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An investigation by the NDNA has found that millions of pounds of early years funding was instead used to 'offset other deficits, put into local authority reserves, or taken back by the Department for Education'.

Local authorities are continuing to use millions of pounds of early years funding to offset other deficits or put in reserves, according to an investigation by National Day Nurseries Association (NDNA).

The charity also found that almost £60m of early entitlement funding was “clawed back” by the Department for Education (DfE) from childcare places for 2021/22.

A Freedom of Information (FOI) request to all local education authorities (LEAs) in England asked whether they had overspent or underspent their early years funding allocation for places in 2021/22.

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