How Ofsted Evaluates the Use of the Early Years Pupil Premium (EYPP) in Inspections

department for education

The Department for Education (DfE) has recently published guidance for local authorities on the allocation and use of the Early Years Pupil Premium (EYPP), while the Education Endowment Foundation (EEF) has provided evidence-based recommendations for early years providers.

Ofsted’s inspections focus on understanding the experiences of children in early years settings, with particular attention given to disadvantaged children and those with special educational needs and/or disabilities (SEND)—including those eligible for EYPP.

How Ofsted Assesses EYPP During Inspections

During the initial notification call, inspectors will ask whether any children at the setting receive additional funding, such as:

  • Two-year-old funding for disadvantage
  • Disability Access Funding (DAF)
  • Early Years Pupil Premium (EYPP)

Inspectors often track the progress and experiences of these children throughout the visit. This approach aligns with Ofsted’s principle that:

“If provision is effective for the most disadvantaged and vulnerable, it is likely to be effective for all children.”

When settings use EYPP funding successfully, all children benefit from improved educational outcomes.

Key Areas of Focus During Inspections

Inspectors engage in discussions with leaders, practitioners, and parents, exploring:

  • How parents are supported to access EYPP and understand its benefits
  • The decision-making process behind how funding is allocated
  • The measurable impact of EYPP on eligible children’s development
  • How leaders monitor and evaluate the effectiveness of spending
  • Partnerships with parents to encourage attendance and extend learning at home

A significant portion of the inspection involves observing interactions between staff and children, particularly those from disadvantaged backgrounds. This helps inspectors assess whether the provision meets their needs effectively.

How High-Quality Settings Utilise EYPP

Effective early years providers use EYPP funding strategically and purposefully, ensuring it leads to tangible improvements. Examples include:

  • Targeted interventions to support language, communication, or social development
  • Professional development to enhance staff knowledge and teaching quality
  • Resources and experiences that help close attainment gaps

The strongest settings embed these approaches into daily practice, ensuring that disadvantaged children receive the additional support they need to progress alongside their peers.

Settings with No EYPP-Eligible Children

If a setting has no children receiving EYPP, inspectors may explore:

  • How well leaders understand the local community and potential barriers to access
  • Whether staff can identify children who may be eligible but not yet registered
  • If parents are aware of available funding and how it could support their child
  • The setting’s outreach efforts to ensure families in need are accessing entitlements

Further Guidance for Providers

Ofsted encourages all early years providers to:

  • Review the EEF’s guidance on effective early years strategies
  • Consult Ofsted’s Best Start in Life research, which highlights key factors in high-quality early education
  • Research shows that high-quality early education significantly improves outcomes for disadvantaged children. Many require additional support to develop essential skills such as language, communication, and learning behaviours. EYPP plays a vital role in addressing these gaps, and its effective use is crucial in promoting equity.

By prioritising the needs of disadvantaged children, early years providers can ensure that every child has the opportunity to thrive.

Kathy
Leatherbarrow
Early Years Consultant
Kathy Leatherbarrow is an experienced early years consultant with over 25 years in the field. She excels in improving childcare quality, mentoring staff, and exceeding Ofsted standards. Kathy is committed to providing every child with the best start in life.