Guidance

DSG: technical note 2025 to 2026

Published 18 December 2024

Applies to England

1. Introduction

This technical note sets out details of the calculation of dedicated schools grant (DSG) allocations for the financial year 2025 to 2026. 

The DSG allocations for 2025 to 2026 are made up of: 

• the schools block, based on the primary units of funding (PUF), and secondary units of funding (SUF), and premises funding announced in November 2024, and growth and falling rolls funding 

• the central school services block (CSSB), based on the units of funding and total historic commitments funding announced in November 2024 

• the high needs block, based on the allocations announced in November 2024 with the basic entitlement element of the national funding formula (NFF) updated for the number of pupils in the October 2024 school census

• the early years block, based on the early years funding rates published in December  2024 and made up of items 1 to 8 below:

1. the 15 hours entitlement for eligible working parents of children from 9 months up to 2 years old (to be extended to 30 hours from 1 September 2025) 

2. the 15 hours entitlement for eligible working parents of 2-year-old children (to be extended to 30 hours from 1 September 2025) 

3. the 15 hours entitlement for families of 2-year-olds receiving additional support (formerly known as the 2-year-old disadvantaged entitlement) 

4. the universal 15 hours entitlement for all 3 and 4-year-olds 

5. the additional 15 hours entitlement for eligible working parents of 3 and 4-year-olds 

6. funding for the early years pupil premium (EYPP) for 3 and 4-year-olds, 2-year-olds and under 2s 

7. funding for the disability access fund (DAF) for 3 and 4-year-olds, 2-year-olds and under 2s 

8. supplementary funding for maintained nursery schools (MNS) for 3 and 4-year-olds

You can view the provisional allocations for the schools block, CSSB and high needs block at: national funding formula tables for schools and high needs: 2025 to 2026 and the early years block at early years funding 2025 to 2026.

We have published the 2025 to 2026 DSG allocations for each local authority. This shows the DSG prior to academies’ recoupment from the schools block.

2. Calculating the 2025 to 2026 dedicated schools grant (DSG)

There is information on the pupil numbers used for the schools block, CSSB, high needs block NFF basic entitlement factor, and early years block in section 11. We have published a pupil number tool. 

Each unit of funding is rounded to the nearest penny. 

Final DSG allocations are rounded up to the nearest £1. 

Pupil numbers are rounded to 2 decimal points.

3. Payment arrangements

We will pay the grant to local authorities in 13 instalments on the dates set out in section 12. 

Payments are based on the total DSG allocation notified in December 2024 minus recoupment for academies and deductions for high needs places. 

4. Schools block

4.1  Schools block allocations 

The PUFs for each local authority are multiplied by:

• the number of pupils in reception to year group 6 from the October 2024 school census plus 

• pupils aged 4 to 10 not assigned to a year group from the October 2024 school census 

The SUFs for each local authority are multiplied by:

• the number of pupils in year groups 7 to 11 from the October 2024 school census plus 

• pupils aged 11 to 15 not assigned to a year group from the October 2024 school census 

Pupils in special units and resourced provision are included in the pupil counts above. We count reception pupils as one full-time equivalent (FTE) irrespective of the hours they attend.

We then add:

• the actual 2025 to 2026 funding for the premises factors (as this is based on historic spend), as published in the NFF summary table in November 2024 

• growth and falling rolls funding using the differences between the primary and secondary numbers on roll in the local authority in the October 2023 and October 2024 school censuses as described in annex B of the schools block national funding formula (NFF) technical note published in November 2024 

We then deduct:

For those local authorities who have opted into the central system where national non-domestic rates (NNDR) are paid by the department directly to billing authorities on behalf of all maintained schools and academies from 2022 to 2023 onwards: 

• the NNDR figure for each local authority as set out in the 2025 to 2026 DSG allocations 

For those local authorities who have not opted into the new system: 

• the NFF NNDR value for all academies in the local authority from the schools block 

• for each subsequent DSG update, local authorities with in-year academy converters will have their NFF NNDR deduction increased pro rata for the period of the financial year that the converters are academies

4.2  Arrangements for academies recoupment 2025 to 2026 

We will calculate amounts for recoupment based on the individual schools budget (ISB) share, excluding business rates, shown in the authority proforma tool (APT) submitted in January 2025. 

We will provide local authorities with details of the proposed recoupment amount, and relevant calculations, by the end of April 2025. We will publish detailed recoupment guidance in early 2025. 

5. Central school services block (CSSB)

For each local authority, we multiply the CSSB units of funding (which includes funding for additional copyright licence costs) by the number of pupils recorded in the October 2024 school census: 

• in reception to year group 11, and 

• aged 4 to 15 not assigned to a year group 

We have added the resulting allocation to the actual funding for historic commitments published in the NFF summary table. 

We will continue to make manual adjustments to the actual funding for historic commitments, subject to specific evidence submitted by local authorities of ongoing costs which they would not have been able to unwind since 2013 to 2014. This protects allocations from a reduction below the value of these costs. 

The School and Early Years Finance (England) Regulations 2025 will set out how this funding may be used.

6. High needs block

The high needs funding block is a single block for local authorities to spend on provision for pupils and students aged 0 to 25, with high needs. Before any deductions are made, the block includes funding for pre-16 and post-16 places in: 

• maintained mainstream schools (pre-16 places in special units and resourced provision and post-16 high needs places) 

• maintained special schools (pre-16 and post-16 places) 

• pupil referral units (PRUs) 

• mainstream academies and free schools (pre-16 places in special units and resourced provision and post-16 high needs places) 

• special academies (pre-16 and post-16 places) 

• special free schools (pre-16 and post-16 places): information on how this is calculated is available in the special free schools adjustments guide for local authorities 

• non-maintained special schools (NMSS) (pre-16 and post-16 places – £6,000 of the £10,000 per place only) 

• alternative provision (AP) academies (pre-16 and post-16 places) 

• further education (FE) colleges (including sixth form colleges and 16 to 19 academies), independent learning providers (ILPs) and special post-16 institutions (SPIs) (post-16 places only) 

• AP free schools (pre-16 places, excluding those at schools opened during the 2024 to 2025, or 2025 to 2026 academic years)

In addition to the funding for places described above, the high needs block also includes top-up funding, independently allocated and administered by local authorities for pupils and students occupying the places in the settings listed above, to reflect the additional costs of supporting individual pupils’ or students’ needs. 

It also includes: 

• funding for children and young people placed in independent schools, independent AP (unless the places are commissioned directly by schools) and hospital education (including independent hospital education provision funded by the local authority) 

• funding for central high needs services and budgets

6.1  High needs block allocations 

We have updated the allocations for the basic entitlement element of the high needs national funding formula to use pupil number data from the October 2024 school census.

6.2  Import and export adjustments 

The allocations announced in November 2024 included import and export adjustments to reflect where high needs pupils and students are educated, as explained in the high needs technical note.

As part of the import and export adjustment, we treat pupils attending NMSSs and SPIs as exports to the department, to reflect that funding for these schools and colleges is allocated directly by the department. The department will continue to directly fund NMSS and SPI places in line with the principles outlined in the  high needs funding: 2025 to 2026 operational guide. 

In the summer term 2025, we will update the import and export adjustments to reflect the latest data from the January 2025 school census and the R06 return of the 2024 to 2025 individual learner record (ILR), which will include the exports to the department for NMSSs and SPIs.

6.3  High needs place funding deductions 

The high needs deductions section of the DSG allocations table shows the place funding deductions for the final 5 months of academic year 2024 to 2025 for pre-16 places directly paid for by the department to schools and colleges and the final 4 months for post-16 places. 

These numbers have also been used to give provisional deductions for the first 7 months of academic year 2025 to 2026 (the first 8 months for post-16 places). In April 2025, we will update both sets of deductions to reflect further academy conversions. We will also update the deductions for academic year 2025 to 2026 to reflect the outcome of the 2025 to 2026 place change notifications process. 

Special units and resourced provision are funded on the places reported and determined through the place change notification process, not on the number of pupils reported on the 2025 to 2026 APT. The pupil data from the APT is only used to identify whether places are occupied by pupils on the school roll funded at £6,000 or funded at £10,000 otherwise.

