Early Years and Childcare Special Newsletter
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Monday 15 December 2025
The Department for Education (DfE) have published the local authority funding rates for 2026 to 2027 and the early years funding operational guidance. These can both be accessed on the GOV.UK web page. Local authorities received this information on Monday 15 December 2025, at the same time it was released to the public. We are now digesting the information and what this will mean in practice. Further information will be shared in due course.
Papers to include a proposed funding formula and Early Years Funded Entitlement rates will be written by the local authority and submitted to Schools Forum by Thursday 8 January 2026. These papers will be available here West Sussex Schools Forum. The paper relating to the funding rates will be under Early Years DSG.
These papers will be presented at the Schools Forum meeting on Thursday 15 January 2026. If approved, communication will be sent to providers in West Sussex County Council to confirm the funding rates for 2026 to 2027 via a newsletter email. The DfE expect all local authorities to communicate funding rates to providers by 28 February 2026.
The rates which have been published today are the amounts paid to the local authority and these will not be the hourly rates you will receive as your base rate. This is because the published rates includes all the elements of the funding:
- inclusion funding
- deprivation funding
- the centrally retained funding
The DfE have produced an "easy explainer" which outlines how Early Years funding rates are calculated.
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