Pre-school Education: Finance
The question
To ask the Secretary of State for Education, whether she plans to increase funding rates for early years provision of three and four year olds.
Answered by Stephen Morgan
As usual, the hourly funding rates will vary between local authorities reflecting the different communities that local authorities serve. However, for the 2025/26 financial year, the national average three and four year-old hourly funding rate of local authorities is increasing by 4.1%. On top of this, eligible children can also attract additional funding through the early years pupil premium.
Early education gives all children, especially disadvantaged children, the best start in life. That is why the department is delivering the largest ever uplift to the early years pupil premium, increasing the rate by over 45% from 68p per hour in 2024/25 to £1 per hour in 2025/26, equivalent to up to £570 per eligible child per year.
Future spending decisions beyond 2025/26 will be announced following the next spending review.
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