The government has announced unprecedented support for businesses, including the early years sector, to protect against the impact of the coronavirus (COVID-19) pandemic.
On 21 April the Department for Education announced that local authorities could use their Dedicated Schools Grant (DSG) for the free early education entitlement funding differently and redistribute it in exceptional cases. This is only as a last resort and should be in a focussed and targeted way in order to secure childcare for children of critical workers and for vulnerable children, where their usual arrangements are no longer possible. Guidance on using DSG funding during coronavirus (COVID-19) be found at:
If a provider sees their early years DSG income reduced by their local authority in order to fund childcare places elsewhere, they may be able to increase the proportion of their salary bill eligible for Coronavirus Job Retention Scheme in the next furlough period.
Guidance for the early years sector on the interaction between early years entitlements funding and the Coronavirus Job Retention Scheme at: https://www.gov.uk/government/publications/coronavirus-covid-19-financial-support-for-education-early-years-and-childrens-social-care/coronavirus-covid-19-financial-support-for-education-early-years-and-childrens-social-care#sector-specific-guidance.
Further guidance on the support available for early years providers is available at: https://www.gov.uk/government/publications/coronavirus-covid-19-early-years-and-childcare-closures.