Inclusive Early Years Fund: A guide for Early Years Providers

Understanding the IEYF and what it means for early years providers

The Department for Education’s new Inclusive Early Years Fund (IEYF), which is part of the wider Inclusive Mainstream Fund (IMF) is designed to help early years settings strengthen inclusive practice and improve support for young children with Special Educational Needs and Disabilities (SEND).

Introduced alongside the government’s wider SEND and inclusion reforms, the IEYF aims to help create early years environments that are “inclusive by design” — where children’s needs are identified and supported earlier, barriers to participation are reduced, and inclusion becomes part of everyday practice across the setting.

For nurseries, preschools and other early years providers, the fund represents an opportunity to strengthen both universal provision and targeted support during a critical stage of child development.

  

What is the Inclusive Early Years Fund?

The Inclusive Early Years Fund is a new government funding stream for early years providers delivering funded childcare entitlements in England.

For 2026–27, the DfE has allocated £47 million to support inclusion across the early years sector.

Unlike an individual application process, funding is allocated to local authorities, who will then distribute support to eligible providers in their area.

The aim of the fund is to help settings:

• strengthen inclusive practice
• improve early identification of need
• provide earlier support without waiting for diagnosis
• reduce barriers to participation
• support children with emerging or additional needs
• build more inclusive environments and experiences for all children

Importantly, the IEYF is intended to support whole-setting approaches to inclusion, rather than funding attached to individual children.

  

Why has the IEYF been introduced?

The government has recognised that many children experience delays in receiving support because needs are often identified only after difficulties have escalated.

The IEYF is intended to help settings intervene earlier by strengthening:

• Workforce confidence and training
• Inclusive environments
• Early identification processes
• Partnerships with families
• Targeted support within universal provision

The guidance reflects a growing focus across education on prevention, early intervention and inclusion through everyday practice.

  

What can settings use the funding for?

The DfE guidance encourages investment in approaches that strengthen inclusion across the whole setting.

This may include:

• staff training and professional development
• early identification and assessment approaches
• communication and interaction support
• sensory and environmental adaptations
• targeted small-group support
• support for transitions
• family partnership work
• evaluation and monitoring of impact

The focus is on helping settings build sustainable, inclusive practice that benefits children with SEND and emerging needs as part of the wider early years environment.

  

What does effective inclusion look like in early years?

Inclusion in early years is often experienced through everyday interactions, relationships and environments.

Children are more likely to engage, communicate and explore when they feel:

• safe
• connected
• understood
• emotionally supported
• able to participate successfully

Effective inclusive practice may include:

• emotionally available adults
• predictable routines
• communication-rich environments
• responsive relationships
• support for emotional regulation
• strong partnership with families
• environments adapted to reduce barriers to participation

The IEYF guidance encourages settings to think proactively about how environments, relationships and experiences can support all children to thrive.

      

How whole-setting approaches support inclusion

The guidance strongly reflects the importance of consistent, whole-setting approaches rather than isolated interventions.

Many settings are therefore exploring approaches that help:

• build shared understanding across staff teams
• strengthen relational practice
• improve confidence in supporting SEND and SEMH needs
• identify needs earlier
• support transitions and belonging
• create calmer, more emotionally supportive environments

Whole-setting approaches can help create greater consistency for children and families while supporting staff confidence and early intervention.

 

How Thrive aligns with the IEYF

Thrive aligns closely with the principles underpinning the Inclusive Early Years Fund.

Through training, relational practice and developmental understanding, Thrive supports settings to strengthen inclusion across the whole environment — helping practitioners understand children’s social and emotional development, identify needs earlier and create emotionally safe spaces where children feel connected and able to learn.

This reflects the IEYF’s emphasis on:

• Inclusive-by-design provision
• Early intervention
• Workforce development
• Relational practice
• Partnership with families
• Reducing barriers to participation

Many settings are looking at how whole-setting approaches like Thrive can help them strengthen inclusive practice while supporting staff confidence, emotional wellbeing and early identification of need.

 

A growing focus on inclusion in Early Years

The introduction of the Inclusive Early Years Fund reflects a wider recognition that inclusion begins long before children enter school.

For many settings, the challenge is not commitment to inclusion, but ensuring that support is consistent, relational and sustainable across the whole environment.

As the early years sector continues to respond to increasing complexity of need, the IEYF provides an opportunity to strengthen early support and create environments where more children feel safe, valued and able to thrive.

 

Want to explore how Thrive could support your inclusion plans?

Book a conversation with our team to discuss your setting, priorities and next steps.

 

Book a conversation about your Inclusive Early Years Fund plans