The rationalisation is designed to achieve greater value for money and comes amid concerns from local authorities that the current bidding process is far too complicated.The measures would streamline several early-years funding streams covering areas such as education and childcare.
The Children's Bill also includes powers making it easier for councils to pool their budgets with health authorities.
Graham Rich, chief executive of West Hull Primary Care Trust, said pooling budgets was a good option but would require trusting relationships between education departments, trusts and social services. Combined budgets should not include very specialised areas such as neonatal intensive care, he added.
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