Over £2 billion boost to secure massive expansion in early education

Early years providers are set to benefit from over £2 billion extra investment compared to last year, to support the rollout of 30 hours of government-funded early education from next September.

This forms part of the government's mission to break the unfair link between background and opportunity, increasing access to affordable and high-quality early education so tens of thousands more children will be ‘school ready' at age 5 by the end of the parliament.

Last week, the Prime Minister unveiled the government's Plan for Change, including an ambition for a record number of children – 75% - to be reaching a good level of development when they start school by 2028.

A reformed and sustainable early education system is central to this mission, which is why despite having to take tough decisions to fix the foundations of the economy the government is increasing investment by over 30% compared to last year – bringing total spend to £8 billion - as it delivers on the promises to expand government-funded early education for working parents.

As usual, hourly funding rates for providers offering the government-funded hours will vary between local authorities, reflecting local circumstances. On average, rates will rise to £11.54 for under 2s; £8.53 for two-year-olds; and £6.12 for three- and four-year olds.

Alongside confirmation of the rates, today the government has announced a new £75 million expansion grant, to be allocated later this year, to support nurseries, childminders and other providers to deliver the 35,000 additional staff and 70,000 places required to meet demand for next September.

The government will also deliver the largest ever uplift to the early years pupil premium (EYPP), increasing rates by over 45% to up to £570 per eligible child per year.  This unprecedented increase is an investment in quality early education for those children who need it most, in the areas that need it most, to give them the support they need to be “school ready” at age 5 and go on to have the best life chances.

Secretary of State for Education, Bridget Phillipson said:

“High quality early education is the cornerstone of our promise to ensure tens of thousands of children are school ready every year, as part of the government's Plan for Change.

“Despite the inherited challenges we face, this government will invest in our children's future to break the link between background and success and build a system that gives every child the best start in life.

“The early years has been my priority from day one, because by giving more children the chance to start school ready to go, we transform their life chances, and the life chances of every child in their classroom.”

Ensuring children have the best start in life is the foundation of the opportunity mission. As we progress towards our milestone of a record proportion of children starting school ready to learn, we will work in partnership with the sector to roll out the expansion to 30 government-funded hours, deliver 3,000 new and expanded school-based nurseries, and increase the availability of high-quality early years places where they are needed most.

Sarah Ronan, Director of the Early Education and Childcare Coalition, said:

"We are really pleased to see the Government back its Plan for Change with this hugely significant increase to the Early Years Pupil Premium - something that members of the Coalition have long called for.

“A reformed early education and childcare system won't happen overnight but decisive action on educational disadvantage must be the starting point for that work.

“We welcome today's uplift in the EYPP as a clear sign of the Government's commitment to ensuring that all children get a fair start in life."

The £2 billion uplift reflects the government's latest modelling for the final 2025-26 entitlement funding rates, the uplift to the Early Years Pupil Premium and £75 million expansion grant. This updated spend figure is in line with existing projections of the 70,000 new places required to meet demand for next September.

***ENDS***

Further supportive commentary

Chris Paterson, co-CEO of the Education Endowment Foundation (EEF), said:  

“We know that high-quality early childhood education has long-lasting and positive outcomes, particularly for disadvantaged children. Targeted funding and focus on this specific goal is therefore crucial – and today's uplift to the Early Years Pupil Premium is a positive first step in this direction.  

“To really see an impact, it will be crucial that the right support is in place to help settings make evidence-backed decisions about how best to spend this additional resource.

“The good news is that we already know a lot about how to boost learning and development in the early years. Simple steps – such as focusing on high-quality interactions between child and adult, or investing in professional development for staff - can have a real impact.”

Early Years Entitlement national average funding rates 2025-26

More information on 2025-26 Early Years Entitlement national average funding rates can be found here.

On Early Years Pupil Premium

More information on the Early Years Pupil Premium can be found <<here>>.

The Early Years Pupil Premium uplift will mark the largest ever uplift to this support, with an unprecedented increase of approximately 45%.

For 3- and 4-year-olds, EYPP is payable on the universal 15 hours entitlement, up to 570 hours per year.  EYPP is payable on the 15 hour disadvantage entitlement for 2 year olds, and the 15 hour working entitlement for under 2s.