Early years leaders value the Early Years Pupil Premium (EYPP), but some face practical barriers to claiming it and planning how to use the funding effectively. This is according to new research published today by the Education Endowment Foundation (EEF) and conducted by IFF research.
The report, based on a survey of more than 500 early years professionals and 18 in-depth interviews with setting leaders, found very high awareness of the funding, with 95% of respondents saying they were aware of EYPP.
EYPP is additional funding paid to early years settings – including nurseries, school-based settings, and childminders – to improve outcomes for socio-economically disadvantaged children from nine months upwards.
The findings come as the government prepares to:
- increase the funding available per eligible child from 1 April, following a previous uplift in April 2025.
- launch the ‘test and learn’ programme in September to assess how the increased funding is used.
While most respondents aware of the funding also applied for it (71%), there was a big difference between setting types: nearly all leaders in school-based or group-based nurseries had done so, compared with fewer childminders (38%).
Nearly one in five (19%) respondents said they believed some children they work with may be eligible but had not had an application submitted on their behalf.
Respondents most often cited practical barriers to accessing the funding, including parents being unwilling to share personal information, uncertainty about eligibility, and variation in local authority processes.
Funding often used to meet immediate needs, despite ambition to invest more strategically
The study found that EYPP funding is most commonly used to pay for physical or digital resources (cited by 74% of respondents), staff deployment (53%), and professional development (48%). Spending patterns also differed by setting type.
School-based and group-based settings were more likely to invest in targeted interventions, specialist support, and staff training aimed at improving the quality of practice. Smaller providers and childminders were more likely to spend funding on trips, resources, or meeting children’s immediate needs like buying clothes or food.
Almost all settings reported monitoring the impact of their EYPP spending, most often by observations of children, tracking their progress, or through discussions with staff and parents. However, fewer reported drawing on research evidence or national guidance when deciding how to allocate the funding.
Planning challenges for settings
Despite recognising the value of EYPP, many leaders interviewed described structural barriers that make planning its use more difficult.
Leaders reported that the funding is typically paid in arrears, in small instalments, and often bundled with other funding streams. Leaders said this can make it difficult to predict how much they will receive or to commit to longer-term activity.
Some smaller providers also reported that limited administrative capacity was a barrier.
New planning tool to support evidence-informed spending
To support settings to plan how their use their EYPP funding, the EEF has also published a new planning tool.
The tool is designed to help leaders identify priorities, consider evidence-informed approaches, and monitor the impact of their spending. It builds on the EEF’s existing guidance on the effective use of the Early Years Pupil Premium.
Professor Becky Francis CBE, CEO of the Education Endowment Foundation, said: