Sure Start local programme funding has been rolled into the General Sure Start Grant (GSSG) from 2006/2007, which will also include funding for workforce transformation during this period.
However, details of local authority allocations from the 125m Transformation Fund have not yet been released. A DfES spokesman said they would be announced 'in due course'.
Funding for extended schools and children's centres is also now included in the capital funding of the GSSG, which is to be used by local authorities to deliver the Government's ten-year childcare strategy.
The funding will be 1,111m for 2006 to 2007 and 1,045m for 2007 to 2008.
A letter sent out to local authority children's services said that the capital funding of the GSSG would be 421m for 2006 to 2007 and 392m for 2007 to 2008.
It stated, 'Local authorities will have the freedom to decide how much capital to spend on each area, that is children's centres, extended schools, free early years provision, and to improve the quality, sustainability and accessibility of childcare services.'
Allocations are based on projected child population numbers, with weighting for rural and disadvantaged areas.
Sue Ritson, head of early years in Richmond-upon-Thames, said that the fact that local authorities could choose which area to spend money on was 'positive'.
'It reflects the fact that the Government wants local authorities to know their area and know best how funding can be used to target what's needed.'
However, John Thorne, head of early years and childcare services in Nottinghamshire, said he envisaged that the ring-fencing of money for Sure Start Local Programmes within the GSSG would create problems with the roll-out of the second phase of children's centres.
Mr Thorne said he feared the ring-fencing of money for local programmes would create a two-tier children's centre system.
He added, 'If we're not careful we'll have Rolls Royce children's centres for existing programmes and not much money left for the new ones.'
