Early Years funding formula

Early Years funding formula for Cambridgeshire providers 2025-26

Changes to early years funding rates for April 2025-March 2026 were approved by Children and Young People's Committee following consultation with the Cambridgeshire Early Years Provider Reference Group. The Early Years Provider Reference Group support the way we have set our rates and have written a letter to demonstrate their support.

Table of rates
Value per hour	2024-25	2025-26
Three and four-year old places	£5.40	£5.66
Two-year-old places (funded 2's)	£8.00	£8.15
Two-year-old places (working families)	£8.00	£8.15
9-months - 2 years old (from September 2024)	£10.70	£11.00

Early Years Pupil Premium: Will be paid at a rate of £1 per hour for eligible children from April 2025 (up 32p/hour). This premium will be payable for any funded child, including those children under 3 who meet the criteria.

Disability Access Funding: the lump sum paid to settings for eligible children will increase to £938 from April 2025 (up from £910). This funding will be payable for any funded child, including those children under 3 who meet the criteria.

	9 months-2 years	Funded 2s	Working 2s	Universal 3-4s	Extended 3-4s
Base rate	£11.00	£8.15	£8.15	£5.66	£5.66
Deprivation funding	Not payable	Not payable	Not payable	See table below	See table below
EYPP	£1 per hour for eligible children - first 15 hours only	£1 per hour for eligible children	£1 per hour for eligible children - first 15 hours only	£1 per hour for eligible children	Not payable

Deprivation supplement

Deprivation supplement
Rank	Residence of child	IDACI Rank	Value per hour
1	Highest 10% of Lower Super Output Areas (LSOA) per IDACI	0 - 3284	£1.30
2	Next highest 10% LSOA per IDACI	3285 - 6568	£1.00
3	Third highest 10% LSOA per IDACI	6569 – 9852	£0.65
4	Fourth highest 10% LSOA per IDACI	9853 - 13136	£0.30
0	Remaining 60% least deprived	13137 - 32844	£0.00