Agenda item

The Forum considered a report that summarised the proposed changes to the funding rates and other aspects of early year’s education funding in Havering following a consultation with the Early Years Provider Reference Group. 

The report informed that a Department for Education (DFE) consultation on the proposed changes was presented to the Forum at its meeting on 22 September 2016 and the Government response to the consultation was received from the DFE in December 2016.

The intention of the changes was to create a strong and sustainable early years funding system that was fair and transparent.  It was stated that the National funding formula would allocate funding for 3 and 4 years old entitlement both for the existing 15 hour entitlement and the new 30 hour entitlement for working parents to be introduced from September 2017.

The report indicated that following the consultation, the revised funding arrangements for 2017-18 would be as follows:

·         a new early years national funding formula from April 2017 that would increase Government funding rates in 80% of local authorities;

·         a minimum funding rate of at least £4.30 per hour for every local authority;

·         a requirement for Local Authorities to pass 95% of their funding to providers;

·         additional funding, worth £55m per year, to support maintained nursery schools until the end of the Parliament (2019-20);

·         a new Disability Access Fund worth £615 per child per year to support disabled three and four-year-olds to access their early years entitlement; and

·         a requirement for all Local Authorities to have Inclusion Funds to channel additional support to children with Special Educational Needs.

Following a brief discussion the Forum:

1.    Agreed the recommendations of the Early Years Provider Reference Group in implementing the requirements of the early years national funding formula as follows:

(i)            from the total early years funding received, retain £730,000 for central functions relating to early years from 2017-18 to produce a pass-through rate to providers of 95%

(ii)          to retain a contingency of £403,000 from the 95% pass-through rate to meet the costs of funding provision that is unfunded from January census data

(iii)         to include a supplement for deprivation within the single funding formula at an hourly rate that is consistent with the rates used for primary schools

(iv)         that no other supplements are included in the single funding formula (NB – see para 2 below)

(v)          that £50,000 is allocated to a social inclusion fund from early years funding to match the £50,000 held in the high needs block

(vi)         that the rate for disadvantaged 2 year olds be £5.28 and a contingency held of £103,000  to meet the costs of funding provision that is unfunded from January census

2.    Agreed that further work be carried out by the LA on supplements for Quality and EAL for consideration of inclusion in the single funding formula for 2018-19.

3.    Agreed a base rate of £4.39 per hour.

4. Agreed that the funding of the deprivation supplement should match the revised deprivation rates used in the schools formula for primary schools as agreed by the Schools Funding Formula