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The School and Early Years Finance (England) Regulations 2025

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Change 1

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As published

37 Early years 96% requirement

(1) In determining budget shares and amounts allocated in accordance with regulation 11(9), a local authority must comply with the formula set out in paragraph (2) separately for each relevant group. (2) The formula is (A – B) / C is no less than 96% of D, where— (a) A is the total of— (i) all budget shares and amounts determined by the local authority under regulation 11(9) in respect of the relevant group; (ii) any amount deducted by the local authority under paragraph 27 of Schedule 2 (early years contingency fund), which it intends to distribute to early years providers in respect of the relevant group; and (iii) any amount of the local authority’s special educational needs inclusion fund which the local authority intends to distribute to early years providers in respect of the relevant group; (b) B is the total of— (i) where the calculation is being made in respect of three and four year olds, the maintained nursery school supplement; (ii) any amount included in accordance with regulation 34(1) or (6) (early years pupil premium) in respect of the relevant group; and (iii) any amount included in accordance with regulation 35(1) (disability access fund) in respect of the relevant group; (c) C is the total number of hours of attendance of children in the relevant group predicted by the local authority under regulation 32(1) (special arrangements for early years pupils and children); and (d) D is the hourly unit funding rate in relation to the relevant group, notified to the local authority in the early years block. (3) A local authority may alter the operation of this regulation if authorised to do so by the Secretary of State under regulation 42(1)(q).

Your change, as a redline

37 Early years 96% requirement

(1) In determining budget shares and amounts allocated in accordance with regulation 11(9), a local authority must comply with the formula set out in paragraph (2) separately for each relevant group. (2) The formula is (A – B) / C is no less than 96% of D, where— (a) A is the total of— (i) all budget shares and amounts determined by the local authority under regulation 11(9) in respect of the relevant group; (ii) any amount deducted by the local authority under paragraph 27 of Schedule 2 (early years contingency fund), which it intends to distribute to early years providers in respect of the relevant group; and (iii) any amount of the local authority’s special educational needs inclusion fund which the local authority intends to distribute to early years providers in respect of the relevant group; (b) B is the total of— (i) where the calculation is being made in respect of three and four year olds, the maintained nursery school supplement; (ii) any amount included in accordance with regulation 34(1) or (6) (early years pupil premium) in respect of the relevant group; and (iii) any amount included in accordance with regulation 35(1) (disability access fund) in respect of the relevant group; (c) C is the total number of hours of attendance of children in the relevant group predicted by the local authority under regulation 32(1) (special arrangements for early years pupils and children); and (d) D is the hourly unit funding rate in relation to the relevant group, notified to the local authority in the early years block. (3) A local authority may alter the operation of this regulation if authorised to do so by the Secretary of State under regulation 42(1)(q).

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