The Education Endowment Foundation has published guidance to help nurseries make the most of the increase in funding for the most disadvantaged children.

Following a 45% increase in Early Years Pupil Premium (EYPP) funding,  eligible early years settings in England will be able to claim up to £570 per child per year from April.

EYPP aims to improve the educational outcomes of socio-economically disadvantaged children who are eligible for free early years entitlements in an early years setting.  

The EEF Guide to the Early Years Pupil Premium is based on the best available evidence of what works to support socio-economically disadvantaged children.

Data shows an average learning gap of 4.6 months between disadvantaged children and their peers by the time they start Key Stage 1. The EEF’s new guidance is designed to help early years settings use the additional funding effectively, closing learning gaps and supporting every child to flourish.

The guide recommends settings take a balanced approach to spending, encouraging them to:

• Develop quality practice. Using EYPP to invest in effective professional development will help settings respond effectively to each child’s individual needs.
• Tailor personalised support. This could include spending on targeted interventions, or robust assessment tools.
• Lead, plan and sustain. Meaningful engagement between leaders and their teams throughout the process is crucial for making changes to practice that will stick. This could include setting aside time to collaborate with other settings or engaging with the support offer from local authorities and Stronger Practice Hubs.

The Department for Education has also published non-statutory guidance setting out expectations for how local authorities should use early years pupil premium (EYPP) funding for the financial year beginning April 2025.  Local authorities are responsible for paying EYPP to early years settings.

Chris Paterson, co-chief executive  at the Education Endowment Foundation, said: “The Early Years Foundation Stage includes the word foundation for a reason – these initial years are the crucial building blocks for later learning. Yet we know that socio-economically disadvantaged children are already 4.6 months behind their peers by the time they start Key Stage 1. 

“The enhanced Early Years Pupil Premium has real potential to help close learning gaps early and support education equality in England. The additional funding presents a welcome opportunity to focus resources and efforts on those children who need them most, particularly at a time when budgets are squeezed.”