Latest news, policy and events
Above inflation funding rates announced for 2026-27
All three rates will increase at a higher rate than the National Living Wage rise. The Early Years Pupil Premium (EYPP) gets a significant increase too.
However, although this will cover the majority of staff, rises for younger staff members are a higher percentage rise than the uplift to the funding rates.
For three and four-year-olds though, the gap will narrow slightly as a result of next year’s rates, with an average 4.95% increase.
Since 2018 NDNA has been highlighting concerns about huge underspends in local authority budgets which last year amounted to £65 million. The DfE has announced they will carry out termly head counts for three and four-year-olds from April as they currently do for under threes. This will increase the number of returns providers have to make but should make funding decisions more accurate.
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Nurseries need funding boosted to pay statutory wage rises from April
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