The funding of free early education forms part of a government consultation on changes to the free entitlement for three- and four-year-olds and disadvantaged two-year-olds, as well as childcare sufficiency.
For the next two years the money will form part of the early intervention grant, but the government is asking for views on how it should be funded from 2013/14 onwards.
Children's minister Sarah Teather launched the consultation, which also confirms plans to make the free entitlement to 15 hours per week of early education more flexible, so it can be accessed between 7am and 7pm, and spread across two days instead of the current three days.
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