Early Years Funding Special Newsletter
Friday 17 January 2025
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In December 2024, the Department for Education (DfE) published the new Dedicated Schools Grant local authority funding rates alongside the early years funding operational guidance for next financial year (2025/26). These can both be accessed on the GOV.UK web page.
For 2025/26, Local Authorities are required to pass through a minimum of 96% of its main entitlement funding to early years providers and to publish local funding rates by 28 February 2025.
In recognition of the continuing financial pressures on early years providers, it was agreed at Schools Forum on 16 January 2025 that in West Sussex, we will pass through 96.5% of this funding. The remaining 'Centrally Retained Funding' will be used for the administration of the scheme, including:
- making payments to providers,
- the Early Years and Childcare Teams, and
- specialist services/projects to support disadvantage including children with Special Educational Needs and Disabilities.
The following rates for 2025/26 have been approved:
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Funding stream
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Rate
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Increase from 2024/25 base rate
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3 and 4 year olds base rate
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£6.06 per hour
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an increase of £0.24
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2 year olds base rate
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£8.50 per hour
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an increase of £0.23
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9 months plus
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£11.57 per hour
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an increase of £0.18
|
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Early Years Pupil Premium (EYPP)
(to a maximum of 15 hours per week per eligible child)
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£1.00
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an increase of £0.32
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Deprivation Supplement (Dep)
(to a maximum of 15 hours per week per eligible child)
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£0.50 per hour for eligible children
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an increase of £0.01 (this will give a combined EYPP/Dep increase to £1.50 per hour)
|
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Disability Access Fund
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£938 per year for eligible children
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an increase of £28
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Inclusion Funding
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See the Inclusion Funding web page for current rates
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Increase of 10% to all bands
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This means, that for those children who are eligible for EYPP/Dep, their hourly rates will be:
- 3 and 4 year olds - £7.56 per hour (base rate + EYPP/Dep)
- 2 year old base rate - £10.00 per hour (base rate + EYPP/Dep)
- 9 months plus - £13.07 (base rate + EYPP/Dep)
These revised rates will commence from the start of the summer term 2025.
We will prepare a short video explaining how the funding rates for 2025/26 were calculated in West Sussex and share in a future newsletter. The information on Inclusion Funding will be updated on our website soon.
The Indicative Budgets for your setting will be shared with you by the end of this financial year. These will be made available to you via your secure log in on the Online Provider Portal.
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