Inclusive Early Years Fund (IEYF) 2026–27

Posted on 11 June 2026 in News and updates

The Department for Education (DfE) has announced new support for inclusive practice in early years settings. This includes the Inclusive Early Years Fund (IEYF).

Devon County Council will receive around £440,000 in July 2026 to distribute to early years providers.

What is the IEYF for?

This funding is intended to:

  • support inclusive practice across the whole setting
  • help providers deliver Ordinarily Available Inclusive Provision (OAIP)
  • reduce reliance on individual funding applications
  • enable earlier support for children with additional needs and SEND

This is the first step towards a simpler and more consistent SEND funding system in early years.

How does it fit with existing funding?

The IEYF sits alongside existing funding streams, including:

  • Universal Inclusion Funding
  • SEN Inclusion Fund (SENIF)
  • Disability Access Fund (DAF)
  • High Needs Funding

How will the funding be allocated?

The funding formula used by the DfE is based on the number of universal hours claimed by 3- and 4-year-olds in the Spring term (Census data).

  • Devon will receive £56.73 per PTE
    (PTE = a child taking 15 funded hours per week)

Payment approach in Devon

The DfE have suggested:

  • 75% of the budget is paid through a base  rate for all settings
  • 25% of the budget is  linked to deprivation factors

In Devon, we will

  • allocate 100% through the base rate, as deprivation is already reflected in existing universal funding and targeted funding which takes into account of IMD scores across Devon.
  • recognise that all providers support children with SEND, including in rural areas

What settings will receive

The DfE have suggested that there is a minimum payment of £1000, however this would mean a large proportion of our settings would not receive any funding and we recognise that all EY providers need to meet their inclusion duties…  We have therefore proposed that there is no minimum threshold.

  • Settings with fewer than 7 PTEs will receive a minimum payment of £100*
  • All other settings will receive PTE × £56.73* (based on the Spring data)

*Final amounts will be confirmed once Devon receives its full allocation in July.

What should settings use the funding for?

The IEYF should be used to strengthen whole-setting inclusive practice, for example:

  • improving staff confidence and skills in supporting SEND
  • adapting environments and resources
  • developing inclusive teaching approaches
  • strengthening early identification and support

What happens next?

Settings do not need to do anything further. We will update you once we have received our final allocations and confirm the amount of funding you will receive in the Autumn term.