by Jess Gibson
The Department for Education (DfE) has announced updated early years funding rules for local authorities in 2026-27, confirming a rise to the minimum rate of funding councils must pass on to early years settings.
This information, usually shared in the autumn, is being shared now with the DfE aiming to support better planning and consultation before the next phase of the expanded entitlement offer.
The update states that the minimum pass-through rate for early years funding for 2026-27 will increase from 96% to 97%. According to the DfE announcement, this means local authorities will control less of the funding centrally but, due to an “increase in the rate of early years funding overall”, it is projected that they will have more financial means than prior to the 30-hour expansion.
The announcement also noted that:
- national funding rates for 2026-27 will be confirmed in autumn 2025.
- from 2026-27, 28 February will be the new statutory deadline for local authorities to confirm local funding rates to providers.
Minister for early education Stephen Morgan said: “High-quality early education is the cornerstone of our mission to give every child the best start in life.
“These changes will help ensure more of our investment reaches the frontline, more quickly – enabling nurseries, childminders and other providers to get thousands more children school ready every year, delivering on our Plan for Change.”