Guidance

Early years data collection for the 2024 to 2025 financial year

Published 9 May 2024

Applies to England

Introduction

This guide is for local authorities. It sets out how they should collect and submit data for the take-up of the government-funded hours for the new early years entitlements for eligible working parents of 2-year-olds and under for the 2024 summer and autumn terms. Local authorities will be required to collect data from early years providers which are normally included in the early years census. Local authorities should work closely with these providers to ensure all required children in scope for this data collection are included in the return.

Section 1: context – what is this data for?

1.1. Expansion of early years entitlements

The 2023 Spring Budget announced an expansion to the early years entitlements for eligible working parents. From April 2024, eligible working parents of 2-year-olds will be able to access up to 15 hours of childcare per week for 38 weeks a year, and from September 2024, this will be extended to eligible working parents of children from aged 9 months old. From September 2025, eligible working parents of 9-month-olds to 3-year-olds will be able to access up to 30 hours per week for 38 weeks a year.

The early years pupil premium (EYPP) and the disability access fund (DAF) will also be extended to eligible children aged 2 and under accessing the entitlements from April 2024.

1.2. Why is the data being collected?

The early years dedicated schools grant (DSG) funding we allocate to local authorities is demand-led. This means local authorities are funded on actual take-up of the entitlement hours. We normally use the data from the January census, to record take-up of the entitlement hours.

However, as the new entitlement for eligible working parents of 2-year-olds starts from April 2024, it will miss the 2024 January census count which we normally use to fund the 2024 summer term. As the entitlements for eligible working parents of 2-year-olds and under-2s are new, we do not have actual take-up data for the new entitlements. We, therefore, need to collect the new data to ensure individual local authorities are accurately funded for delivering the new entitlements in financial year 2024 to 2025.

1.3. Funding streams in scope for data collection

We will collect data from local authorities for the following new early years funding streams:

• the entitlement for eligible working parents of 2-year-old children (new entitlement from 1 April 2024)
• the entitlement for eligible working parents of children from 9 months old to 2 years old new entitlement from 1 September 2024. We will refer to this as ‘under-2s’ throughout this guide, for ease of reference
• early years pupil premium for eligible 2-year-olds (for both the 2-year-old disadvantaged entitlement and the working parents entitlement) and under-2s

This collection will not include the existing early years funding streams: the 2-year-old disadvantaged entitlement, the 3 and 4-year-old universal and extended entitlements, and the EYPP for 3 and 4-year-olds. The data for these existing funding streams will be collected via the annual January census as normal. Data relating to the DAF is also not in scope for collection.

Section 2: what data will be collected?

2.1. Data required from local authorities

All local authorities in England that fund early years provision must provide the relevant data to the Education and Skills Funding Agency (ESFA) on the take-up of the government-funded entitlement hours for the 2-year-old working parent entitlement, under-2s working parent entitlement and 2-year-olds and under-2s in receipt of EYPP, as stated in the DSG conditions of grant. This data will be used to determine the early years DSG funding allocations for the new entitlements in 2024 to 2025. Although funding for City of London and the Isles of Scilly is funded outside the DSG, we will require both local authorities to submit the data.

We will collect data for the 2024 summer and autumn terms for the financial year 2024 to 2025.

For the 2-year-old working parent entitlement and under-2s working parent entitlement, we require the total ‘number of children’ and the total ‘number of entitlement hours’ taken up by children for the government-funded hours in the count week for each term as set out in section 2.4: summer term 2024 and section 2.5: autumn term 2024 below.

For EYPP, we require the total ‘number of children’ in receipt of EYPP and the total ‘number of entitlement hours’ taken up by children in receipt of EYPP in the census week for each term as set out in sections 2.4: summer term 2024 and 2.5: autumn term 2024 below. We will not be collecting information regarding basis of funding for EYPP.

We will use the ‘number of children’ and the ‘number of hours’ to calculate the part-time equivalent (PTEs) hours to determine the funding allocations for local authorities.

The date of birth ranges are:

	2-year-olds	Under-2s	Maximum funded hours
Summer 2024	Born between 1 April 2021 and 31 March 2022 (inclusive)	Not applicable	15 hours
Autumn 2024	Born between 1 September 2021 and 31 August 2022 (inclusive)	Born between 1 September 2022 and 30 November 2023 (inclusive)	15 hours

Local authorities need to ensure there are no duplicate entries for children. For example, if a child splits their entitlement across more than one provider, the child should only be counted once and their total funded entitlement hours at all providers the child attends should be included.

