What EYPP is
In England, the Early Years Pupil Premium (EYPP) is additional funding linked to funded early education for children who meet the relevant criteria. It is intended to help settings improve the learning and development opportunities available to those children. The arrangements sit within England’s early years funding system, rather than being a payment made directly to a household. Rules and rates can change, so current arrangements should be understood as applying to England and checked against the latest local authority guidance.
Purpose of the funding
EYPP is additional government funding intended to help early years providers support disadvantaged children’s learning and development. It is linked to a child’s funded early education hours, giving providers extra resource to respond to learning needs during the time the child attends. The policy aims to reduce the effect that socio-economic disadvantage can have on early development and to promote more equal opportunities before children start school.
In practice, the funding supports the quality of the child’s early education, not simply the number of hours available. For example, a provider can consider whether a child needs more opportunities to practise spoken language during everyday play, build confidence in group activities or develop early communication skills. These are examples of developmental areas, not a fixed checklist: the relevant focus depends on the child’s needs and the provision they receive during their funded hours.
For providers, EYPP makes it important to connect funded attendance with an understanding of each child’s learning. Staff can use observations from activities such as shared reading, construction play and conversations at snack time to notice where a child may benefit from additional support. That information can inform planning and professional discussion, so the funding contributes to purposeful early learning rather than being treated as a general increase to the setting’s budget.
EYPP is one part of wider pupil premium funding in the UK, with a distinct role in early childhood education. Its intended value is to enhance learning opportunities at a stage when communication, relationships and approaches to learning are developing rapidly. The practical aim is to help eligible children make progress through their early education, while providers consider how their offer can address barriers to participation and learning.
Who receives the money
The provider delivering a child’s funded early education receives EYPP through the local authority; the payment does not go to the child’s parent or carer. The Department for Education provides funding to local authorities, which administer the arrangements and pass funding to eligible early years providers. These providers may include nurseries, preschools and childminders delivering funded hours.
To make the payment, the local authority uses information about eligible children and the funded hours they take up. Providers submit the relevant child and attendance details through the authority’s early years funding process. The authority then applies its payment arrangements and pays the provider for the funded provision. Payment schedules and administrative steps can differ between local authorities, so providers follow the process set by the council responsible for their area.
If a child attends more than one setting for funded hours, the local authority may need to apportion the funding between providers according to the hours delivered and its local arrangements. This means each setting’s funding is connected to the funded provision it supplies, rather than being a separate payment made to the family. Providers should keep accurate records of funded attendance and the information submitted for funding, so their claims and receipts can be reconciled with the hours delivered.
The provider is responsible for ensuring that EYPP contributes to improved provision for eligible children and can explain how the funding is being used to support learning. The local authority handles payment administration; it does not turn EYPP into money held by parents on a child’s behalf. For families, the key point is that their nursery or other provider receives the funding as part of the public funding arrangements for early education.
What EYPP is not
EYPP is not the school pupil premium. The school pupil premium is separate funding for schools, including for eligible pupils in Reception and later year groups; EYPP applies within early years provision. The names are similar because both are intended to support children facing disadvantage, but they operate in different parts of the education system and are administered through different settings.
EYPP is also not a cash benefit, additional household income or a payment that parents can claim. A family does not receive an EYPP payment into a bank account, and there is no parent claim form for the funding. Instead, the early years provider receives it through the local authority and is responsible for using it to support provision for eligible children.
For families, this means EYPP should not be treated as money available to meet household bills or as a fee refund. For providers, it means the funding must be handled through their early years funding arrangements and connected to children’s learning. It is distinct from both the funded hours themselves and any financial support paid directly to a household.
Who is eligible
A child must be receiving funded early education to qualify for Early Years Pupil Premium (EYPP). In England, eligibility can come through a parent or carer’s qualifying benefits, or through the child’s care history. Local authorities apply the checks and may use different processes. Benefit thresholds and local arrangements can change, so confirm the current requirements with your local authority.
Benefit criteria
For children receiving funded early education, local authorities commonly use the following benefit criteria to assess EYPP eligibility. The income limits are annual household amounts for the 2026 to 2027 funding year.
- A parent or carer receiving Universal Credit may qualify when annual net earned household income, after tax and excluding benefits, is no more than £7,400 for 2026 to 2027.
- A family receiving Child Tax Credit may qualify if it receives no Working Tax Credit and gross annual household income is no more than £16,190 for 2026 to 2027.
- Income Support is a qualifying benefit under the common criteria; the parent or carer must also have a child receiving funded early education.
- Income-based Jobseeker’s Allowance can meet the benefit criterion, subject to the child receiving funded early education.
- Income-related Employment and Support Allowance is another qualifying route commonly used by local authorities for EYPP.
- Support under Part VI of the Immigration and Asylum Act 1999, or the guarantee element of State Pension Credit, can also qualify.
The benefit route is separate from the child’s funded-place requirement: receiving a qualifying benefit alone is not sufficient if the child is not taking funded early education. The funded hours are the baseline on which the local authority can assess an EYPP claim.
Household income is assessed using the relevant definition for the benefit route, so the net earned-income Universal Credit limit should not be confused with the gross-income Child Tax Credit limit. Local authorities may request information to confirm the benefit and income details; their processes and interpretations can vary and may change.
Looked-after and previously looked-after children
Children who are looked after by a local authority qualify for EYPP if they receive funded early education. The child must have been in care for at least one day; a full placement or a minimum period of care is not required. This one-day-in-care rule means that even a short period in care can establish eligibility.
Previously looked-after children can also qualify when they have left local authority care through adoption, a special guardianship order or a child arrangements order. These routes recognise children who were in care and then moved into a permanent or legally recognised family arrangement. The relevant order must relate to the child’s move from care; simply having a special guardianship or child arrangements order, without the qualifying care history, does not establish this route.
For these children, eligibility is based on the care history or order rather than the parent or carer meeting the benefit income limits. The child must still be receiving funded early education, and the local authority will confirm what documentation or information it needs to verify the route.
Checking eligibility
The local authority runs the EYPP eligibility check, usually using information supplied by the child’s early education provider. A parent or carer must give consent for the authority to check the relevant details; without consent, the benefit-based check cannot normally be completed.
Depending on the local process, the provider or authority may ask for the child’s identifying details, the parent or carer’s details and evidence of a qualifying benefit. Evidence can include a current benefit award notice or a Universal Credit statement. For a child who qualifies through care history, the authority may ask for information confirming the placement or the adoption, special guardianship or child arrangements order. Requirements differ between local authorities.
EYPP is calculated in proportion to the funded early education a child takes. A child does not have to use their full funded entitlement to qualify; the local authority can assess the hours actually claimed and allocate funding accordingly.
How much EYPP is paid
EYPP calculations combine an hourly rate with limits on the funded hours to which that rate applies. The distinction between a weekly limit and an annual ceiling matters when checking an annual estimate. A simple calculation shows how a child’s funded pattern translates into a yearly amount. Rates are specific to England and the relevant funding year, and may be revised.
The 2026 to 2027 rate
In England, the EYPP rate for the 2026–27 funding year is £1.15 per eligible funded hour. For 2026–27, the rate applies to the first 15 eligible funded hours a child receives each week; it is not applied to every hour a child attends beyond that weekly limit.
The annual limit for 2026–27 is 570 eligible funded hours per child. This is the total number of hours that can attract EYPP across the year, so the maximum calculation is 570 hours × £1.15 for 2026–27, giving £655.50 per eligible child for that year. A child funded for fewer eligible hours would have the hourly rate applied to those hours, up to the 2026–27 annual ceiling.
These figures describe the 2026–27 rate in England. The weekly limit and annual maximum are separate parts of the calculation: the weekly limit determines which hours can receive the supplement, while the annual limit caps the total hours counted across the funding year.
A worked example
Consider an eligible child taking 15 funded hours each week for 38 weeks in the 2026–27 funding year. The weekly hours are within the 2026–27 limit, and 15 hours multiplied by 38 weeks gives 570 hours, reaching the annual cap. Applying the 2026–27 rate of £1.15 to those hours produces the maximum annual amount shown below.
| Calculation step | 2026–27 figures | Result |
|---|---|---|
| Eligible hours each week | 15 hours × £1.15 per hour | £17.25 per week |
| Eligible hours across 38 weeks | 15 hours × 38 weeks | 570 hours |
| Annual EYPP amount | 570 hours × £1.15 per hour | £655.50 per child |
The weekly calculation shows how the hourly rate applies to the 15 eligible funded hours. Across the full 38-week pattern, those weekly hours add up to the 570-hour annual limit; multiplying that total by the 2026–27 rate gives £655.50 for the year.
If the funded pattern is shorter than 38 weeks or includes fewer eligible hours, the calculation uses the eligible funded hours actually counted rather than assuming the full annual total. The example is for the 2026–27 funding year in England.
How the rate has changed
The EYPP hourly rate in England increased from £1.00 in 2025–26 to £1.15 in 2026–27. That is a rise of 15p per eligible funded hour, or 15% compared with the 2025–26 rate. The comparison is between the rates for those two funding years, not a change to the number of hours used in the calculation.
For example, applying the 2025–26 rate to 570 hours gives £570 for that year, while the 2026–27 rate applied to the same 570 hours gives £655.50. The difference in the annual totals is £85.50 when the eligible hours are unchanged. This comparison isolates the effect of the higher hourly rate.
EYPP rates are announced annually and may change for a later funding year. When estimating funding, use the rate that applies to the relevant year in England rather than carrying forward the 2026–27 figure as a guaranteed future rate.
How settings spend EYPP
Settings can use EYPP to address barriers to learning for eligible children, choosing approaches that fit their needs and the setting’s provision. Priorities may include focused language activities, staff development or stronger partnerships with families. There is no fixed list of permitted purchases, so each decision needs a clear link to children’s learning. Reviewing progress against specific outcomes helps settings judge whether an approach is making a difference.
Spending priorities
A setting should choose provision in response to eligible children’s observed needs, rather than treating the funding as a general budget top-up. Common priorities include:
- Language support: Plan daily conversations, storytelling and vocabulary activities around children’s interests, then track changes in how they understand and use words.
- Staff training: Fund focused professional development in areas such as sustained shared thinking, so practitioners can apply the learning during routines and play.
- Small-group work: Provide short, structured sessions for a few children who need extra practice with communication, early number concepts or taking turns.
- Parent partnership: Offer practical ways for families to support learning at home, such as shared reading routines and simple activities linked to children’s current interests.
- Learning resources: Add books, pretend-play materials or visual supports that address an identified barrier and are used regularly by the eligible children they are intended to benefit.
- Additional adult support: Use staff time to help children join group activities, build relationships and practise skills, with planned opportunities to participate independently too.
For each priority, record which eligible children it is intended to support, the need identified and the change the setting expects to see. A useful plan names an observable outcome, such as a child initiating more conversations during play or joining a group activity more often; it should also identify when practitioners will review progress. This makes it easier to distinguish purposeful provision from spending that has no clear connection to children’s learning. Review the approach using observations, children’s work or other relevant records gathered during ordinary practice. If progress is limited, consider whether the activity is being delivered consistently, whether it suits the children’s needs and whether a different approach is needed. Keep the reasoning and review proportionate: a brief record of the decision, delivery and outcome can support accountability without turning everyday learning into excessive paperwork.
Evidence on what works
The Education Endowment Foundation’s Early Years Toolkit summarises research on approaches including communication and language, self-regulation and parental engagement. Its estimates express average additional months of progress associated with an approach; they are evidence summaries, not a promise that every child will make the same gains. The toolkit reports an average of around six months’ additional progress for communication and language approaches, highlighting the potential value of purposeful interaction and language-rich experiences in early learning. For self-regulation strategies, the toolkit estimates around three months’ additional progress on average. These approaches help children practise skills such as managing attention, emotions and behaviour, which can support participation in play and learning. The estimate does not mean that a particular activity will produce a set gain for an individual child. Settings can use the evidence to guide choices, then check whether children are engaging more readily in activities or managing familiar routines with greater independence. The toolkit’s estimate for parental engagement is around four months’ additional progress on average. This supports EYPP aims when settings build practical, respectful links between learning at the setting and families’ involvement at home. The figures summarise research across studies, so results can vary with the children, quality of implementation and context. Use them alongside children’s starting points and ongoing observations: review whether communication, self-regulation or family engagement is improving for the children the provision is designed to benefit, and adapt the approach when it is not.
Questions about EYPP
These answers clarify what EYPP means, how it differs from school funding and who receives it.
What does EYPP stand for?
EYPP stands for Early Years Pupil Premium: extra funding for disadvantaged children in funded early education. The name describes support linked to a child’s early learning, rather than a payment made directly to a family.
Is EYPP the same as pupil premium?
No. EYPP is separate from the pupil premium for school pupils. EYPP supports eligible children in early years education, while school pupil premium applies to pupils at school, from Reception and above. The two are related in purpose but cover different stages of education and different recipients. A child’s early years funding should not be confused with the school funding arrangements that may apply after they start Reception.
Can parents claim EYPP?
No. EYPP is not a cash benefit for parents and cannot be claimed by a parent. The funding is paid to the early years provider through the local authority, rather than to the child’s family. It is intended to support the child’s funded early education at the setting. Parents therefore do not receive an EYPP payment into their own account.
Does EYPP apply to two-year-olds?
Yes, EYPP can be paid for eligible younger children, including two-year-olds, when they receive funded early education. The exact age range depends on the funded entitlement and local authority rules. A child’s age alone does not establish whether EYPP applies; the relevant question is whether the child is receiving funded early education within an entitlement covered by the local arrangements.