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Government announces over £2 billion boost to secure expansion in early education

by Jess Gibson

Early years settings are to receive an additional £2 billion to support the rollout of 30 hours of government-funded early education from September 2025, the government has stated.

This forms part of the government’s mission to break the link between background and opportunity, increasing access to affordable, high-quality early education to ensure children will be ‘school ready’ at age five.

The prime minister last week unveiled the government’s Plan for Change, which included an ambition for 75% of children to be achieving a good level of development when they start school by 2028. The government has said that “a reformed and sustainable early education system is central to this mission”, which is why it is increasing investment by over 30% compared to last year – bringing total spend to £8 billion – as it expands government-funded early education for working parents.

The £2 billion uplift reflects the government’s latest modelling for the final 2025-26 entitlement funding rates, the uplift to the Early Years Pupil Premium, and the £75 million expansion grant.

This updated spend figure is in line with existing projections of the 70,000 new places required to meet demand for next September.

Secretary of State for Education Bridget Phillipson said: “High-quality early education is the cornerstone of our promise to ensure tens of thousands of children are school ready every year, as part of the government’s Plan for Change.

“Despite the inherited challenges we face, this government will invest in our children’s future to break the link between background and success and build a system that gives every child the best start in life.

“The early years has been my priority from day one, because by giving more children the chance to start school ready to go, we transform their life chances, and the life chances of every child in their classroom.”

Sarah Ronan, Director of the Early Education and Childcare Coalition, said: “We are really pleased to see the Government back its Plan for Change with this hugely significant increase to the Early Years Pupil Premium – something that members of the Coalition have long called for.

“A reformed early education and childcare system won’t happen overnight but decisive action on educational disadvantage must be the starting point for that work.

“We welcome today’s uplift in the EYPP as a clear sign of the government’s commitment to ensuring that all children get a fair start in life.”