Councils told their share of £47 million early years SEND fund

The Department for Education (DfE) has published councils' allocations from the £47 million inclusive early years fund (IEYF) for 2026 to 2027.

The fund is extra money to help early years settings in England become more inclusive of children with special educational needs and disabilities (SEND).

The DfE said payments to councils will be made at the end of July 2026. Councils then pass the money on to providers.

How the money reaches settings

Only providers that deliver the government's free early years entitlements can receive the funding. Providers do not need to apply for it.

Under the conditions of grant, councils must pay the funding:

• upfront
• without panel or application processes
• without tying it to individual children
• in a clear and transparent way, so providers understand how their allocation was worked out

The DfE recommends a minimum funding threshold of around £1,000 per setting, so that allocations are big enough to make a difference. Where councils use a threshold, childminders and smaller providers may not receive an allocation.

Councils are expected to confirm allocations before the end of August 2026. They must pay providers before the end of September 2026, and should do so as a single lump sum.

What the money can be spent on

The DfE said the fund should support activities such as strategic planning, workforce development, and adaptations or resources that create an inclusive environment.

Its best practice guidance gives examples including whole-team inclusion training, coaching for special educational needs coordinators (SENCOs), staff release time for training and visual timetables.

The fund is in addition to special educational needs inclusion funding (SENIF) and the disability access fund, and does not replace them.

Providers are expected to use the money only for inclusive practice, keep evidence of what they spend, and spend it all by 31 March 2027.

The IEYF is part of the inclusive mainstream fund, worth over £500 million a year, which the government announced in February 2026.