{
  "url": "https://openlegislation.uk/school-and-early-years-finance-england-regulations-2026/regulation-38",
  "json_url": "https://openlegislation.uk/school-and-early-years-finance-england-regulations-2026/regulation-38.json",
  "legislation": "uksi/2026/37",
  "legislation_title": "The School and Early Years Finance (England) Regulations 2026",
  "legislation_url": "https://openlegislation.uk/school-and-early-years-finance-england-regulations-2026",
  "path": "regulation/38",
  "kind": "regulation",
  "number": "38",
  "heading": "Early years 97% requirement",
  "text": "(1) In determining budget shares and amounts allocated in accordance with regulation 12(9), a local authority must comply with the formula set out in paragraph (2) separately for each relevant group.\n(2) The formula is (A – B) / C is no less than 97% of D, where—\n(a) A is the total of—\n(i) all budget shares and amounts determined by the local authority under regulation 12(9) in respect of the relevant group;\n(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\n(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;\n(b) B is the total of—\n(i) where the calculation is being made in respect of three and four year olds, the maintained nursery school supplement;\n(ii) any amount included in accordance with regulation 35(1) or (6) (early years pupil premium) in respect of the relevant group; and\n(iii) any amount included in accordance with regulation 36(1) (disability access fund) in respect of the relevant group;\n(c) C is the total number of hours of attendance of children in the relevant group predicted by the local authority under regulation 33(1) (special arrangements for early years pupils and children); and\n(d) D is—\n(i) in relation to three and four year olds, the hourly unit funding rate specified in relation to the local authority in the column headed “2026 to 2027 3 and 4-year-old funding rate without termly funding adjustment” of the table entitled “3 and 4-year-old entitlements 2026 to 2027 hourly funding rates”; and\n(ii) in relation to each of the other relevant groups, the hourly unit funding rate in relation to that group as notified to the local authority in the early years block.\n(3) A local authority may alter the operation of this regulation if authorised to do so by the Secretary of State under regulation 43(1)(q).",
  "extent": "E+W",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "Reg. 38 in force at 11.2.2026, see reg. 1(2)"
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "The table can be found in the spreadsheet entitled “Local authority funding rates under the 3 and 4-year-old funding formula, 2-year-old and under 2s funding formula and maintained nursery school (MNS) funding formula” published by the Secretary of State on 15th December 2025 at https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fassets.publishing.service.gov.uk%2Fmedia%2F693ffb70adb5707d9f33d776%2F2026-27_Early_Years_Funding_Rates_and_Step_by_Step_calculations.xlsx&wdOrigin=BROWSELINK. A printed copy may also be inspected at the Department for Education, Sanctuary Buildings, Great Smith Street, London SW1P 3BT, on request."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2026/37/regulation/38",
    "retrieved_at": "2026-10-28T21:07:21.501156+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}