The scope of the termly data collection is the same as that relating to the early years census for the setting types, predominantly for the private, voluntary and independent (PVI) settings. In summary, local authorities should collect data from the following childcare settings:

• PVI providers, including childminders
• schools with non-registered pupils of the school (for example, governor run schools, normally completed on the early years census)
• academies with non-registered pupils of the school (normally completed on the early years census)

For school nurseries (with registered pupils), maintained nursery schools and academies (with registered pupils) the relevant data for the working parents entitlements and EYPP for 2-year-olds and under will be collected via the 2024 summer and autumn term school census, therefore local authorities do not need to include these children in their data return. We encourage local authorities to work with their school settings to ensure the data returns via the school census are accurate as the data will be used for funding allocations.

The specific data required for each term are included in sections 2.4: summer term 2024 and 2.5: autumn term 2024 below.

2.2. Timing of the termly counts

We recognise the approach to taking local attendance counts, including the timing and frequency of counts, varies between local authorities. As a minimum, local authorities are required to take at least 3 counts of attendance per year to pay their childcare providers.

We are asking all local authorities to conduct their termly count for all their PVI settings at the mid-point of each term as this will provide a better representative measure for attendance across each term. This will ensure local authorities are accurately funded for the actual hours delivered by providers each term.

The mid-point in the term will fall on a later date than the timing of the normal termly school census (see section 4.2: summary of key dates below). We acknowledge this may require some local authorities to undertake an additional count or adjust the timing of their existing count, however, the mid-point will allow for greater accuracy and allow local authorities to reflect any growth in-term.

Local authorities are not required to undertake an additional data collection for school-based settings as we will use the data submitted by schools from the termly school census. 

2.3. How to record stretched entitlements

The early years entitlement hours for working parents is up to 15 hours a week, across 38 weeks a year. However, some children may ‘stretch’ the usual standard 15 hours a week, by taking up fewer hours each week across more than 38 weeks a year. For the purposes of this return, the entitlement hours will need to be converted back to a term-time basis.

For example, where a child takes the full entitlement (570 hours across their entitlement year), this should be reported as 15 funded hours and no further action is required. However, where a child takes only part of the entitlement, a conversion is required to calculate how many hours they take over the year.

For example: a child takes 11 hours a week over 45 weeks in the year, totalling 495 hours; and a working parent entitlement is 570 hours (15 hours multiplied by 38 weeks). To convert the stretched entitlement to the number of hours a child would attend each week if they were taking it over 38 weeks, divide 495 by 38 to get 13.03 hours.

2.4. Summer term 2024

For the 2024 summer term we will require the number of children and number of hours taken during count week starting 10 June 2024 for the following early years funding streams:

• entitlement for 2-year-olds of working parents
• 2-year-olds in receipt of EYPP accessing the 2-year-old working parents entitlement
• 2-year-olds in receipt of EYPP accessing the 2-year-old disadvantaged entitlement

The deadline for submitting summer term data to us is 12 July 2024. Details on how to submit the data is included in section 4.1: how to submit data.

2.5. Autumn term 2024

For the 2024 autumn term we will require the number of children and number of hours taken during count week commencing 4 November 2024 for the following early years funding streams:

• entitlement for 2-year-olds of working parents
• entitlement for children of 9 months old up to 2-year-olds of working parents
• 2-year-olds in receipt of EYPP accessing the 2-year-old working parents entitlement
• 2-year-olds in receipt of EYPP accessing the 2-year-old disadvantaged entitlement
• 9-month-olds up to 2-year-olds in receipt of EYPP accessing the working parents entitlement

The deadline for submitting autumn term data to ESFA is 6 December 2024. Further details are included in section 4.1: how to submit data.

Section 3: final funding allocation methodology for 2024 to 2025

3.1 Changes to the allocation profile for new entitlements

In our funding allocation methodology for local authorities, we normally assume children will be funded for five-twelfths of the financial year for the summer term (which is 16 weeks) and seven-twelfths of the financial year for the autumn and spring terms (which is 22 weeks). We recognise our usual methodology for the way we normally pro-rata the funding allocation across the year for local authorities does not mirror the way individual local authorities fund their providers across the year. We are also aware there is an uneven pattern of provision where local authorities generally tend to run shorter weeks in the summer and longer weeks in the autumn and spring terms, and the pattern of provision is not the same for all local authorities. In a typical full financial year, local authorities  normally manage this through the additional weeks that are provided in the autumn and spring terms being balanced by fewer weeks in the summer.

