Early years teachers’ pay grant: conditions of grant for the 2026 to 2027 financial year
Published 8 July 2026
Applies to England
© Crown copyright 2026
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This publication is available at https://www.gov.uk/government/publications/early-years-teachers-pay-grant-eytpg-grant-for-2026-to-2027/early-years-teachers-pay-grant-conditions-of-grant-for-the-2026-to-2027-financial-year
Introduction
Legislation
The early years teachers’ pay grant (EYTPG) will be paid by the Secretary of State for Education as a grant under section 14 of the Education Act 2002. In accordance with section 16 of the act, the Secretary of State attaches the following terms to the grant payable.
Where this document uses ‘must’, the associated instruction is a condition of the grant. Otherwise, this is supporting guidance to help administer the grant in accordance with its objectives.
The EYTPG is subject to the DfE grant funding agreement terms and conditions.
Purpose
The EYTPG will provide additional funding in 2026 to 2027 to support eligible public sector early years settings with the costs of the schools teachers’ pay award from September 2026.
Period
These conditions of grant cover the financial year 2026 to 2027.
Eligibility: types of settings
The EYTPG will provide additional funding in respect of public sector early years (EY) provision for the following settings:
- schools (maintained and academies)
- governor-run academies and maintained nursery schools
Payments
Calculations
Allocations of this grant have been calculated using the methodology provided in the EYTPG methodology document.
Payment timetable
The EYTPG funding will be paid to local authorities who will then be required to distribute this funding, in full, to eligible early years settings.
Local authority level allocations for this grant will be published in October 2026. We have published a calculator tool to help local authorities determine local distribution ahead of allocations being announced.
We will pay the grant to local authorities in October 2026. This payment is separate to the entitlements funding rates announced in December 2025 and, as such, local authorities are not expected to amend their local funding formulae.
Local authorities will receive one payment to cover the 2026 to 2027 financial year. This payment will be based on part-time equivalent (PTE) rates from the January 2026 schools and early years censuses.
The allocation will not be adjusted.
Assurance
Local authority duty
Local authorities must ensure that all the EYTPG funding they receive is distributed to eligible EY providers listed in Eligibility: types of settings in their area using local PTE data in conjunction with the rates information which have been published by the Department for Education (DfE) in the rates tables.
Local authorities will receive one allocation per age group, based on the published PTE rate per entitlement. Authorities should pass on the same rate to providers based on local PTEs.
The EYTPG must not be used for:
- contingency funding
- local authority central or administration costs
Carry forward
Funds must not be carried forward past 31 March 2027.
Records required
Local authorities are required to maintain and keep clear records of income and expenditure in relation to this grant.
Further information
Books, other documents and records relating to the recipient’s accounts shall be open to inspection by the Secretary of State for Education and by the Comptroller and Auditor General.
The Comptroller and Auditor General may, under section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency and effectiveness with which the recipient has used its resources.
Local authorities and schools shall provide information as may be required by the Secretary of State to determine whether they have complied with these conditions.
Variation
The basis for allocation of grant may be varied by the Secretary of State from that set out above, if so requested by the local authority.
Recovery of funds
If a local authority or setting fails to comply with the terms and conditions set out in this document, the Secretary of State may recover some or all of the EYTPG that has been allocated. This will be notified in writing to the local authority, school or college.
Recoveries will be made by invoice or by offsetting the amount against subsequent payments due from the department.
The recipient must notify DfE immediately through the customer help portal if it becomes aware of any instance of error, suspected fraud or financial irregularity in the use of the funds.
Overpayments
If a local authority identifies that it has been overpaid, it must contact DfE to arrange repayment of the excess.
Where DfE identifies an overpayment, it may seek to recover the excess. The local authority will be notified of this in writing.
Enquiries
For queries relating to these terms and conditions use the customer help portal.