Changes to Early Years funding entitlements, 2026/7

The DfE has this week published the operational guide for Early Years funding and entitlements for next academic year. We are in the process of reviewing this, and will soon provide a summary for Early Years settings of the key points to note.  

Some providers in the Early Years sector still operate under contractual arrangements with parents and carers that are not compatible with the statutory guidance in this space. Admittedly, the statutory guidance is dense, and much of the obligation falls on the local authority to achieve statutory outcomes, but Early Years providers are expected to deliver in partnership.

Compatible contracts between Early Years providers and parents and carers are a key part of supporting delivery effectively, as parents and carers, as well as the provider, can benefit from the clarity and certainty of the terms which attach to the child's place.  

As well as needing to be compatible with Early Years statutory guidance, contracts between provides and parents and carers fall within consumer contract law, and we have also been advising Early Years providers in updating their contracts in line with the Digital Markets, Competition and Consumers Act 2024.