Ministers are proposing to change the eligibility criteria for disadvantage, so that all children who would be eligible for free school meals are entitled to 15 hours of free early education a week. All looked-after children will also be offered a place.
If the plan goes ahead, 140,000 more children will have access to the free entitlement from the age of two.
Next month, the Government will launch a consultation on changes to the Code of Practice for the free entitlement for three-and four-year-olds, to include plans to change the eligibility criteria for two-year-olds.
The revised Code of Practice will come into force in September 2012.
Since last September, 15 per cent of all disadvantaged two-year-olds in England have been entitled to 15 hours of early education a week.
The expansion of free early education for two-year-olds, is aimed at ensuring that children from poorer backgrounds have access to high quality early education, which ministers say means that they are more likely to start school ready and able to learn.
Foundation Stage Profile statistics show that fewer than 50 per cent of children living in the most deprived areas achieve a good level of development at the age of five, compared with nearly 70 per cent of five-year-olds living in the least deprived areas.
Children’s minister Sarah Teather said, ‘Early education and childcare is crucial to a child’s development, giving them the opportunity to learn, thrive and play. But far too many children, many from disadvantaged backgrounds, are starting primary school without the skills they need to do well. Evidence shows that attainment gaps can open up as early as 22 months and persist through school.
‘If we are to tackle this attainment gap and reduce social inequalities, it’s vital we get children from the poorest backgrounds, including those in care, into high quality early education. Today’s announcement is a real step forward and will give the most disadvantaged children access to high quality early education at a younger age.’
Under the plans, £331m will be made available to local authorities to fund places for two-year-olds.
The Government also wants local authorities to consider extending the right to a free place to other two-year-olds, such as disabled children and children with special educational needs.
Provisions to extend the free entitlement to disadvantaged two-year-olds are in teh Education Bill, which has reached the House of Lords. The Government plans for the new entitlement for disadvantaged two-year-olds to come into force in September 2013.
The children’s minister has also announced that the funding available for the Pupil Premium, which is targeted through schools to offer extra support to disadvantaged children, is set to double and will rise to £1.25bn in 2012-13.
The Pupil Premium will increase every year until 2014-15 when it will be worth £2.5bn.
The Government started allocating the funding, which is aimed at closing the attainment gap between children from low-income families and their peers, to schools this year.
Per pupil allocations and the method for determining which children are eligible for the premium are expected to be published shortly.
Purnima Tanuku, chief executive, National Day Nurseries Association, said, 'The criteria proposed reflect the priority of ensuring the most disadvantaged two-year-olds reap the benefits of free early years entitlement.
Private, voluntary and independent nurseries have a vital role to play here, offering specialist services tailored to two-year-olds and with a deep understanding of their needs. So far, members tell us that funding for two-year-old places has generally been at a reasonable level. We must ensure that as the entitlement rolls out this remains the case so that high-quality provision provided by a well-qualified and trained workforce can be sustained.'
Ms Tanuku said that she hoped that the principle of doubling the pupil premium for school age children would be extended to investment in early years.
She added, 'Experience tells us that the most disadvantaged children will need more informal support from their nurseries, for example due to a higher level of special needs. Funding is also critical to ensure practitioners can work in partnership with others, for example by releasing staff to work with a speech therapist where a child has a communications need.'
