The Early Years Pupil Premium (EYPP) is additional funding available to Early Years providers.
It is designed to help improve outcomes for eligible children and support every child to have the strongest possible start before primary school.
For nurseries, pre-schools, childminders and school-based nurseries, the update brings increased funding and a continued focus on using EYPP in a clear, thoughtful and evidence-informed way.
What Has Changed?
The Early Years Pupil Premium rate has increased
For 2026-27, the EYPP rate is £1.15 per hour. This is worth up to £655 per eligible child per year, based on a maximum of 570 hours. It follows the April 2025 increase, when the rate rose to £1 per hour.
A reminder on age range
EYPP covers eligible children from 9 months to 4 years. This is a wider age range than when EYPP was focused on 3 and 4 year-olds. A child must also be accessing funded entitlement hours and meeting one of the criteria below.
Who is eligible for EYPP?
EYPP eligibility depends on more than a child’s age. A child must be receiving at least one hour of funded early years entitlement, and they must also meet one of two eligibility routes.
- The first route is economic. A child qualifies if their parent or carer receives one or more of the following: Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, support under Part 6 of the Immigration and Asylum Act 1999, the guaranteed element of Pension Credit, Child Tax Credit (provided they are not also entitled to Working Tax Credit and have an annual gross income of no more than £16,190), the Working Tax Credit run-on (paid for four weeks after they stop qualifying for Working Tax Credit), or Universal Credit where household income is less than £7,400 a year after tax, not including any benefits.
- The second route is care experience. A child who is currently looked after by a local authority in England or Wales is eligible, as is a child who was formerly looked after through adoption, a special guardianship order or a child arrangements order. For a child who is currently looked after, the local authority pays EYPP across the full 570 hours, regardless of how many entitlement hours the child takes up.
The age range of 9 months to 4 years sets out when EYPP can apply. It does not mean every child in that age range is eligible. A child still needs to be accessing funded entitlement hours and meeting one of the criteria above.
Eligibility is checked by the local authority, not by the setting. Most local authorities ask a parent or carer to let them know if they think their child may be eligible, and the authority then confirms this using the eligibility checking service. Settings usually support this by sharing the parental declaration form and gaining consent for the check. This is why accurate identification and declaration matter: the funding only follows children who have been correctly identified.
How EYPP is paid
EYPP is paid to providers, not directly to families. EYPP is paid on the first 15 hours of entitlement only, up to a maximum of 570 hours a year. It does not apply to any extended or working parent hours a child takes beyond that.
Funding flows from the Department for Education to local authorities through the Dedicated Schools Grant. Local authorities then pass it to providers.
Settings declare eligible children to their local authority, and the funding follows the eligible funded hours claimed.
You can read the Department for Education guidance here: Early Years Pupil Premium guide for local authorities.
Settings should be ready to explain impact
Early Years settings are not required to publish an EYPP strategy statement online. However, Ofsted evaluates the effectiveness of EYPP use as part of leadership and management. This means settings should be ready to explain how EYPP spending supports eligible children and how it contributes to improved outcomes.
What This Means for Early Years Settings
EYPP gives Early Years settings additional funding to support children who may benefit from extra consistency, focus or tailored support.
The funding should be used in a way that reflects children’s needs and supports their development.
The funding can be used to help strengthen key areas such as:
- Self-regulation, emotional development and confidence
- Communication, language and social development
- Relationships, routines and independence
- Links between the setting and home, alongside staff knowledge and practice
Settings can use EYPP for approaches that benefit the whole setting, as long as the greatest benefit is intended for eligible children.
This means a whole-setting approach can be appropriate when it is clearly linked to children’s needs and the outcomes settings want to support.
What Early Years Settings May Want to Consider
Review eligible children and funding
Settings may want to check that eligible children are being identified and declared accurately through the local authority process.
This helps ensure the right funding reaches the setting.
Review current EYPP spending
The Education Endowment Foundation guide recommends a balanced approach across three areas:
- Developing quality practice
- Tailoring personalised support
- Leading, planning and sustaining improvement
Settings may want to use these areas to reflect on current EYPP spending and whether it is aligned with children’s needs.
You can explore the EEF guidance here: EEF Guide to the Early Years Pupil Premium.
Think about evidence and impact
Settings may be asked to explain how EYPP is being used and what difference it is making. This does not need to be complicated.Leaders may want to consider how they track children’s progress, how staff use what they know about each child and how spending decisions link back to outcomes.
Consider staff development
Professional development is one way settings can use EYPP to strengthen practice. This can help practitioners build confidence and deepen their understanding of children’s wellbeing, communication, routines and emotional development.
