Financing for equity in pre-primary education
ENGLAND
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
Legal frameworks guarantee at least two years of free pre-primary education in England. As of 2015, the net enrolment rate for pre-primary education in the United Kingdom was 96.79%. From 2025, all 3- and 4-year-olds are entitled to a funded pre-school place of at least 22.5 hours per week, up from the previous 12.5 hours, in their immediate pre-school year.
Governance
In England, the Department for Education (DfE) is responsible for the management and financing of pre-primary education.
Tuition-free status
All three and four-year-olds can get up to 15 hours of free early education each week for 38 weeks of the year (equivalent to the school term time).
1. Education resources to subnational governments
Funding for pre-primary education in England is allocated from the central government to local authorities through the Early Years National Funding Formula (EYNFF). Under this system, local areas receive different hourly funding rates based on local costs and population needs, with higher allocations for areas with elevated rents or higher staff wages. Additional funding is provided for children with extra needs, such as those from low-income households, with disabilities, or English language learners, via the Early Years Pupil Premium, the Disability Access Fund, and High Needs funding. These funds are passed directly to providers.
The funding formula for the 2024-2025 school year can be found here.
2. Education resources to institutions
Local authorities distribute funding to early years providers using their own “Early Years Single Funding Formula” (EYSFF), resulting in 153 distinct allocation formulas nationwide. Authorities must pass at least 95% of the central government funding directly to providers, while retaining flexibility to offer supplements for rural areas, flexible schedules, or children learning English as an additional language.
The Disability Access Fund provides a fixed annual rate of GBP 938 per eligible child, who must be in receipt of Disability Living Allowance and government-funded early education. The Early Years Pupil Premium gives GBP 570 per eligible child to support families qualifying under an income-based system.
3. Education resources to students and families
Early years education and childcare is delivered through a system of ‘free entitlement’. The universal entitlement provides all 3- and 4-year-olds with a part-time 15-hour place for 38 weeks per year. The extended entitlement offers an additional 15 hours per week for 3- and 4-year-olds from working families. The 2-year-old disadvantaged offer gives the roughly 40% most-disadvantaged children a part-time place for 38 weeks per year. From September 2025, the expanded entitlement will provide a full-time 30-hour place for children aged 9 months to 36 months in working families, meaning all families can expect 30 hours of free childcare for children aged 9 months and older.
4. Social policies and family support programmes
The Child Benefit is a universal programme that provides financial support to families with children under 16, or under 20 if they remain in approved education or training. Introduced through the 1975 Child Benefit Bill, it merged the previous family allowance and child tax allowance benefits. Families receive GBP 26.05 per week for the eldest or only child and GBP 17.25 for each additional child, along with national insurance credits. Households with an individual income above GBP 60,000 in the 2024-25 tax year may need to pay the High Income Child Benefit Charge, though families can opt out of receiving payments to avoid the charge.
