Targeting early investment so that all children can reach their potential

Investing in early years is the key to closing the disadvantage gap.

Our research identifies what works, where to focus, and how to make it happen, ensuring all children can reach their potential.

Gaps between children from disadvantaged backgrounds and their peers tend to broaden as they progress through school and beyond. This has been demonstrated in multiple studies and is evident in national attainment outcomes between pupils eligible for Free School Meals (FSM) and their peers in England.  

However, there is a great deal of variability across local areas in how far disadvantaged children fall behind their more affluent peers. Whilst some areas narrow gaps early and put disadvantaged children on a positive trajectory, other areas with smaller gaps at age 5 see these increase over time.

Funding Futures synthesises statistical modelling and qualitative fieldwork from seven local authorities to identify the combination of place conditions, investment choices and system behaviours associated with smaller gaps.  

This website contains resources and research for funders, local authorities and policy makers – enabling them to target their resources in early childhood locally for maximum impact on the life-chances of disadvantaged children.

Why?

Early childhood outcomes have a crucial influence on later life chances and disadvantage gaps compound over time without intervention.

  • The national picture is deteriorating
    The gap has been growing since 2017.

    Some Local Authorities narrow gaps against the odds
    Exploring the conditions and inputs which are present in these outperforming LAs sheds light on how targeted investment can be used most effectively to support long -term outcomes of disadvantaged children.

What?

There is no silver bullet to closing the gap, but consistent approaches and interventions are present in areas with smaller disadvantage gaps in the early years.

  • Support multi-faceted approaches
    Our analysis underlines that there is no ‘recipe’ for narrowing gaps - local area needs are individual and dynamic.

    Invest in integrated support
    ‘One-stop shops’ such as Children’s Centres and Family Hubs, accompanied by ‘no wrong door’ approaches were frequently cited in the research as narrowing gaps.

    Improve access to quality early education & childcare
    We found that a higher proportion of 3- and 4-year-olds accessing their 15-hour entitlements in an Ofsted rated ‘Outstanding’ setting significantly predicts a smaller Early Years disadvantage gap.

    Additional areas to focus investment
    Engaging and supporting parents, speech and language, and early identification and support for additional needs were all cited as other powerful areas of intervention.

Where?

In deciding where to target resource to narrow local early years disadvantage gaps, funders should consider specific local area data points and the pre-existing conditions for gap narrowing.

  • Outcomes of disadvantaged children
    Understand the attainment gaps, not just performance on “GLD”.

    Local early years funding context
    Sustained Children’s Centres and Family Hubs spend.  

    Levels of disadvantage
    Higher disadvantage can enable universal gap-narrowing approaches and attract focus.  

    Diversity of local population
    Higher EAL and diversity correlate with smaller gaps.  

    Geographical scale and population density 
    Smaller, denser areas find it easier to coordinate and build relationships.  

    Early years infrastructure
    More children in Outstanding nursery settings is associated with smaller gaps.

How?

Alongside consistent approaches and interventions, system enablers are present that nurture and sustain progress.

  • Commitment of local senior strategic leaders to early years
    In fieldwork areas with narrow gaps, key leaders had engendered a sense of collective mission around early years outcomes which trickled down to the frontline.

    Strength and influence of local guiding early years partnerships
    In areas with narrow gaps, we observed active, multi-agency guiding partnership groups focused on early years.

    Presence of a data-informed “test and learn” culture
    Local authorities with narrow gaps were very data-focused, using information to drive ongoing improvements.

    Presence of strong and trusting relationships at the frontline
    Strong relational working across the children’s workforce enhances collaboration, and the ability to know and support children and their families well was in clear evidence in areas with narrow gaps.

    Whether the local voluntary and community sector is well engaged
    Outperforming areas saw the outsourcing of key services for young children and their families to local community organisations as a vital part of their success.

Download the 2025 reports

Funding Futures
summary report

Download

Fieldwork pen
portraits

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Statistical
analysis

Download

Funding Futures Data Dashboard

Understand the relative performance on early childhood outcomes by Local Authority and benchmark against statistical neighbours.

Developed by Mime

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Local Context Tool

Compare local areas on key gap-narrowing metrics.

Developed by Isos Partnership

Discover

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