The School and Early Years Finance (England) Regulations 2023

12 per cent early years discretionary funding cap

33.—(1) A local authority must ensure that the total amount of discretionary funding does not exceed 12 per cent of early years allocations.

(2) For the purposes of paragraph (1), “discretionary funding” means funding that is attributable to—

(a) the factors based on the incidence of social deprivation in pupils or children referred to in regulation 16 (social deprivation for early years); and

(b) the requirements, factors and criteria set out in Part 2 of Schedule 3 which by virtue of regulation 28(3) a local authority may take into account in its formula.

(3) For the purposes of paragraph (1), early years allocations means the total amount of the following budget shares and amounts determined by the local authority under regulation 11(9)—

(a) the budget shares for nursery schools maintained by the authority;

(b) the amounts to be allocated in respect of nursery classes in schools maintained by it;

(c) the amounts to be allocated to relevant early years providers in its area; and

(d) the amounts to be allocated in respect of community early years provision in schools maintained by it.

less any of the amounts specified in paragraph (4).

(4) The following are not included in early years allocations for the purposes of this regulation—

(a) any amounts allocated in respect of disadvantaged two-year-olds; and

(b) the maintained nursery school supplement.