September 2023 funding rates for early years

Posted on 13 July 2023 in News and updates

Dear Provider,

Last Friday, the Department for Education (DfE) published details of the Early Years Supplementary Grant which outlined the increases in each of the Early Years Funding streams from September 2023.

The funding increases must be passed on to providers in full via the Early Years Funding Formula. We are pleased to advise that the funding will increase as follows from September 2023:

  • 3- and 4-year-old funding rate – from £4.56 to £4.90
    A 7% increase in the hourly rate which includes the existing 4p per hour for Universal Deprivation and 6p per hour for Universal SEND added to the £4.46 base rate. The 34p increase is 32p of the 33p increase from the DfE, plus 2p from the Teacher Pay & Pensions Grant (TPPG). The other 1p from the DfE increase has been added to the Individual Inclusion Funding.
  • 2-year-old funding rate – from £5.34 to £7.16
    A 34% increase in the hourly rate. This now includes a Universal SEND rate of 6p added onto the £7.10 base rate. The other 2p from the DfE increase has been added to the Individual Inclusion Funding.
  • Early Years Pupil Premium (EYPP) – from 62p to 66p
    EYPP is only paid on the universal 3 & 4 year old funding, it is not paid on any hours claimed for the Extended Entitlement (30 hours)
  • Disability Access Funding – from £828 to £881 per year (pro rata for school starters)

We are aware of the challenges that some settings are facing in terms of increasing costs and staff retention. We hope the increases in funding rates will go some way towards supporting individual situations and staff recruitment when planning for the roll out of the new entitlements from 2024.

Early Years Entitlement Funding Team