Agenda item

To consider the Report

Amanda Gridley, Early Years Services Manager, Children Young People and Learning and Steve Ellis, Education Accountant, Financial Services, were welcomed to the table by the Chair, in order to provide an overview of the Early Years Funding Consultation papers provided prior to the meeting.

Key points raised:

• A minimum amount of 95% funding to be passed through to providers.
• A universal base rate for all types of provider, to be set by local authorities by 2019-20.
• The total value of supplements used must not be more than 10% of the total value of planned funding to be passed through to providers.
• Deprivation supplement is a mandatory supplement.
• A requirement for authorities to establish a special educational needs and disability inclusion fund.

The following principles were presented to Forum:

(i)    Minimise the amount retained centrally, maximising funding to providers.

(ii)  Using a supplement to support children with a background of deprivation, to narrow the gap between the most disadvantaged children and their peers, at a level that will improve their outcomes. 

(iii) Set a formula which allows providers to better forecast and business plan.

(iv) SEND funding for every hour the child attends a setting at a level to support improvements in their outcomes.

Impact of the proposals was queried.  It was noted that Child Minders are the most impacted when looking at lowered levels of funding, however, not all providers will see a reduction in funding.

Overall, the funding proposal would broadly see:

• Reductions in Bournemouth of 2.5%, although an increase in SEND inclusion funding.
• Increases in Christchurch of 2%
• Increases in Poole of 0.6%

Questions were raised by Forum members around the amount of retention requested.  It was confirmed that the Local Authority can retain up to 5% of funding.  The total retained for the Local Authority, including the proposed amount of 1% for transfer to the High Needs Block (HNB), totals 1.9% of the budget.  This is lower than the amount most Local Authorities retain; for example, Dorset County Council for Christchurch providers currently retains 5%.

Concerns were raised that Early Years Providers cannot continue at the level of funding proposed; the only option for continued business is to raise the fees of those parents that pay for services amounting to an increase in 4-5%.  It was considered that this may affect parents’ ability to access the service. 

It was stated that Early Years Providers had expected a transfer of 0.5% to the High Needs Block; the increase to 1% was stated to not be supported by Providers. 

The cost of providing HNB funding to Early Years Providers was requested.  It was explained that there has been an increase in funded provision for SEND children from 15 hours per week to 30 hours per week.  There has also been a growth in the number of EHCPs in Early Years.  Early Years has access to the Portage service.  The total cost of SEND provision for Early Years was stated to be £735,000, before the cost of EHCPs is applied, although a proportion of this would be claimed from Health.  The transfer to the HNB amounts to £200,000.

It was felt that a further question needed to be included in the consultation regarding the HNB transfer.

The Forum was asked to approve:

1. The proposed central retention of £100,000 representing 1.4% from the 3 and 4 year old allocation of funding and £81,000 (4%) from the 2 year old allocation.

The Forum was requested to endorse: 

1. The principles outlined in the draft consultation document.

2. The proposals set out in the consultation paper.

RESOLVED that:

(i)   Approval given for the proposal for a central retention budget of £181,000; 12 in favour, 3 abstentions and 2 against.

(ii)  Endorsement provided for the principles outlined in the draft consultation document; 16 in favour and 1 abstention.

(iii)                The consultation document was considered fit for purpose with the addition of 1 question regarding the HNB transfer; 16 in favour and 1 abstention.