The Pre-School Learning Alliance said it was concerned about difficulties in identifying children from disadvantaged families with needs such as speech and language delay and emotional and behavioural difficulties.
The Alliance said it would like children with additional needs, impairments and communication difficulties to be covered by the two-year-old funding.
It also raised concerns about the plan to allow parents to take the free entitlement between 7am and 7pm, because ten hours was too long for such young children.
The National Day Nurseries Association said it was essential that funding reached 'the frontline' and that two-year-old funding should be ringfenced within the Dedicated Schools Grant.
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