The government’s latest changes to the early years funding formulae bring two key changes which we pointed out in our response to the consultation would spread an already limited amount of funding unevenly across the country. Our analysis of the published 2023-24 allocations shows this to be the case and looks at where the funding squeeze will be most acute.
A small group of local authorities benefit from both the maximum increase to the 3- and 4-year-old funding rate (at or near 5%) and to the 2-year-old rate (at or near 10%). Thirteen of these are in the South East, four in Outer London and two in Inner London. Settings and schools in these areas will see their 2-year-old funding rise at nearly the rate of inflation while their 3- and 4-year-old funding rises at only half that rate, but they are in a better position than others.
