# The School and Early Years Finance (England) Regulations 2025, Regulation 37: Early years 96% requirement

Extent: E+W

(1) In determining budget shares and amounts allocated in accordance with regulation 11(9), a local authority must comply with the formula set out in paragraph (2) separately for each relevant group.
(2) The formula is (A – B) / C is no less than 96% of D, where—
(a) A is the total of—
(i) all budget shares and amounts determined by the local authority under regulation 11(9) in respect of the relevant group;
(ii) any amount deducted by the local authority under paragraph 27 of Schedule 2 (early years contingency fund), which it intends to distribute to early years providers in respect of the relevant group; and
(iii) any amount of the local authority’s special educational needs inclusion fund which the local authority intends to distribute to early years providers in respect of the relevant group;
(b) B is the total of—
(i) where the calculation is being made in respect of three and four year olds, the maintained nursery school supplement;
(ii) any amount included in accordance with regulation 34(1) or (6) (early years pupil premium) in respect of the relevant group; and
(iii) any amount included in accordance with regulation 35(1) (disability access fund) in respect of the relevant group;
(c) C is the total number of hours of attendance of children in the relevant group predicted by the local authority under regulation 32(1) (special arrangements for early years pupils and children); and
(d) D is the hourly unit funding rate in relation to the relevant group, notified to the local authority in the early years block.
(3) A local authority may alter the operation of this regulation if authorised to do so by the Secretary of State under regulation 42(1)(q).

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Source: https://www.legislation.gov.uk/uksi/2025/42/regulation/37 (the official version)
Page: https://openlegislation.uk/school-and-early-years-finance-england-regulations-2025/regulation-37
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.