Local Authorities have now secured an increase in funding from the Department for Education
From September 2016 the new proposed 30 hour funding is being piloted in specific areas of the country; however Early Years settings had previously threatened to boycott the scheme due to funding being too low and unsustainable. Many pilot settings have agreed that the funding offered would be detrimental to their setting and would not cover the costs. For full roll-out in September 2017, the Department for Education claimed it would be giving local authorities the same rate for the 30 hour offer as the 15 hour offer.
The crisis was resolved following talks between the council and DfE officials. This has led to some providers receiving an increase on funding; however three of the eight early implementer areas are yet to confirm funding rates.
The Local Authorities have discretion on how the funding for all eligible three and four year olds is offered. LA’s in the early implementer areas will be expected to offer a single rate for children; yet other areas had announced split funding rates, which sector organisations and providers said would be unmanageable.
Childcare providers in York will now be paid a rate of £4 for all eligible three and four year olds; with providers in Swindon receiving £4.41 an hour.
Hertfordshire will continue with their plan of splitting the funding and will receive £4.62 for the first 15 hours and £4.88 for the second.
Northumberland has also confirmed an increase to the funding, rising from £4.01 to £4.33 for each child. A great deal of parents in Northumberland use two providers. In this case a ‘blended hourly base rate’ of £3.74 will be split between both providers, with the option of deprivation funding if applicable.
Newham is the highest base rate of the eight authorities at £5.17 an hour; this will remain unchanged. It will offer 415 places to children with special educational needs and disabilities.
Portsmouth and Wigan are in the process of finalising the funding, with their rates expected to be released soon.