Inclusive Early Years Fund

As part of the inclusive mainstream fund announced in February 2026, the IEYF will provide an additional £47 million of early years funding in 2026 to 2027 to support the early years sector to become more inclusive of children with special educational needs and disabilities (SEND).

The IEYF is to help providers become more inclusive of children with SEND. While the specific use of funding will vary between providers, it could support activities such as:

• strategic planning
• workforce development – for example, this could include increasing staffing within settings, or freeing up staff to attend training
• adaptations or resources to create an inclusive environment

Nottingham City will distribute the IEYF to providers using the DfE recommended approach for local distribution, as set out in the national guidance.  The total allocation for the LA will be fully distributed to providers based on a base rate, plus an additional needs factor, mirroring the same criteria used in our local early years funding formula deprivation supplement, paid in respect of 3- and 4-year-old universal PTE’s.  We will replicate the national early years funding formula which is weighted 75% base rate and 25% additional needs factors.

All funded providers will initially have an allocation calculation prepared on the base rate and additional needs factor, based on the number of 3- & 4-year-old universal PTE children on the January 2026 census.

For providers whose initial calculation does not reach £1,000, we will implement a de minimis threshold, in line with the national guidance and these providers will be excluded from receiving the grant at this point and their allocations redistributed across the remaining providers. This is to ensure all providers receiving the grant receive an amount substantial enough to effect meaningful change in inclusive practice at setting level.  This supports value for money by avoiding small allocations that would be insufficient to support the development of mainstream inclusive practice.

If your early years provision calculation reaches the £1,000 de minimis threshold you will be contacted directly by the end of August 2026.

The LA will make one lump sum payment to all eligible providers by the end of September 2026. 

    Further information can be found on this information sheet or on the DfE's website at Inclusive early years fund: 2026 to 2027 - GOV.UK