The initiative will use payment-by-results to reward councils against targets designed to encourage Sure Start Children's Centres to reduce inequalities in child development and improve school readiness, health and life chances.
These measures include increasing take-up of early education among disadvantaged three-year-olds and increasing the proportion of disadvantaged families completing evidence based parenting programmes.
The draft revised guidance states that local authorities must make sure there are enough local children's centres to meet the needs of young children and parents living in the area, particularly those in greatest need of support.
Children's minister Sarah Teather said the payment-by-results approach would incentivise local authorities to reduce inequality and reward local areas for targeting those who will benefit most from children's centres.
"We know high-quality early years support can have a lasting impact on children's lives and we are committed to maintaining a national network of Sure Start centres that help families in greatest need," she said.
"We understand that local authorities are facing difficult decisions. Our revised guidance makes clear that they should concentrate on improving outcomes for some of the most disadvantaged young people and families. It is about the quality of services to support children and families, particularly the most disadvantaged."
Local authorities will be paid for their performance on:
- Narrowing the gap in attainment through the Early Years Foundation Stage;
- Increasing take up of the free entitlement for two-year-olds;
- Increasing take up of early education among disadvantaged three-year-olds;
- Increasing the prevalence of breastfeeding at six to eight weeks;
- Increasing the proportion of families "in greatest need" completing evidence-based parenting programmes;
- Increasing the proportion of families with children under five who are identified as being "in greatest need" and have "sustained contact" with children's centres in the local area.