6.4  Alternative provision free schools with high needs places  

The department directly funds places in AP free schools opened during the 2024 to 2025 or 2025 to 2026 academic years, with no deduction from DSG. 

We will make deductions from DSG for pre-16 places in AP free schools opened before or during the 2023 to 2024 academic year. Deductions are from the pupil’s home local authority, based on school census data. We will notify local authorities of these deductions in April 2025. 

No deductions will be made from local authorities’ 2025 to 2026 DSG for post-16 high needs places in AP free schools; these will be funded directly by the department.

6.5  Additional  funding for special free schools      

Additional funding for new and growing special free schools is allocated to both local authorities where a pupil lives and where the school is located. Information on how this is calculated is available in the special free schools adjustments guide for local authorities. 

The additional funding for special free schools column provides provisional allocations based on the schools in scope for the adjustment: schools no longer in scope of this adjustment are listed in the special free schools adjustment guide.

In the summer term 2025 we will update the additional funding for special free schools with the latest data from the January 2025 school census, October 2024 school census, 2024 to 2025 academic year high needs places and 2025 to 2026 academic year high needs places (or capacity as recorded on GIAS if lower than places funded). 

6.6  Hospital  education 

We may make some minor adjustments to the hospital education funding amounts included in the national funding formula allocations based on information submitted by local authorities through the place change notification process in November 2024. 

7. Early years block

7.1  Funding for the government-funded early years entitlements 

The hourly rates for the early years government-funded entitlements were announced in December 2024  as set out in the early years funding rates and step-by-step calculation: 2025 to 2026 funding output tables.

Funding for the early years government-funded entitlements  includes:

• the 15 hours entitlement for eligible working parents of children from 9 months up to 2 years old (due to be extended to 30 hours from 1 September 2025) 

• the 15 hours entitlement for eligible working parents of 2-year-old children (due to be extended to 30 hours from 1 September 2025) 

• the 15 hours entitlement for families of 2-year-olds receiving additional support (formerly known as the 2-year-old disadvantaged entitlement) 

• the universal 15 hours entitlement for all 3 and 4-year-olds 

• the additional 15 hours entitlement for eligible working parents of 3 and 4-year-olds 

• funding for the EYPP for 3 and 4-year-olds, 2-year-olds and under 2s 

• funding for the DAF for 3 and 4-year-olds, 2-year-olds and under 2s 

• supplementary funding for MNS for 3 and 4-year-olds

The indicative allocations for the 3-and-4 year-olds universal and additional hours entitlements and the 2-year-old entitlement for families receiving additional support are calculated as follows: 

• the number of part-time equivalents (PTEs) taking up the entitlements as recorded on the January 2024 schools, early years and AP censuses 

• multiplied by 15 hours × 38 weeks × local authority’s hourly funding rate 

The department will update these indicative  allocations in: 

• July 2025 based on January 2025 PTE census numbers 

• July 2026 based on five-twelfths of the January 2025 PTE census numbers (to cover the April 2025 to August 2025 period), and seven-twelfths of the January 2026 PTE census numbers (to cover the September 2025 to March 2026 period) 

This means that the final allocations for the 3 and 4-year-old universal and additional hours entitlements and the 2-year-old entitlement for families receiving additional support will be based on (five-twelfths January 2025 PTE census numbers) + (seven-twelfths January 2026 PTE census numbers). 

The indicative allocations for the entitlements for working parents of children aged 2-years-old and under will be calculated based on estimated take-up as set out in the 2025 to 2026 early years funding technical note. 

To reflect the mid-year increase from 15 to 30 hours of these working parent entitlements, the indicative allocations will be split according to the delivery phases of these entitlements over the next financial year:

a) 13 weeks (April 2025 to August 2025) as a 15 hour entitlement and b) 25 weeks (September 2025 to March 2026) as a 30 hour entitlement

The calculations below are followed separately for each delivery phase:

• the estimated number of PTEs taking up the entitlements, which have been calculated to reflect the part-year and entitlements hours relevant to each delivery phase
• multiplied by 15 hours x 38 weeks x local authority’s hourly funding rate

The indicative allocations for these working parent entitlements will be updated based on data collected in the summer 2025 and autumn 2025 terms, and the January 2026 censuses.

