Early Years Pupil Premium Provider (EYPP) Guidance

Information for early years providers about the Early Years Pupil Premium (EYPP).


  1. Which settings can claim EYPP?

  2. Who is eligible?

  3. How to find out if a child is eligible. What you need to do.

  4. Spending your EYPP funding.

  5. Tracking children's progress and the impact of EYPP.

  6. FAQs


1. What is the Early Years Pupil Premium?

The EYPP is additional funding for eligible 3 and 4 year olds receiving the free Early Education Funding (EEF). It aims to support providers to narrow the gap between the most and least advantaged children. An hourly rate of 53p per hour for each eligible child will be available (around £300 per year for the full 570 hours per year).

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2. Which Settings can claim EYPP?

All registered early years providers delivering the free Early Education Funding for 3 and 4 year olds are eligible to receive the EYPP. This includes, day nurseries, pre-schools, childminders, maintained and independent school nurseries, and academies.

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3. Who is eligible?

Eligible children will be those who are in receipt of the free Early Education Funding for 3 and 4 year olds and whose parent/carer is in receipt of one of the following benefits;

  • Income Support
  • Income-based Jobseekers Allowance
  • Income related Employment and Support Allowance
  • Universal Credit
  • Support from NASS (National Asylum Support Service) under part 6 of the Immigration and Asylum Act 1999
  • The guarantee element of State Pension Credit
  • Child Tax Credit (with no Working Tax Credit) with an annual family income of no more than £16,190
  • Working Tax Credit run-on

Or if the child:

  • has been looked after by the local authority for at least one day
  • has been adopted from care
  • has left care through special guardianship
  • is subject to a child arrangement order (previously known as residence order) 

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4. How to find out if the child is eligible. What you need to do.

EYPP should be discussed as part of the registration process with all new parents.

This is a voluntary scheme and parents may choose not to complete this form, and it is their right to do so. However, as a provider, you should promote and share with all parents the benefits to their children of receiving EYPP.

Once parents have returned the signed form to you, providers must then submit the details via the Provider Portal Guide (PDF, 804KB) to check whether a child is eligible.

Log in to the Provider Portal, click on Funding, then Actuals tab and open the current block.

Next, either select the child’s name or, if they are new to the setting click “add child” and continue to add the child’s details as normal.

Screenshot of the Early Years Provider Portal 1
Early Years Provider Portal 1


Screenshot of the Early Years Provider Portal screen shot 2
Early Years Provider Portal 2

Please ensure you also complete the new Parent/Carer Details tab (this can be found under the FUNDING and Actuals tabs in an individual child’s record.

Screenshot of the Early Years Provider Portal screen shot 2
Early Years Provider Portal 3

For further guidance on using the Provider Portal, please refer to the Milton Keynes Council Early Education Funding - Provider Portal Guide (PDF, 804KB)

The Local Authority will then check EYPP eligibility each block and make a payment to the childcare provider of £0.53 per hour if the parent/carer is eligible.

This payment will be made as part of the final block payment to providers in August, December and March.

Funding for children  who have been adopted from care, have left care through special guardianship or are subject to a child arrangement order (previously known as residence order) will be funded through the portal as described above. 

Funding for looked after children (LAC), will be identified and paid through the Virtual School team. In this instance, an Early Years Funding Access form (DOCX, 171KB) must be completed and returned to the Virtual School Head Teacher by email.

A factsheet (DOCX, 39KB) with more information is available to download.

Providers can also request support from the Virtual School team directly.

Parents of children who are eligible under the adoption, special guardianship and child arrangement orders criteria should be able to produce written evidence of their eligibility. You should retain copies for audit purposes.

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5. Spending your EYPP funding.

Local Authorities involved in the early implementers of EYPP pilot produced a selection of case studies. These can be used when considering potential projects.

Please refer to the Milton Keynes Council website EYPP page to download and view case studies as well as other useful information from Early Education.

The Education Endowment Foundation have produced an Early Years Toolkit that provides guidance on how to use resources to improve disadvantaged children’s learning. Providers can use it to access information and research related to a number of topics. The Toolkit allows the user to filter these topics in terms of cost, average impact on learning, and the strength of the supporting evidence.

To be effective the EYPP in its early stages may need to be allocated to:

  • Staff development to improve their capacity to observe children as learners and deliver planned interventions
  • Direct support for children or interventions in the setting
  • On engaging with parents to deliver a better home learning environment, with practitioners modelling effective behaviours

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6. Tracking children's progress and the impact of EYPP.

