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The move has been welcomed by the All-Party Parliamentary Group for Nursery Schools, Nursery and Reception Classes (APPG), which has been lobbying for extra funding for the 400 nursery schools that remain.
However, the move has been met with dismay by early years organisations representing thousands of private and voluntary nurseries, who have been granted no extra funding in the move.
The APPG said that the extra funding was in response to their argument that nursery schools needed the certainty of funding for the full school year when offering places to children for 2019-20.
Nursery schools have been receiving an extra £55m a year since 2017 when the early years single funding formula was introduced but this was due to end in March 2019.
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