Two-year-olds early education entitlement

Finance and Early Years teams.

The Chancellor announced in the Autumn Statement that the early education entitlement for two-year-olds will be expanded to cover more children. This means that from 2014, free early education places will be available for around 260,000 two-year-olds - that's around 40 per cent of all two-year-olds. This will ensure that many more children will be able to start this first phase in their education earlier, which we know is critical for preparing children for school and future success.

In recognition of the extra costs involved and to help local authorities build towards this expanded entitlement, £68m of additional funding will be included nationally in the Early Intervention Grant (EIG) in 2012-13. This is in addition to the £223m previously announced.

The indicative EIG allocations for local authorities in 2012-13 have been updated accordingly, and the revised allocations have been published on the Department for Education website. As the funding is not ringfenced, local authorities can use their EIG to fund provision for two-year-olds alongside other services for children, young people and families.

Eighteen local authorities around the country are already taking part in trials about how to extend the entitlement to disadvantaged two-year-olds, and most if not all local authorities are already offering free places to two-year-olds in their area. One thing clear from our conversations with colleagues in authorities is that there is no shortage of commitment to making these places available. At the same time, we are aware of the significant delivery challenges that the expanded entitlement will present in some areas.

We are keen to continue to work with authorities to support your preparations for the delivery of the new entitlement. £5m funding will be available in 2012-13, to support local authorities with delivery. The Department will work with LGA and ADCS to identify the key areas such as workforce development where support may be necessary.

In the meantime, it may be helpful to clarify that the Government's current consultation on free early education, which runs until 3 February, will remain open. It covers a range of questions relating to the statutory guidance on the delivery of free early education, the reform of local authorities' sufficiency duties and a number of details relating to the delivery of the new entitlement for two-year-olds, all of which remain relevant.

Our assumption is that the introduction of the free entitlement for the 20 per cent most disadvantaged two-year-olds will go ahead as planned in September 2013. Implementation of the extended entitlement for 40 per cent of two-year-olds will follow in 2014-15.

The Chancellor also announced last week that funding for the new entitlement would increase to £534m and £760m in 2013-14 and 2014-15 respectively. The Government is interested in views on how local authorities should receive money to fund the new entitlement from 2013-14 onwards. The current consultation also provides an opportunity to give your views on this issue.