2024 to 2025 Early Years Funding - Early Years Assurance Programme Findings - April 2026

Oct 15, 2026

Uploaded by Bintang

Report summarises key findings from the Department for Education’s 2024 to 2025 assurance review of Dedicated School Grant Early Years funding for local authorities and early years providers. It reviews oversight and control arrangements, including eligibility checks via DfE systems, monitoring and governance, and fraud or error reporting. The review found that children tested were entitled to funding, but identified widespread weaknesses in providers’ recordkeeping, such as incomplete and inaccurate parental agreements and attendance records.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages11

Reading Time28 min

AccessFree to download

Introduction

Summary of findings

Objectives

High level review of LA control arrangements

Approach

Findings

Annex A: LA early years control arrangements – survey results

2024 to 2025 Early Years Funding 2024 to 2025 Early Years Assurance Programme Findings April 2026 Contents 1. Introduction 3 2. Summary of findings 3 3. Objectives 4 4. High level review of LA control arrangements 4 5. Early years funding audits 6 6. Next steps 7 Annex A: LA early years control arrangements – survey results 8 1. Introduction 1.1 This report provides an overview of the key findings from the Department for Education’s (DfE’s) 2024 to 2025 assurance review work on Dedicated School Grant Early Years (EY) funding. 1.2 In 2024-25 there was a significant expansion of the early years programme, which meant that from September 2024, eligible working parents of children aged 9 months to 2 years old were able to access 15 hours of funded childcare (increasing to 30 hours from September 2025), in addition to the pre-existing 30 hours for eligible working parents of 3-and 4-year-olds. This significantly increased DfE early years funding paid to local authorities (LAs) . 1.3 The increased level of funding presented an inherent risk to the DfE of ensuring entitlements funding was being used for the purposes intended. To address this risk, DfE enhanced its 2024-25 assurance approach and carried out an additional programme of assurance activity which included: • a high-level review of LAs’ internal control arrangements in relation to their early years systems and processes, and • funding audits at a sample of academy trust and Private Voluntary and Independent (PVI) early years providers (in liaison with a number of local authorities) . 2. Summary of findings 2.1 Generally, LAs’ arrangements for the oversight of early years providers were found to be reasonable. Most LAs have systems, which automatically check the eligibility of codes directly with DfE’s Eligibility Checking System (ECS) . However, not all LAs audit providers to ensure that they keep parental agreements up-to-date and maintain appropriate attendance records. Of those LAs that perform audits, almost 70% audit no more than 10% of providers. 2.2 Our review confirmed that all children tested were entitled to funding. However, we identified a significant number of instances where providers’recordkeeping was poor, with incomplete and / or inaccurate parental agreements and / or attendance records. 2.3 Consequently, it’s very important that LAs ensure providers keep parental agreements up-to-date and maintain at least basic records of children’s attendance. 3. Objectives 3.1 The main objective of the assurance work was to consider: 1) the oversight and control arrangements LAs have to ensure early years funding is used for the purposes intended. 2) whether the grant funding paid to LAs for early years childcare was based upon complete and accurate data, as recorded in the school and early years census and other data returns. 4. High level review of LA control arrangements Approach 4.1 There were 2 stages to our review of LAs’ control arrangements for the oversight of early years activity. Firstly, we selected a random sample of LAsand, using a series of standard questions, asked them to describe their processes and controls for managing early years activity. This information was then used to develop a summarised questionnaire which was sent to all remaining LAs (the second stage of the review) . 4.2 At both stages the questions were designed to cover 5 key areas of control: • funding is only paid to providers for eligible childcare (i.e. the parents are entitled to the funding for the child) • funding is only paid to providers for eligible activity (i.e. childcare is provided (the entitlement is used)) • the LA data returns made to DfE, which generate the funding allocations are materially correct • there is an appropriate level of monitoring and oversight by the LA • fraud and error identified is appropriately reported and recovered. Findings 4.3 We received responses from 151 of 153 LAs (99%) (

FAQs

What is the purpose of the 2024 to 2025 Early Years assurance review?

To assess oversight and control arrangements ensuring Early Years funding is used for intended purposes, and to confirm grant funding is based on complete and accurate data reported to DfE.

Were the children tested confirmed as eligible for funding?

Yes. The review confirmed that all children tested were entitled to funding.

What key problems were identified in provider recordkeeping?

The review identified instances of poor recordkeeping, including incomplete and/or inaccurate parental agreements and attendance records, making it important for local authorities to require timely updates and basic attendance records.

Oct 15, 2026

Uploaded by Bintang