Implementation of a Single Funding Formula for Early Years: Interim Guidance

This interim guidance is to support local authorities in developing and implementing their own single local funding formula for early years provision.

In June 2007, the Government announced that local authorities will be required to use a single local formula for funding early years provision in the maintained and PVI sectors from 2010-11. Local authorities are also encouraged to introduce this formula from April 2009 wherever possible.

The single local formula is intended to support the extension of the free entitlement for 3- and 4-year-olds, as well as to address inconsistencies in how the offer is currently funded across the maintained and PVI sectors. This will help to ensure that decisions about funding for maintained and PVI providers are transparent, and based on the same factors. While funding levels and funding methodologies do not have to be exactly the same for all providers, any differences must be justifiable and demonstrable.

Local authorities will also need to be aware of the interim guidance on the extension to the free early education entitlement offer to 25 per cent of 3- and 4-year-olds.