Agenda item

2020/2021 Early Years Funding


Report by Aileen Chambers,

Education and Skills.                                                   9.20 a.m.                                                                      (15 mins approx.)


Recommendation:-  (1)  To note the early education funding rates for 2020/21.


(2)  Approve retention of 5% of the 3 year old and 30 hour budget to cover central spend (Early Years and Childcare Service).


(3)  To note the Inclusion Support Grant proposals.



Aileen Chambers, Education and Skills, presented a report summarising the statutory guidance in place for the allocation of Early Education Funding and Inclusion Support Grant and proposals for the 2020/21 allocation.


It was confirmed the Early Years Block funding was delivered through the national funding formula.  Every Local Authority was required to allocate the funding to Early Education providers based on a local funding formula made up of a single base rate and a mandatory deprivation supplement (for 3/4  year olds Early Education).  Local authorities could retain 5% of the 3/4 year olds budgets allocation to fund central services.


Local authorities were required to consult providers on annual changes to their local formula as well as Schools’ Forums on changes to local Early Years funding formulas including agreeing central spend by 28th February although the final decision rested with the local authority concerned.


It was proposed to retain the current local funding formulate in 2020/21 as follows:-


Retention for Central Spend

5% of 3/4 year olds and 30 hour budgets

3/4 year olds hourly rate

£4.08 plus Deprivation Supplement if eligible (increase of 8p per hour)

3/4 year olds Deprivation Supplements

Up to 2% of 3/4 year olds and 30 hour budgets to be distributed as an additional hourly rate maintaining the 10p/15p supplement

2 year old hourly rate

£5.28 (increase of 8p per hour)

Nursery Stability Funding

Lump sum to be passported to 3 nursery schools as required by guidance


The 2020/21 increases in hourly rate for Early Education providers would be the first increase they had received for 3 years.  The increase was essentially for ongoing sustainability as the cost of delivery had increased significantly over the last 3 years with increases in minimum wage, business rates increases as well as increased running costs.


Following a review of the Inclusion Support Grant (ISG) in 2019/20 by the CYPS Directorate Leadership Team, the offer of the ISG in its current format for 2020/21 was approved.   It was anticipated that a budget of £410,000 would be required in the forthcoming financial year.  It would be funded from the Early Years Block through a contribution of carry forward from 2019/20 and in-year 2020/21 budget. 


Discussion ensued with the following issues raised/clarified:-


-          Disability Access Funding was an annual award and its carry forward could be used to supplement Dedicated Schools Grant

-          Request for projected figures to be provided for each element of the above table.  That could be provided once the Section 251 had been completed

-          The use of the Central Spend


Rotherham was part of the DfE’s Early Outcomes Project this year which was aimed at improving speech, language and communication.  It would be rolled out as from next year.


Agreed:-  (1)  That the Early Education funding rates for 2020/21 be noted.


(2)  That the retention of 5% of the 3 year old and 30 hour budget to cover Central spend (Early Years and Childcare Service) be approved.


(3)  That the Inclusion Support Grant proposals be noted.


(4)  That the Section 251 submission be submitted for information to the next meeting.

Supporting documents: