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More than £65 million in early years funding not spent on places in 2023/24

An investigation by the National Day Nurseries Association (NDNA) into early years funding for two to five-year-olds across England reveals council underspends of millions of pounds at a time when settings are facing large hikes in costs.
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Of the 132 local authorities who responded to the NDNA’s Freedom of Information (FOI) request, 75 per cent (99 local authorities) had underspends at the end of 2023/24. Of these, 19 had underspends of more than £1m, while five councils held onto more than £2m.

Essex County Council reported the largest underspend of £10.3 million, however NDNA understands the local authority expected a ‘large proportion’ of this to be adjusted after the end of the financial year – data was collected before this point.

In total, the councils' underspends amounted to more than £65 million.

Source: NDNA

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