DfE have today announced the early years funding settlement for 2023-24, which leaves the early years sector struggling on below inflationary increases. While an additional £10m for the least well-funded maintained nursery schools (MNS) is welcome, and an additional £20m for the Early Years National Funding Formula represents a token acknowledgement of the additional wage and inflationary costs facing the sector, it is nowhere near enough to address the crisis in recruitment and retention which is having a real impact on quality, sufficiency and affordability, especially in the most economically challenged areas. Young children will bear the brunt of this failure to invest in the high quality early childhood education which is proven to make a difference to future life-chances.
DfE’s response to the consultation updates and amends the national funding formulae that determine local authorities funding rates for the free childcare entitlements. They have implemented almost all of the changes proposed, meaning that rates will not increase uniformly across the sector.
This includes rolling the Teachers Pay and Pensions Grant (TPPG) for primary schools into the EYNFF, leaving it up to local authorities to decide whether it continues to be allocated to schools to assist with additional staffing costs. The additional £10m for maintained nursery schools, bringing up funding levels for the least well-funded, is confirmed, with MNS share of the TPPG added to the supplementary funding in addition.
