Used well, EYPP can make a meaningful difference. Used poorly or reactively, it risks becoming another small pot of funding that disappears without impact. The key is not how much money is available, but how thoughtfully it is used.
What is the Early Years Pupil Premium?
The Early Years Pupil Premium (EYPP) is additional government funding paid to early years providers to improve outcomes for disadvantaged children from nine months up to age four, depending on which funded entitlement they access. This includes eligible children receiving the working parent entitlement from nine months, disadvantaged twoyearolds, and all three and fouryearolds taking up their universal funded hours. The purpose remains the same: to narrow early attainment gaps and strengthen children’s learning, development and well-being before they reach statutory school age.
EYPP is paid to settings per eligible funded hour, up to a maximum of 15 hours per week (or 570 hours per year) for most children. While the amount per hour is modest (currently £1 per funded hour), it can have significant impact when used strategically. In April 2025, the Department for Education (DfE) increased funding for the EYPP by 45% to a maximum of £570 per child per year. What matters most is not the size of the funding pot, but how intentionally it is directed towards improving outcomes for disadvantaged children.
Who is eligible?
Children may be eligible for EYPP if their parents or carers receive certain benefits, including:
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Universal Credit (subject to earnings thresholds)
- Child Tax Credit (with income limits and no Working Tax Credit)
Children who may also qualify include those:
- Looked after by the local authority
- Adopted from care
- Under a special guardianship or child arrangements order
Eligibility is usually checked through parent declaration forms and local authority systems. Clear communication with families is essential, as many parents are unaware that their child qualifies or may feel uncomfortable sharing information.
How does EYPP reach settings?
EYPP is paid to local authorities, who then distribute it to eligible early years providers. Funding is typically paid termly alongside other early years funding streams. Settings are not expected to account for every penny in the same way as maintained schools, but they are expected to demonstrate how EYPP is being used to support disadvantaged children and improve outcomes. Inspectors will look for evidence that funding decisions are informed, purposeful and reviewed regularly.
Using Early Years Pupil Premium effectively: what works?
One of the most common mistakes with EYPP is trying to use it to ‘buy things’ for individual children. While additional resources can play a role, evidence consistently shows that quality interactions, skilled adults and targeted support have the greatest impact.
Here are some best practice ways to invest your EYPP wisely:
1. Invest in staff knowledge and skills
High-quality adult interaction is one of the strongest predictors of positive outcomes for disadvantaged children and those with SEND.
EYPP can be used to support:
- Targeted staff training
- SENCO development
- Communication and language strategies
- Trauma-informed practice
- Behaviour support approaches rooted in emotional development
Even small investments in professional development can have a lasting impact across many children, not just those currently eligible for EYPP.
2. Prioritise communication and language
Delayed speech and language development is strongly linked to disadvantage, and early gaps can widen quickly if left unaddressed.
Effective uses of EYPP include:
- Small-group language interventions
- Staff training on modelling language and extending vocabulary
- Storytelling and shared reading approaches
- Time for focused, high-quality conversations
Supporting communication also benefits children with SEND and those learning English as an additional language (EAL).
3. Strengthen the key person approach
Strong relationships underpin learning and development for disadvantaged children and emotional security is particularly important. EYPP can support:
- Reduced key person ratios for targeted groups
- Time for key person planning and reflection
- Support during transitions, including home visits or additional settling sessions
Consistency and attuned relationships help children feel safe enough to engage and learn.
4. Target support rather than spreading funding thinly
EYPP is often most effective when used strategically rather than diluted across the whole setting.
This might involve:
- Identifying individual children’s priority needs through observation and assessment
- Agreeing clear, measurable aims for EYPP spending
- Reviewing impact regularly and adjusting approaches
This does not mean labelling children, but ensuring support is intentional and addresses their needs.
5. Support inclusion for children with SEND
For children with SEND, EYPP can complement other funding streams by supporting early intervention and inclusive practice.
Examples include:
- Sensory resources matched to individual needs
- Training for staff on specific needs
- Time for planning with SENCOs and external professionals
- Adaptations that support participation rather than separation
EYPP should not replace statutory SEND funding, but it can enhance inclusive practice when used thoughtfully.
Working with families
Parental engagement is another area where EYPP can have a strong impact. Supporting families does not mean trying to ‘fix’ them, but building respectful partnerships.
You might use EYPP to:
- Create and share resources or activities for home learning
- Support transition into the setting
- Offer workshops or informal sessions
- Improve communication between home and the setting
Simple, consistent communication often has more impact than overcomplicated initiatives.
Reviewing impact and being realistic - Early Years Pupil Premium
With staffing pressures and increasing demand, it is important to be realistic about your ambitions for EYPP. Funding is modest and cannot possibly be a ‘cure-all.’ Settings should not feel pressured to demonstrate dramatic short-term results but should instead, focus on:
- Demonstrating a clear rationale for spending decisions
- Evidencing thoughtful planning
- Reflecting on what is working and what is not
- Making adjustments based on the children’s changing needs
Inspectors are looking for intentionality, not perfection.
The Early Years Pupil Premium is a bonus which settings can use to strengthen relationships, build staff confidence and target real needs. By focusing on people rather than products, and on long-term development rather than quick fixes, EYPP can become a meaningful part of inclusive, high-quality early years practice.
References and more information:
Reflective practice in early years
Education Endowment Trust – Early Years Pupil Premium
How we look at the use of Early Years Pupil Premium (EYPP) in our inspections of early years settings - Ofsted
Early years pupil premium: guide for local authorities
