Do you have a nursery class or early years’ provision run under governors’ powers? If you do, your funding is about to change.

The Government is introducing a National Early Years Funding Formula from April 2017, which will mean a standard base rate paid to every different type of provider. At the moment, Warwickshire pays an enhanced rate to nursery classes and an even higher rate to nursery schools and specialist nursery classes.

Warwickshire is one of the 20% of local authorities to lose funding under these new arrangements.

You can find details of the Government proposals, alongside the operational guidance for the new Early Years’ National Funding Formula, by following the links below

https://www.gov.uk/government/consultations/early-years-funding-changes-to-funding-for-3-and-4-year-olds

https://www.gov.uk/government/publications/early-years-national-funding-formula-allocations-and-guidance

Warwickshire is consulting on its local proposals until 3 February at
https://askwarks.wordpress.com/2017/01/13/early-years-funding-formula-consultation/

The confirmed hourly rates for the next financial year will be dependent on the outcome of this consultation, and the final budget available, as agreed by Schools Forum.

In August 2016, the Department for Education (DfE) consulted on proposals to change the way it funds free childcare and early years education. The DfE’s response to the Early Years National Funding Formula consultation was published on 1 December 2016 alongside operational guidance for the new early years national funding formula for 2, 3 and 4 year olds.

 

From April 2017, there will be a change to the way the amount of funding for early years is calculated by Government. Less will be coming into the Warwickshire area and there will be further restrictions on how Local Authorities can then distribute this funding to providers. The chief change is that a universal base rate will apply to all types of provider. This means that schools with nursery classes will receive the same rate of funding as the private, voluntary and independent sectors. There will be supplementary funding for the duration of this Parliament, but only for maintained nursery schools (not nursery classes in primary schools). 

 

There will also be the introduction of a Disability Access Fund and a requirement for authorities to establish a special educational needs inclusion fund, although the latter is already well established in Warwickshire. 

 

Implementation is incredibly tight, so the Local Authority is undertaking a swift consultation on how to implement this, including the proposed universal rate and whether there should be any additional funding factors or supplements for deprivation, quality etc. Please look out for the consultation.

 

John Betts 

Head of Finance

Resources Group