
