Nurseries: Finance
The question
To ask the Secretary of State for Education, if she will undertake a review of the maintained nursery school supplementary funding formula.
Answered by Stephen Morgan
Additional supplementary funding is provided to local authorities for maintained nursery schools (MNS) in their areas. In the 2025/26 financial year, the initial budget for MNS supplementary funding is £92.6 million, subject to final budget update. The national average hourly rate for MNS supplementary funding in financial year 2025/26 is £5.90, the minimum supplementary funding rate is £5.27 and the cap on the hourly rate is £10.
Changes to the MNS supplementary funding formula were made in the 2023/24 financial year including an additional £10 million investment and an introduction of a minimum hourly funding rate to distribute funding evenly across all local authorities with MNS. At present, there are no plans to review the formula beyond this.
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