The School and Early Years Finance (England) Regulations 2022

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.