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Councils face cuts to early intervention funding

Where the Department for Education has found 100m for capital funding to support early years settings to expand places for two-year-olds, is unclear.

While it is understood to be ‘underspend’ funding from within the department,some local authorities are concerned that funding to encourage providers to offer places for disadvantaged two-year-olds is actually being redistributed from existing funding for services for children and families.

The Government confirmed earlier this year that funding for two-year-old places, which is currently included in the Early Intervention Grant, will from April 2013 be transferred to the Dedicated Schools Grant, which unlike funding in the EIG, is ring-fenced for spending on education.

But in the same week that the Government appears to have found extra money towards expanding places for disadvantaged  two-year-olds, elsewhere there are reports of cuts to next year’s EIG, which funds children’s centres, as well as other services for children and families, such as short breaks for disabled children.

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