Issue - items at meetings - Early Years Single Funding Formula from April 2010

Report of the Director of Children’s Services (copy attached).

That, subject to approval by the Early Years Funding Group and the Schools Forum, the Cabinet Member agreed that Brighton and Hove becomes a pathfinder and implements a Single Early Years Funding Formula based on the following factors:

(i)     Three basic hourly rates:  private, voluntary and local authority (PVI) group childcare providers; childminders; maintained and independent school nursery classes and schools (includes a quality supplement).

(ii)             A deprivation supplement for children who live in worst 20% Super Output Areas amounting to 5% of the total budget.

(iii)            Quality supplements based on four levels of quality based on achievement of quality assurance programmes and staff qualifications.  The formula allows PVI providers to be paid at the same rate as maintained nursery classes if they employ an Early Years Professional.

(iv)           Not to include a supplement for flexibility (to be reviewed for 2011/12).

(v)             Additional funding for children with significant special needs in maintained schools – this is already in place for PVI providers.

(vi)           Additional sustainability funding for maintained nursery schools and small group providers with less than 24 places.

(vii)          To base funding on termly counts of participation and adjust funding for children who leave or join after the head count day.

(viii)         Transitional protection – to reduce any losses for PVI providers and nursery schools by 50% after inflation.  Maintained schools with nursery classes will be protected by the Minimum Funding Guarantee.

39.1    The Cabinet Member considered a report of the Director of Children’s Services concerning the Early Years Single Funding Formula from April 2010. The report sought the Cabinet Member’s agreement for Brighton & Hove to apply to become a pathfinder to pilot the Single Formula from April 2010 ahead of the national implementation in April 2011 (for copy see minute book).

39.2    The Cabinet Member agreed that Brighton & Hove should continue with the initial timescale for implementation from April 2010, given the amount of work and consultation already done to prepare for implementation.

39.3    The Opposition Spokesperson, Labour Group, commended the team of officers involved with this work and praised the team for their professionalism and the quality of care the city offered. She indicated that she was also pleased with the special education needs provision referred to in the report. 

39.4    The Opposition Spokesperson, Green Group, sought clarification about the different rates of funding.

39.5    The Head of Service, City Early Years and Childcare, noted that the base rate was set out per hour and was based per child’s place and not per member of staff. She explained that there was also a supplement for deprivation which many nursery classes in schools would benefit from.

39.6    The Head of Service also explained that nursery schools would have a small decrease in funding but that their cost per pupil was still significantly more than other providers. She noted, however, that whilst nurseries provide good quality of provision with highly qualified staff, this was also the case for maintained school nurseries and Children’s Centres. The Single Formula was designed to ensure a more equitable distribution of funding across all providers.

39.7    RESOLVED – That, having considered the information and the reasons set out in the report, the Cabinet Member accepted the following recommendation:

(1)        That, subject to approval by the Early Years Funding Group and the Schools Forum, it be agreed that Brighton and Hove becomes a pathfinder and implements a Single Early Years Funding Formula based on the following factors:

(i)          Three basic hourly rates:  private, voluntary and local authority (PVI) group childcare providers; childminders; maintained and independent school nursery classes and schools (includes a quality supplement).

(ii)               A deprivation supplement for children who live in worst 20% Super Output Areas amounting to 5% of the total budget.

(iii)             Quality supplements based on four levels of quality based on achievement of quality assurance programmes and staff qualifications.  The formula allows PVI providers to be paid at the same rate as maintained nursery classes if they employ an Early Years Professional.

(iv)              Not to include a supplement for flexibility (to be reviewed for 2011/12).

(v)                Additional funding for children with significant special needs in maintained schools – this is already in place for PVI providers.

(vi)              Additional sustainability funding for maintained nursery schools and small group providers with less than 24 places.

(vii)            To base funding on termly counts of participation and adjust funding for children who leave or join after the head count day.

(viii)          Transitional protection – to reduce any losses for PVI providers and nursery schools by 50% after inflation.  Maintained schools with nursery classes will be protected by the Minimum Funding Guarantee.