Funding for early years settings

Money available to support the learning and development of young children with special educational needs and/or disabilities

Overview

Early years settings in Somerset get funding to support young children with SEND. This funding helps settings put the right support in place so children with additional needs can play, learn and take part alongside their peers.

Most support is funded directly through the setting’s usual early years budget. Some children need extra funding from the council when their needs are higher or more complex.

Core early years funding

Early years settings get funding for each hour a child attends. This helps them support all children, including those with SEND.

Most children receive free early years entitlement hours. These are paid by the council on behalf of parents. The number of free hours a child can get depends on their age and, whether their parents are working.

If families use more hours than their free entitlement, they may pay fees directly to the setting.

Providers are allowed to charge extra if they need to employ extra staff or limit their provision to fewer children but are only allowed to charge for the extra costs incurred. All childcare providers must make ‘reasonable adjustments’ to include children with special educational needs and/or disabilities.

Somerset Council allocates the Disability Access Fund (DAF) to help children with a disability access their early years entitlement. The Disability Access Fund can be used for training, resources and other forms of support but should not be used to pay for hours attended.

SEN Inclusion Funding

All early years settings receive some SEN Inclusion Funding (SENIF) as part of their core funding.

This is not a separate pot of money. It is funding settings are expected to use to support young children with lower‑level or emerging SEND needs.

Early years high needs funding

To help the early year’s setting put their graduated response in place, they can apply for High Needs Funding through the Early Years Audit process. This is extra funding from Somerset Council and is part of the high needs budget. High needs funding is added to the setting’s usual budget and is based on the child’s needs.

Most children with SEND can usually start at a setting through careful planning between the SENCO and parents before high needs funding is needed.

A band is used to show how much support is needed. The band looks at how often support is needed and how specialised it must be. Each band has a set funding level which is paid to the early years setting.

Before applying for an Education, Health and Care (EHC) needs assessment, the early years setting is expected to apply for High Needs Funding first and use it to support the child as part of their graduated response. If the child later receives an EHC plan, the funding will be reviewed through that separate process.

Any high‑needs funding is given for a named child and must be spent on the SEN provision described in their plan. It transfers with the child if they move to another early years setting, and continues into their Reception year at school.

Last updated: October 1, 2026

Next review due: April 1, 2027

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