Further details on the termly counts for the new entitlements and the final funding allocations methodology are published in the early years data collection for the 2025 to 2026 financial year document.

7.2  Early  years pupil premium (EYPP) 

The national rate for EYPP is £1 per hour per eligible child, up to a maximum 570 hours per year, as set out in the 2025 to 2026 early years technical note.  In 2025 to 2026 all eligible children accessing the entitlements will be eligible for EYPP, provided they meet the relevant criteria. 

The EYPP indicative allocations for each local authority for 3 and-4-year-olds are calculated as follows: 

• the number of EYPP PTEs as recorded on the January 2024 schools, early years and AP censuses 

• multiplied by 15 hours × 38 weeks × £1

The department will update these indicative  allocations in: 

• July 2025 based on January 2025 PTE census numbers 

• July 2026 based on five-twelfths of the January 2025 PTE census numbers (to cover the April 2025 to August 2025 period), and seven-twelfths of the January 2026 PTE census numbers (to cover the September 2025 to March 2026 period) 

This means that the final EYPP allocations for 3 and 4-year-olds will be based on (five-twelfths January 2025 PTE census numbers) + (seven-twelfths January 2026 PTE census numbers).

The EYPP indicative allocations for each local authority for 2-year-olds are calculated as:

• the number of PTEs taking up EYPP as recorded on the May 2024 school census and in the summer 2024 local authority count
• multiplied by 15 hours x 38 weeks x £1

The EYPP indicative allocations for each local authority for under 2s are calculated as:

• 9% of the total 2-year-old EYPP PTEs used for indicative allocations
• multiplied by 15 hours x 38 weeks x £1

Further details are set out in section 11.11

These indicative allocations for 2-year-olds and under 2s EYPP will be updated based on data collected in the summer 2025 and autumn 2025 terms, and the January 2026 censuses. Further details on the termly counts for the new entitlements and funding allocations are published in the [Early years data collection for the 2025 to 2026 financial year document.](https://www.gov.uk/government/publications/early-years-funding-termly-data-collection-in-2025-to-2026

7.3  Early  years disability access fund (DAF) 

The national rate for DAF is £938 per eligible child per year, as set out in the 2025 to 2026 early years technical note.  In 2025 to 2026 all eligible children accessing the entitlements will be eligible for DAF, provided they meet the relevant criteria.

Allocations have been calculated based on Disability Living Allowance (DLA) cases in payment data from February 2024. These allocations will not change and should be considered as final for 2025 to 2026. 

Estimated pupil numbers

For 3 and 4-year-olds, for each local authority, the total February 2024 DLA count of 3 and 4-year-old children is adjusted to remove the estimated number of children in reception.

For 2-year-olds, for each local authority, the total February 2024 DLA count of 2-year-old children is used with no adjustments.

For under 2s, for each local authority, the total February 2024 DLA count of 0 and 1-year-old children is used with 2 adjustments:

1. an adjustment to remove the estimated number of children under 9-months of age, as the working parent entitlement for under 2s is for children aged 9-months up to 2-years-old

2. an adjustment to remove the estimated number who are not eligible for the under 2s working parent entitlement.

Further details of these estimated pupil numbers are set out in section 11. 10. 

These estimated pupil numbers are then multiplied by £938 to arrive at the final DAF allocations for 2-year-olds and under 2s.

7.4  Early  years supplementary funding for maintained nursery schools 

The local authority rates for the maintained nursery school supplementary funding were announced in December 2024, as set out in the 2025 to 2026 step by step tables. The methodology for calculating these supplementary funding rates is set out in the 2025 to 2026 early years technical note. The allocation for each local authority qualifying for the supplementary funding is calculated as set out below:

• the number of PTEs taking up the universal 15 hours in MNS as recorded on the January 2024 schools, early years and AP censuses 

• multiplied by 15 hours × 38 weeks × local authority’s hourly supplementary funding rate

The department will update these initial allocations in: 

• July 2025 based on January 2025 PTE census numbers 

• July 2026 based on five-twelfths of the January 2025 PTE census numbers (to cover the April 2025 to August 2025 period), and seven-twelfths of the January 2026 PTE census numbers (to cover the September 2025 to March 2026 period) 

This means that the final allocations will be based on (five-twelfths January 2025 PTE census numbers) + (seven-twelfths January 2026 PTE census numbers).

