The move will be a relief for many nurseries, pre-schools and childminders whose occupancy in January - when funding is usually calculated for the financial year - was much lower than in previous years due to the high numbers of Covid cases and the start of the current lockdown.
Many providers were left struggling to deal with a rise in Covid cases and staff absences, with some forced to close without extra financial support.
Ofsted figures show that the number of reported incidents of Covid-19 doubled in one week in January.
The annual headcount (early years census), which is carried out every January, informs early entitlement funding levels in different areas in England, and this year took place during the week beginning 18 January.
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