However, since the 2-year-old and under-2s working parent entitlements are new and we cannot predict fully the take-up levels across the year, our usual methodology for the funding allocation profile may not be appropriate in the first year of roll-out for the new entitlements. Therefore, to ensure local authorities are accurately funded, and as we will be collecting termly data for the new entitlements, we will be revising the funding allocation methodology to match local authorities delivery profile better for the new entitlements for each term in the 2024 to 2025 financial year.

Further details on the revised funding allocation methodology for the 2-year-old and under-2s working parent entitlements and EYPP for 2-year-olds and under-2s are included in sections 3.2: ‘2-year-old offers starting from April 2024’ and 3.3: ‘Under-2s offers starting from September 2024’.  

Please note this revision to the funding allocation methodology is only applicable for the 2024 to 2025 financial year. We will keep the allocation methodology under review for the 2025 to 2026 financial year, when the working parent entitlement is extended to 30 hours from September 2025.

3.2. 2-year-old offers starting from April 2024

The entitlement for 2-year-olds for working parents and the extension to EYPP for 2-year-olds start from the beginning of the financial year from 1 April 2024. Please note the extension to EYPP includes both 2-year-olds in receipt of EYPP accessing the 2-year-old disadvantaged entitlement, and those accessing the 2-year-old working parent entitlement. We recognise planned delivery of the entitlement hours for each term will not be the same for all local authorities. In order to ensure all local authorities are fairly treated and the funding allocation methodology closely aligns with local authority delivery pattern, we will be providing all local authorities with funding for 12 weeks in the summer, 14 weeks in the autumn and 12 weeks in the spring.   

We recognise that not all local authorities will be delivering provision using this pattern. For local authorities providing for more than 12 weeks in the summer, they will still receive 26 weeks of funding for the autumn and spring terms in total, and can use any over-funding from those terms to cover the additional weeks in the summer term.

The PTEs for the 2024 to 2025 financial year will be calculated as a weighted average of the termly counts as follows:

• twelve-thirty-eighths of the summer 2024 term PTE numbers (to cover the April 2024 to August 2024 period)

plus

• fourteen-thirty-eighths of the autumn 2024 term PTE numbers (to cover the September 2024 to December 2024 period)

plus

• twelve-thirty-eighths of the spring 2025 census PTE numbers from the early years, schools, and alternative provision censuses (to cover the January 2025 to March 2025 period)

For the 2-year-old working parent entitlement, the final allocation for each local authority will be calculated as follows:

• the total number of PTEs taking up the entitlement as recorded on the counts in summer, autumn and spring as above

• multiplied by 15 hours × 38 weeks × local authority’s 2-year-old hourly funding rate

For EYPP for 2-year-old disadvantaged and the 2-year-old working parent entitlements, the final allocation for each local authority will be calculated as follows:

• the total number of PTEs taking up the EYPP as recorded on the counts in summer, autumn and spring as above

• multiplied by 15 hours × 38 weeks × £0.68

3.3. Under-2s offers starting from September 2024

The entitlement for working parents of children aged 9 months old up to 2 and children in receipt of EYPP accessing this entitlement start from 1 September 2024.

As stated in section 3.1 ‘Changes to allocation profile for new entitlements’, we normally assume children will be funded for seven-twelfths of the financial year, which equates to 22 weeks, to reflect the September start of this entitlement, that is to cover the September 2024 to March 2025 period. However, to ensure local authorities are fully supported in delivering the new entitlement for under-2s starting from September, we will increase the number of funded weeks for the under-2s entitlement to 26 weeks of provision in the 2024 to 2025 financial year.

Therefore, the PTEs for the under-2s entitlement and children in receipt of the EYPP for accessing this entitlement in the 2024 to 2025 financial year will be calculated as a weighted average of the termly counts as follows:

• twelve-thirty-eighths of the summer 2024 term PTE .(that is, this will be zero for under-2s)

plus

• fourteen-thirty-eighths of the autumn 2024 term PTE numbers (to cover 14 weeks funding in the September 2024 to December 2024 period)

plus

• twelve-thirty-eighths of the spring 2025 census PTE numbers from the early years, schools, and alternative provision censuses (to cover 12 weeks funding in the January 2025 to March 2025 period)

Please note: This means the adjustment to reflect funding for 26 weeks (14 weeks in autumn plus 12 weeks in spring) is being applied to the PTE numbers. 