From September 2015 Ofsted inspections will require providers to show evidence of "how effectively leaders use additional funding, including the early years pupil premium, and measure its impact on narrowing gaps in children’s outcomes.” (p33, Early Years Inspection Handbook, Ofsted, September  2015). Use of EYPP will be included as part of the ‘effectiveness of leadership and management’ judgement.

Therefore, leaders and managers will need to ensure there are systems in place to track the progress and achievement of children throughout the Early Years Foundation Stage. Tracking progress is an essential tool in identifying those children who are at risk of underachievement, to inform the use of EYPP and to gauge the impact of early interventions.

When developing tracking systems, leaders and managers should consider:

  • What does tracking seek to do?
  • What does progress tracking for individual children look like?
  • How will I analyse the progress of specified groups?
  • Are observations and assessments regular, precise and accurate?
  • How often do we need to assess, monitor and undertake the analysis?
  • How can I use the information to plan interventions and the use of EYPP?

Settings must be able to talk with inspectors about the progress of individual children as well as groups and sub-groups. They will need to demonstrate to inspectors that additional funding is used effectively to narrow attainment gaps.

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7. FAQs

My last Ofsted was less than good. Can I still receive EYPP?

Yes, if parents/guardians have completed, signed and return the voluntary registration form then you may proceed to submit these details via the Provider Portal to begin the process of claiming Early Years Pupil Premium for that child.

How you have used EYPP funding will form part of your next Ofsted inspection.

You must look at how you are able to track progress and be prepared to demonstrate and explain the impact of your chosen EYPP project.

Who should apply for the EYPP? Can I do it on behalf of the parents?

Providers are not able to submit information into the Provider Portal and begin to process a claim for EYPP if a parent/carer has not signed and returned the necessary information from the EYPP voluntary registration form.

EYPP is a voluntary scheme, and parents may wish to opt out of this, and it is their right to do so. However, by making this permission request part of your standard admission documentation, you can avoid parents feeling singled out.

When talking to parents about EYPP you are advised to use your professional experience and avoid using negative terms such as ‘deprived’.

Promote the scheme in your setting and ensure all parents are fully informed of the benefits to their children.

I also receive Deprivation funding. Will I get EYPP too?

Not necessarily. EYPP is allocated to individual children based on eligibility criteria, whereas the Deprivation funding is linked to postcode of the children on your January Headcount.

You may have children in your setting who meet the EYPP eligibility criteria and others who do not.

To be able to check a child’s eligibility and to claim EYPP you must collect the necessary information from the voluntary registration form and ensure parent/guardian has signed the Declaration.

I have funded 2 year olds. Do they automatically become eligible for EYPP when they turn 3 or do they still need to apply?

Funded 2 year olds will not automatically become eligible. If parents of two year old funded children are in receipt of Working Tax Credit, then those children will not be eligible to receive EYPP.

If children who have received EYPP move on to another setting or school do I have to let that provider know that the child has been in receipt of EYPP?

Yes, the parent/guardian has provided the necessary information and signed their consent for you to apply for this funding, however if the child moves to another provider then the funding will follow them. If this is the case in your provision then please contact the Nursery Education Funding Team or telephone 01908 254522 for advice.

What if I knew a child was eligible but the parent opted out and did not give permission to apply? Should I let the school/setting know that too?

You should let the school/setting know if a parent/guardian has not yet given signed consent to check eligibility.

There is no ‘carry forward’ from Early Years provision to School. When a child starts school, then a new application must be processed as the forms for school Pupil Premium are different.

What should the funding be spent on?

Funding must be spent on a project, resource, scheme that will benefit those eligible children. It may be spent on several small projects if necessary, but you must consider how this will benefit the child and the positive impact it will have on their progress.

Using the information from the Education Endowment Foundation Toolkit will support your research and provide sample case studies of previous projects.

A selection of other case studies from EYPP pilot projects relevant to the early years age group are also available. Please talk to your Early Years Consultant or Early Years Improvement Officer about these.

Useful Contacts

  • For queries relating to payments and claims contact Julie Godwin or telephone 01908 254522.
  • For enquiries and support relating to EYPP for Looked After Children contact Michele Mellor.


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Last Updated: 7 May 2021