The School and Early Years Finance (England) Regulations 2021

Early years 95 per cent requirement

24.—(1) In making determinations under regulation 11(9), a local authority must comply with the formula set out in this regulation.

(2) The formula is (A - B) / C is no less than 95 percent of D, where—

(a) A is the total of—

(i) all budget shares and amounts determined by the authority under regulation 11(9);

(ii) any amount deducted by the authority under paragraph 27 of Schedule 2 to these Regulations; and

(iii) any amount of the fund established under paragraph 32 of Schedule 2 to these Regulations, which the authority intends to distribute to early years providers;

(b) B is the total of—

(i) the maintained nursery school supplement, and

(ii) any part of the budget share or amount determined by the authority under regulation 11(9) in respect of disadvantaged two-year-olds;

(c) C is the total number of hours of attendance of children, predicted by the authority under regulation 16(1), less any predicted hours of attendance of disadvantaged two-year-olds;

(d) D is the hourly unit funding rate, notified to the local authority in the early years block.