8. Deductions for national copyright licences

The department has agreements with the following agencies   to purchase a single national licence managed by DfE for all state funded schools in England: 

• Christian Copyright Licensing International (CCLI) 

• Copyright Licensing Agency (CLA) 

• Education Recording Agency (ERA) 

• Filmbank Distributors Ltd for the Public Video Screening Licence (PVSL) 

• Motion Picture Licensing Company (MPLC) 

• Newspaper Licensing Authority (NLA) 

• Performing Rights Society (PRS) 

• Phonographic Performance Limited (PPL) 

• Printed Music Licence Ltd (PMLL) 

Local authorities and schools do not need to negotiate individual licences. The department pays the cost, including VAT, to the agencies and provides this as a service to local authorities at a charge. Local authorities can reclaim VAT on the licences. These arrangements cover academies as well as maintained schools. Local authorities can hold this money centrally rather than include it in school budgets.

9. Independent school transfers

Where independent schools convert to a maintained state-funded school, in or after April 2025, we will adjust the actual pupil count used in the schools block allocations to add the relevant pupil numbers, depending on when the school changes status and the portion of the year for which it is a maintained school.

For example, if a school converts to a maintained school in September 2025, we will increase the schools block by the number of pupils attending the school as recorded on the October 2025 school census multiplied by seven-twelfths multiplied by the local authority’s PUF or SUF depending on the year groups of the pupils attending the school.

10. Funding for the Isles of Scilly and City of London

We will continue to fund the Isles of Scilly and the City of London each through a single grant, since their low pupil populations and other unique characteristics make it impracticable to fund through national funding formulae. In addition, they will receive the pupil premium grant. 

11. Pupil number information

11.1 Introduction 

This note provides detail of the pupil number counts which have been used in the calculation of the financial year 2025 to 2026 DSG allocations. 

The schools block and CSSB pupil counts are derived primarily from the October 2024 school census. This underpinning dataset is collected in a similar way to the January school census (from which detailed analysis is published as official statistics each summer). 

Early years block pupil counts are derived primarily from the January 2024 school census and early years census. 

High needs block basic entitlement allocations are derived from pupil counts data from the October 2024 school census and the alternative provision census from January 2024.

11.2  Schools block and central school services block

The pupil numbers used in the DSG calculation are those recorded as present in maintained schools and academies in the schools census, from reception (R) to year 11. This also includes pupils in special educational needs (SEN) units or resourced provision as these pupils now receive their core element funding through the schools block. Any pupils recorded as year R but who are less than 4 years old are not counted, because funding for these pupils is provided under the early years block.

11.3  Pupil counts 

The pupil numbers used to determine the 2025 to 2026 schools block allocations are from the October 2024 school census, and comprise: 

• all pupils in maintained primary and secondary schools, and academies, which are going through recoupment at census date, in national curriculum year groups R to 11, aged 4 or above at 31 August 2024 

• all pupils in maintained primary and secondary schools, and academies, which are going through recoupment at census date, whose national curriculum year group is missing or ‘X’, aged 4 to 15 at 31 August 2024

The number of pupils in SEN units or resourced provision in maintained primary schools, secondary schools, and academies, is now included in the pupil numbers as they receive their core element funding through the schools block. 

All pupils in the schools block are counted as 1.0 FTE regardless of their part-time or full-time status. Every relevant pupil with a sole or dual (main) registration is counted. 

If a duplicate remains unresolved, the 1.0 FTE of that pupil is apportioned for the schools block. We do not fund duplicate unique pupil numbers (UPNs) in the school census. We identify potential duplicate UPN cases and ask local authorities to resolve them. If a duplicate remains unresolved, the 1.0 FTE of that pupil is equally divided between the local authorities involved. For example, one pupil between 2 local authorities will result in both local authorities receiving a headcount of 0.5.

