The total of £525m for 2013/14 is split into place-based and trajectory funding to build capacity for 2014.
Although Elizabeth Truss, education and childcare minister, has won praise from early years organisations for urging councils to pass on the full rate of funding to the frontline, providers remain concerned about whether the rates on offer will cover their costs.
The Department for Education has confirmed that councils will receive a flat rate of funding, which it calculates as an average hourly rate of £5.09 for each two-year-old place. Places will be targeted at good and outstanding providers. A snapshot analysis of the figures by Nursery World suggests, for example, that Darlington would receive £4.85 an hour per child, while in Kensington and Chelsea the rate would be £6.07 (based on 15 hours a week for 38 weeks.)
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