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DfE proposes cut to councils’ retained early years funding allowance

1 min read Early Years
The Department for Education has proposed to reduce the proportion of early years funding allowed to be retained by local authorities to deliver functions like staffing, family support and the administration of the funded childcare offer.
Reducing retained funding allowance for local authorities could impact providers, experts warn. Picture: Adobe Stock
Reducing retained funding allowance for local authorities could impact providers, experts warn. Picture: Adobe Stock

The proposal was shared with council leaders earlier this year as part of a webinar around government plans to expand funded childcare hours to children as young as nine months by 2025.

The Powerpoint presentation entitled Early Years Funding: Entitlements Extension Consultation was shared with CYP Now as part of an investigation into the use of the retained funding by councils.

A Freedom of Information request sent to all English local authorities found that of the 94 councils that responded, 43 per cent retained the maximum five per cent allowance.

The average proportion of retained funding across all local authorities is 3.8 per cent with most being spent on administration of the funded childcare scheme and early years staff costs.

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