For the growth and falling rolls element of the school block, pupil numbers from the October 2023 census are compared to the October 2024 figures at middle super output area (MSOA) on the same basis. Any positive growth at MSOA level, or where pupil numbers on roll have decreased by 10% or more, is used to determine the 2025 to 2026 growth and falling rolls allocations, as outlined in the methodology.

11.4  Early  years block 

The early years block covers the pupils eligible for the early years entitlements , covering: 

• funding for the universal 15 hours entitlement for all 3 and 4-year-olds 

• funding for the additional 15 hours for 3 and 4-year-old children of eligible working parents 

• funding for the 15 hours entitlement for 2-year-olds of families receiving additional support

• funding for the 15 hours entitlement for 2-year-old children of eligible working parents 

• funding for the 15 hours entitlement for 9-month-old up to 2-year-old children of eligible working parents 

• funding for the EYPP for 3 and 4-year-olds, 2-year-olds and under 2s 

• funding for the DAF for 3 and 4-year-olds, 2-year-olds and under 2s 

• supplementary funding for MNS for 3 and 4-year-olds

11.5   3 and 4-year-old universal entitlement 

The allocations for the 3 and 4-year-old universal entitlement are calculated using PTEs. 1.0 PTE is defined as a child taking up 15 hours per week over 38 weeks. Therefore, a child taking up 12 hours per week is counted as 0.8 PTE.  

PTE counts from the January 2024 schools, early years and AP censuses are used to calculate universal entitlement funding allocations as follows. 

From the January 2024 schools census:

• all PTEs in maintained nurseries, maintained schools, and all academies (except special and AP),  aged 3  at 31 December 2023 

• all PTEs in maintained nurseries, maintained schools, and all academies (except special and AP), aged 3 at 31 August 2023 but 4 by 31 December 2023 

• all PTEs in maintained nurseries, maintained schools, and all academies (except special and AP), aged 4 at 31 August 2023 

From the January 2024 early years census: 

• all 3 and 4-year-old PTEs as at 31 December 2023 

From the January 2024 AP census: 

• all pupils in independent schools without a statement of SEN or an education health and care (EHC) plan aged 3 at 31 December 2023 

• all pupils in independent schools without a statement of SEN or EHC plan aged 3 at 31 August 2022 but 4 by 31 December 2023

11.6   3 and 4-year-old additional hours funding 

Data on how many 3 and 4-year-old children are taking up their additional hours entitlement is taken from the schools and early years censuses using the eligibility code and the same PTE counts as used for the universal entitlement, and ensuring that no pupil’s hours across both the universal and additional hours exceeds 30. 

11.7  Maintained nursery school supplementary funding allocations 

The 2025 to 2026 allocations use the universal hours PTE counts from the January 2024 school census for maintained nursery schools. 

11.8  2-year-old entitlement for families receiving additional support funding allocations 

The PTEs that are used to determine the allocations for the 2-year-old entitlement for families receiving additional support funding are as follows. 

From the January 2024 school census:

• all PTE pupils in maintained nurseries, maintained schools, and all academies, aged 2 at 31 December 2023 who meet at least one of the eligibility criteria 

From the January 2024 early years census: 

• all eligible 2-year-old PTEs at 31 December 2023 

From the January 2023 AP census: 

• all eligible pupils in independent schools without a statement of SEN or EHC plan, aged 2 at 31 December 2023

11.9  Working parents of children aged 2 and under entitlements funding allocations 

The PTEs used to determine the indicative allocations for the new entitlements for children of working parents aged 2 and under are based on estimates. Further details on these estimates are set out in the 2024 to 2025 early years funding technical note. 

These PTEs will be updated based on data collected in the summer 2025 and autumn 2025 terms, and the January 2026 censuses. Further details on the termly counts for the new entitlements and the funding allocations are published in the early years data collection for the 2025 to 2026 financial year document.

11.10 Disability access fund allocations

Each local authority is funded based on an estimate of the eligible population for DAF by age group. The input data is the February 2024 DLA claimant count (cases in Payment), sourced from DWP Stat-Xplore. 

For 3 and 4-year-old children, we use the 3 and 4-year-old DLA totals adjusted for the estimated proportion in reception in each local authority.

For 2-year-old children, we use the 2-year-old DLA totals unadjusted, as DLA is one of the eligibility criteria for the 2-year-old disadvantage entitlement.

