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Pre-school Education: Finance

Asked by Freddie van MierloLiberal DemocratDepartment for EducationTabled Answered 2 July 2025UIN 63439

The question

To ask the Secretary of State for Education, what assessment her Department has made of the level of administrative workload placed on early years providers in implementing the early years funding system; and whether she is taking steps to streamline (a) reporting and (b) funding claim processes.

Answered by Stephen Morgan

Local authorities are responsible for paying early years providers to deliver the early education and childcare entitlements. The department does not provide guidance to local authorities on how they pay providers as each local authority will have its own local process for making funding payments.

Local authorities must enter into arrangements with childcare providers for the delivery of free early education and childcare to ensure the providers comply with legislative requirements.

As set out in our statutory guidance, local authorities should be clear in their agreements with providers about how and when providers will be paid and the documentation required from providers in order to receive payment.

The department will continue to work closely with the sector to continue to look at how the system is working, and ensure every child gets the best start in life.

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