A six-week consultation on ‘fairer’ early years funding has been launched
The DFE have launched a six-week consultation to look further into the early years national funding formula; this consultation will look at the funding for the three and four-year-olds who are receiving the 30hrs free childcare as well as making sure children with sen receive extra funding. It will also look at the way local authorities fund early years providers.
The new Education Secretary Justine Greening would like to see a more transparent funding system, making sure it is fairer for all early years providers. She would also like to see further support for families with the cost of childcare
The changes proposed with help create a fairer system for early years providers, creating a more affordable high-quality childcare for families. Childcare providers will be paid the same basic rate of funding for every hour of the free entitlement. The new early years funding will be made up of three funding factors
A flat rate of funding for each child, this will ensure every local area is funded fairly
An additional needs factor, taking into account extra costs of supporting children with additional needs
An area cost adjustment – this will be only be adjusted based on the cost of providing childcare in different areas of the country
The proposed changes are to be brought in from April 2017 for the 15hours and from September 2017 for the 30hrs free childcare
Average hourly rates will be £4.88 for three- and four-year-olds – this will include the EYYP and £5.39 for two-year-olds.
The proposed changes will mean that local authorities will use the national formula and pay early years providers the same hourly base rate, and they will have to pass on 95 per cent of the funding directly to early years providers
The deadline for responding to the consultation is 22 September.
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