For the under-2s working parent entitlement, the final allocation for each local authority will be calculated as follows:

• the total number of PTEs taking up the entitlement as recorded in the counts in autumn and spring as above
• multiplied by 15 hours × 38 weeks × local authority’s under-2s hourly funding rate

For EYPP for under-2s, the final allocation for each local authority will be calculated as follows:

• the total number of PTEs taking up the EYPP as recorded in the counts in autumn and spring as above
• multiplied by 15 hours × 38 weeks × £0.68

For some local authorities where 26 weeks for the autumn and spring is not their normal pattern of provision and the revised allocation profile leads to an over-funding position in the autumn and spring terms, local authorities should use any surplus funding on early years. As this funding is part of the DSG, it is subject to the DSG conditions of grant and funding is ring-fenced for education purposes.   

3.4. Funding adjustments

The DSG early years indicative allocations would normally be updated in July 2024 to reflect the January 2024 census headcount to show the initial allocations, and then updated in July 2025 to reflect the January 2025 census headcount to show the final funding allocations for 2024 to 2025. This normal timetable for funding adjustments will apply for the existing early years entitlements.

For the new entitlements, given the additional termly counts in the 2024 summer and autumn terms, the indicative allocations for these funding streams for the financial year 2024 to 2025 will be updated in accordance with the timetable set out below.

a) For 2-year-olds of working parents and EYPP for 2-year-olds, local authorities will see 3 adjustments in their funding allocations for 2024 to 2025 in:

• November 2024 - the indicative funding allocations for the financial year 2024 to 2025 (published in December 2023) will be updated and based fully on the summer 2024 term PTE numbers

• March 2025 - these allocations will be further updated to reflect the adjustment for the autumn 2024 term. The March adjustment will be based on twelve-thirty-eighths  of the summer 2024 term PTE numbers (to cover the April 2024 to August 2024 period) and twenty-six-thirty-eighths of the autumn 2024 term PTE numbers (to cover the September 2024 to March 2025 period)

• July 2025 - the final funding allocations will be updated to reflect the adjustment for the January 2025 census. The final funding allocation for 2-year-old working parents and EYPP for 2-year-olds will be based on methodology as described in section 3.1: 2-year-old offers starting from April 2024

b) For under-2s of working parents and EYPP for under-2s, local authorities will see 2 adjustments in their funding allocations for 2024 to 2025 in:

• March 2025 - the indicative funding allocations for the financial year 2024 to 2025 (published in December 2023) will be updated and based fully on the autumn 2024 term PTE numbers
• July 2025 - the final funding allocations will be updated to reflect the adjustment for the January 2025 census. The final funding allocation for under-2s of working parents and EYPP for under-2s will be based on methodology as described in section 3.2: under-2s offers starting from September 2024

Given 2024 to 2025 is a roll-out year for the new entitlements, take-up of the new entitlements, and the subsequent funding adjustments during the year will have more uncertainty than in a steady-state year. As such, local authorities should bear this in mind when managing their budgets.

Section 4: how to submit your data and key dates

4.1. How to submit data

Local authorities will need to submit the data using an online digital form. The digital form will be made available nearer the appropriate date. We will inform local authorities when the digital form becomes available and the details for how to access it. Local authorities’ responsible officers will need to ensure their access to the digital form can be set up by their DfE Sign-in (DSI) approver.

All data submitted to ESFA must be signed off by the local authority’s section 151 officer to provider proper assurance, as the data is being used for national funding purposes.

4.2. Summary of key dates

Item	Activity	Key dates
Summer term 2024 data collection	Summer count week	Week commencing 10 June 2024
Summer term 2024 data collection	Deadline for local authorities to submit summer term data to ESFA	12 July 2024
Autumn term 2024 data collection	Autumn count week	Week commencing 4 November 2024
Publication of updates to early years DSG allocations for the new entitlements funding for financial year: 2024 to 2025	In-year adjustment to reflect summer 2024 term count	November 2024
Autumn term 2024 data collection	Deadline for local authorities to submit autumn term data to ESFA	6 December 2024
Publication of updates to early years DSG allocations for the new entitlements funding for financial year: 2024 to 2025	In-year adjustment to reflect autumn 2024 term count	March 2025
Publication of updates to early years DSG allocations for the new entitlements funding for financial year: 2024 to 2025	Update to final funding allocation for 2024 to 2025	July 2025