Early Years National Funding Formula (EYNFF) – 2026-27 - consultation

Purpose

This consultation asks providers for their views on the following areas:

• The funding principles for 3- and 4-year-olds under the Early Years National Funding Formula (EYNFF)
• Discretionary supplements
• The Special Educational Needs (SEN) Inclusion Fund proposed adjustments.
• Contingency Fund
• Local Authority Centrally Retained Funds

Background and overview:

The Early Years National Funding Formula (EYNFF) was introduced in April 2017. Each year the Government publishes guidance setting out the overall framework, funding rates, and expectations on local authorities in implementing the EYNFF.

From 2026-27 Local Authorities will be required to allocate 97% of funding to providers.

Local authorities (LA) are required to consult providers on annual changes to their local formula.

On the 15^th December 2025 the Department for Education (DfE) published the latest Early Years funding guidance including the Early Years entitlements for 2026-27 which can be accessed via here.

The early years entitlements are: (All entitlements are 38 weeks a year unless stretched)

• the 30 hours entitlement for qualifying children of working parents aged from 9 months until the child turns 2 years old.
• the 30 hours entitlement for qualifying children of working parents aged 2.
• the 15 hours entitlement for families with 2-year-olds receiving additional forms of support (formerly known as the 2-year-old disadvantaged entitlement).
• the universal 15 hours entitlement for all 3 and 4-year-olds and the additional 15 hours entitlement for qualifying children of working parents aged 3 and 4.

As in previous years additional funding will be available in 2026-27 for:

• maintained nursery school (MNS) supplementary funding for 3 and 4-year-olds
• the disability access fund (DAF) for eligible children accessing the early years entitlements
• the early years pupil premium (EYPP) for eligible children and looked after children accessing the early years entitlements

National Funding Formula Guidance

The pass-through rate change for 2026-27 means that the local authority retained element is changing from up to 4% in 2025-26 to up to 3% for 2026-27. The retained funding supports the following:

• Quality and improvement support for individual settings.
• Subsidised Early Years Training Programme.
• Work with Early Years and Childcare providers to ensure they can deliver sustainable provision and can expand to meet demand.
• Support to families in accessing early years and childcare provision and the early years entitlements.
• Administration of the early years entitlements.
• Supporting access to early years and childcare provision for children with emerging and complex needs.

Contingency Fund

LAs can set aside contingency funding as part of their local budgetary process to help manage fluctuations in take-up. Any underspend from an LA’s early years budget must remain within the education budget.

The LA proposes a continuation of an allocation from each of the entitlements to the contingency fund.

Timescales

On 15^th December 2025, the Department for Education (DfE) announced the local authority hourly funding rates for April 2026 to March 2027. The allocations, proposed provider rates and the outcome of this consultation, will be reported to Oxfordshire's Schools Forum on 12 February 2026:

https://www.oxfordshire.gov.uk/residents/schools/our-work-schools/oxfordshire-schools-forum

There then follows political ratification and final rates will be communicated to providers by 28 February 2026.

The timetable is challenging for all involved. The consultation will close on 29^th January 2026 at 9am. We encourage providers to engage in this consultation and thank you in advance for your contributions.

Have your say

We’d like to hear what you think about our Early Years National Funding Formula (EYNFF) – 2026-27.

Please fill in our online survey by clicking the ‘TAKE SURVEY’ button below.