Strengthen links with families
EYPP can also support work that helps families and settings share a consistent approach. This may include support around routines, confidence, communication, independence and emotional regulation. A shared approach between setting and home can help children feel secure and ready to learn.
How This Links to Wellbeing, PSED and School Readiness
EYPP is closely linked to Early Years wellbeing because it focuses on the foundations children need before they reach primary school:
- Self-regulation, confidence, communication and emotional awareness all support children’s ability to settle, learn and build relationships.
- A whole-setting wellbeing approach can help children develop a shared language for feelings, routines and relationships.
- It can also support staff and families to work together around each child. For children who may benefit from extra consistency between setting and home, this early support can be especially valuable.
How Wellbeing Support Can Strengthen School Readiness
EYPP can support approaches that help children build the foundations they need before starting school.
This includes confidence, communication, routines, independence, emotional awareness and positive relationships.
Our School Readiness Programme (Ready to Shine), available as part of our myHappymind for Early Years Programme, supports school readiness through a 5-week programme for Early Years settings.
It includes:
- Ready to deliver sessions and resources
- CPD training videos for staff
- Family engagement resources
- Transition materials and activities linked to starting school.
The programme focuses on the whole child, helping children feel more confident, familiar and ready for the move into Reception.
The EYPP update gives Early Years settings more opportunity to support children at this important stage in their development. The key is to use the funding clearly, thoughtfully and in a way that reflects children’s needs. By focusing on evidence-informed practice, staff development, family links, wellbeing and school readiness, settings can make confident decisions about how EYPP is used.
Frequently asked questions
The Early Years Pupil Premium is additional funding for Early Years providers. It is used to improve outcomes for eligible children and help close the gap in the Early Years.
EYPP stands for Early Years Pupil Premium. It is additional funding for early years providers in England, designed to improve outcomes for eligible disadvantaged children before they start primary school.
The rate has increased to £1.15 per hour for 2026-27. This is worth up to £655 per eligible child per year, based on a maximum of 570 hours. EYPP applies to eligible children from 9 months to 4 years.
EYPP eligibility depends on more than a child’s age. A child must be receiving at least one hour of funded early years entitlement, and they must also meet one of two eligibility routes.
- The first route is economic. A child qualifies if their parent or carer receives one or more of the following: Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, support under Part 6 of the Immigration and Asylum Act 1999, the guaranteed element of Pension Credit, Child Tax Credit (provided they are not also entitled to Working Tax Credit and have an annual gross income of no more than £16,190), the Working Tax Credit run-on (paid for four weeks after they stop qualifying for Working Tax Credit), or Universal Credit where household income is less than £7,400 a year after tax, not including any benefits.
- The second route is care experience. A child who is currently looked after by a local authority in England or Wales is eligible, as is a child who was formerly looked after through adoption, a special guardianship order or a child arrangements order. For a child who is currently looked after, the local authority pays EYPP across the full 570 hours, regardless of how many entitlement hours the child takes up.
The age range of 9 months to 4 years sets out when EYPP can apply. It does not mean every child in that age range is eligible. A child still needs to be accessing funded entitlement hours and meeting one of the criteria above.
A child qualifies on economic grounds if their family receives at least one of the following: Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, support under Part 6 of the Immigration and Asylum Act 1999, the guaranteed element of Pension Credit, or Universal Credit where household income is less than £7,400 a year after tax, not including any benefits. A child is also eligible if they are currently looked after by a local authority, or have left care through an adoption order, special guardianship order or child arrangements order.
No. The age range tells you when EYPP can apply, not whether a child qualifies. A child aged 9 months to 4 years is eligible only if they are receiving funded childcare entitlements and meet at least one of the eligibility criteria.
Yes. A child currently looked after by a local authority in England or Wales is eligible, as is a child who was formerly looked after through adoption, a special guardianship order or a child arrangements order. For a child who is currently looked after, the local authority pays EYPP across the full 570 hours, regardless of how many entitlement hours the child takes up.
Eligibility is checked by the local authority, not the setting. Most local authorities ask a parent or carer to tell them if they think their child is eligible, and the authority then confirms eligibility using the eligibility checking service. Settings usually support this by sharing the parental declaration form and gaining consent for the check.
No. Early Years settings are not required to publish an EYPP strategy statement online. However, settings should be ready to explain how EYPP is used and how it supports outcomes for eligible children.
Yes. EYPP can be used for approaches that benefit all children, as long as the greatest benefit is intended for eligible children. This can help settings avoid stigma and build consistent support across the whole setting.