For children aged 9 months up to 2 years, we adjust the 0 and 1-year-old DLA totals to remove an estimate of the children aged under 9-months-old. We then multiply the remaining totals by the estimated national eligibility rate for the working parent entitlements (as published for additional hours in the Education provision: children under 5 years of age Statistical Release)

These totals are then multiplied by £938 to arrive at the final allocations for each age group.

We intend to review the methodology for estimating the number of 2-year-olds and under to be used for DAF allocations in future years.

11.11 Early years pupil premium funding allocations 

The funding methodology for EYPP for the 3 and 4-year-old entitlements remains the same as in 2024 to 2025. The funding allocations for 2025 to 2026 have been calculated based on January 2024 census data on EYPP take-up by eligible 3 and 4-year-olds.

For the 2-year-old EYPP indicative allocations, for each local authority, we have calculated funding allocations for 2025 to 2026 based on the number of EYPP PTEs recorded on the May 2024 school census and summer 2024 local authority count.

To estimate the number of children aged 9 months up to 2 years taking up EYPP, we have taken 9% of the 2-year-old EYPP estimate for each local authority.

This is based on internal analysis, which takes account of:

• the estimated eligibility rate for the working parent entitlements
• the expected lower eligibility rates for EYPP among the working parent entitlement cohort, and
• the fact that there are more children aged 9 months up to 2 years old than aged 2

This percentage is higher than the 6% used in 2024 to 2025. This is because the 6% estimate was adjusted to reflect the September 2025 start date for the under 2s entitlement. This adjustment is not needed for 2025 to 2026 funding.

These estimated PTEs for 2-year-olds and under will be updated to make use of actual PTEs based on data collected in the summer 2025 and autumn 2025 terms, and the January 2026 censuses. Further details on the termly counts for the new entitlements and the funding allocations are published in the early years data collection for the 2025 to 2026 financial year document.

11.12 High needs block

The pupil numbers used to determine the basic entitlement of the 2025 to 2026 high needs block allocations are as follows.

From the October 2024 school census:

• all pupils in maintained special schools, special academies, and special free schools, in national curriculum year groups N1 to 14, aged 2 to 18 at 31 August 2024
• all pupils in maintained special schools, and special academies, and special free schools, whose national curriculum year group is missing or ‘X’, aged 2 to 18 at 31 August 2024

From the January 2024 AP census:

• all pupils in independent schools with an EHC plan or SEN support (provision codes E and K), aged 2 to 18 at 31 August 2023

All pupils in the high needs block are counted as 1.0 FTE regardless of their part-time or full-time status. Every relevant pupil with a sole or dual (main) registration is counted.

We do not fund duplicate UPNs in the high needs block. We identify potential duplicate UPN cases and ask authorities to resolve them. If a duplicate remains unresolved, the 1.0 FTE of that pupil is equally divided between the local authorities involved; that is, one pupil between 2 local authorities will result in both authorities receiving a headcount of 0.5.

12. Next steps timeline

Date	Action
22 January 2025	Local authorities submit final APT for 2025 to 2026.
End February 2025	The department issues details of high needs places in AP free schools.
March/April 2025	Update DSG allocations for recoupment and high needs deductions for academies as at 1 March 2025. The department issues detailed recoupment guidance.
April 2025	Deductions made for national copyright licences from first DSG payment for 2025 to 2026.
June 2025	Update import and export adjustment for cross border high need places in high needs national funding formula using January 2024 census and R06 ILR 2024 to 2025 data.
July 2025	Update for in-year recoupment and high needs deductions. Early years block update.
November 2025	Update for in-year recoupment and high needs deductions.
March 2026	Final update for in-year recoupment and high needs deductions.
July 2026	Early years block update.

13. DSG payment dates for financial year 2025 to 2026

Instalments	Payment date
1	03 April 2025
2	06 May 2025
3	04 June 2025
4	03 July 2025
5	05 August 2025
6	03 September 2025
7	03 October 2025
8	05 November 2025
9	03 December 2025
10	05 January 2026
11	04 February 2026
12	04 March 2026
13	23 March 2026