The move follows a Government consultation with parents, teachers and local authorities over plans for all four-year-olds to start reception the September after their fourth birthday (News, 22 October).
Under changes to the Schools Admissions Code, local authorities will have a legal duty to give parents flexibility and choice over school starting dates.
Parents who do not want their four-year-old to start school will be entitled to free, full-time childcare.
Local authorities will have to allow parents of children who are offered a place at a school before the child is of compulsory school age to defer their child's entry until later in the school year.
The revised admissions code will come into force in February 2010 and apply to admission arrangements from September 2011.
The changes follow the findings of the primary review by Sir Jim Rose, which found that many children born in July or August are at a greater risk of poor outcomes.
Early years expert Wendy Scott said, 'The offer of real choice to parents as to when their children should start school is welcome. However, deferred admissions have potential cost implications well beyond the £80m on offer, not least to pay for the administrative burden of finding out what parents want. Few parents will feel that it is an open choice, as they will not want to risk losing a place at their preferred primary school, particularly if it is oversubscribed.'