Story perspectives

DfE Orders Unused Free-Childcare Money Routed to Nurseries

7/13/2026

Summary

Story summary

The Department for Education will require councils to pass on any unspent free-childcare funding to nurseries from 2027/28.
A 2023/24 audit found 75 percent of 132 local authorities left £65 million of allocated funds unused, prompting a potential £350 annual saving for benefit-receiving or SEND families.
Nursery providers say the change will cut out-of-pocket costs for families.
The Early Years Alliance calls the previous underspending unjust and urges additional investment.

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Story summary

The Department for Education will require councils to pass on any unspent free-childcare funding to nurseries from 2027/28.
A 2023/24 audit found 75 percent of 132 local authorities left £65 million of allocated funds unused, prompting a potential £350 annual saving for benefit-receiving or SEND families.
Nursery providers say the change will cut out-of-pocket costs for families.
The Early Years Alliance calls the previous underspending unjust and urges additional investment.