Clarification of EYNFF funding guidance

We recently sought clarification of the funding guidance relating to payment of quality supplements to maintained nursery schools (MNS) in England, following a question as to whether it could be considered double funding for an MNS to receive both a quality supplement and the supplementary funding. This was a possibility referred to in 2025-26 guidance, but not in the 2026-27 version.

We have had the following response from the Department for Education funding team:

Local authorities ultimately have discretion in how they design and apply their local early years funding formulae, including decisions about whether and how to use a quality supplement. As part of this, it is legitimate for LAs to take into account the fact that maintained nursery schools receive supplementary funding when considering how their quality supplement should operate. Moreover, LAs do have the flexibility to review their approach when setting rates for the forthcoming financial year so some LAs may choose to take a different approach than in previous years.

In terms of double‑funding risk, we would broadly agree with you in that where a quality supplement is intended to recognise aspects of quality beyond the roll‑in of the historic pay grants, MNSs could still receive both the quality supplement and the MNS supplementary funding without this constituting double funding. Conversely, where a quality supplement has been introduced specifically to replicate or replace the separate pay grants that have been incorporated into core rates and MNS supplementary funding, that would more clearly risk double funding.

It is worth noting that for 2026–27, the Early Years NICs and Teachers’ Pay Grant (EYNTPG) has been rolled into core funding using a simplified methodology. We recognise that this differs from previous years and is intended to streamline the approach. You are correct that the 2026-27 funding operational guidance does not include the reference to potential double funding that appeared in the 2025–26 materials, as unlike 2025–26 and previous years, we have not apportioned the EYNTPG roll‑in between core rates and MNS supplementary funding – it has been rolled into core funding rates entirely. Further details on how the EYNTPG has been incorporated can be found in the 2026–27 technical note.