DfE Update local authorities: 23 July 2025
Published 23 July 2025
Applies to England
© Crown copyright 2025
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This publication is available at https://www.gov.uk/government/publications/dfe-update-23-july-2025/dfe-update-local-authorities-23-july-2025
1. Information: Early years funding: key changes to the local funding rules for 2026 to 2027
To support local planning, we can confirm the following key changes to the local funding rules for 2026 to 2027, ahead of the annual funding rates publication:
- from 2026 to 2027 we will move to a 97% minimum pass-through requirement
- from 2026 to 2027 we will also be updating the Schools and Early Years finance (England) regulations so that 28 February will be the new statutory deadline for local authorities to confirm local funding rates to providers. This moves the expectation as set out in 2025 to 2026 operational guidelines, on to a statutory footing
- we also want to highlight our recent announcement in 4 June 2025 DfE Update that we are changing the early years census from an annual to a termly census for 2026 to 2027
- national funding rates for 2026 to 2027 will be confirmed in autumn 2025. We expect these rates to be published to similar timelines as recent years, to ensure they can account for key information that will become available in autumn 2025
2. Information: 16 to 19 Bursary Fund guide updated
In response to your feedback, we have made some updates to the 16 to 19 bursary fund guide for academic year 2025 to 2026.
The updates do not change any of the funding rules but are intended to improve clarity on some points.
This includes how you can manage the requirement for receipts and the discretion about whether you undertake household income checks annually for the discretionary bursary, or just once at the beginning of a student’s study programme.
The updates give more clarity to support your decision making if a student moves course or changes course level during their studies with you.
3. Information: Important update on PE and Sport Premium digital expenditure reporting return
Thank you to the many schools who have already completed the Primary PE and sport premium expenditure reporting return.
We are aware of digital issues that a number of schools have experienced accessing the return and we thank you for your patience while these are being resolved.
The deadline will remain on Thursday 31 July as planned.
Schools that have been affected by these issues will be contacted by us in September to support them in making the return.
Many schools have found it helpful to refer to the PE and sport premium for primary schools guidance when completing the returns.
4. Reminder: 16 to 19 funding allocation and outturn statement R10 2024 to 2025
We notified you in the 11 December 2024 ESFA Update that following insight from user research, outturn statements will only be available after R14 for the 2024 to 2025 funding year.
Therefore, the allocation R10 outturn statement will not be issued in August 2025 as in previous years.
The 16 to 19 funding claim reports will still be available in Submit learner data.