Agenda item

Aileen Chambers to report.

Recommendation:-  (1) Approval is given to retain 5% of 3 / 4 year old & 30 hour funding and 3% of 2 year old (working and disadvantaged) and 9 month funding to cover central Early Years and Childcare Service running costs.

(2) Approval is given to consult on the Early Education funding options presented.

(3) Approval is given to continue to distribute ISG based on the current model.

(4) Approval is given to distribute the TPAG in a lump sum to all providers

(5) Approval is given to fund the above entitlement for the EY Block with any shortfall being funded through the High Needs Block.

Consideration was given to the report presented by Julien Kramer, Interim Assistant Director: Education and Inclusion which provided information on the statutory guidance in place for the allocation of early education funding and proposals for the local funding formula 2024/25.

            The report provided substantial detail on the following areas:-

·       The changes to the National Funding Formula and expanded entitlements

·       The Early Years Block and increase in Department for Education (DfE) funding rates from 2023/24

·       Local Authorities central retention from the Early Years Block

·       Funding for 9-month-old entitlement

·       Inclusion Support Grant

·       Proposals to distribute the Early Years Teachers Pay Additional Grant

The Department for Education (DfE) had consulted on changes to the National Funding Formula for 2024/25 with the introduction of an entitlement for 2-year-olds of working parents from April 2024 and children from 9 months from September 2024. 

Local Authorities were required to allocate the funding to early education providers based on a local funding formula which was detailed in the report. 

Forum Members were made aware of several adjustments to the allocation.  Local Authorities could  retain up to 5% across 3 / 4 year old, 2 year old and 9 month entitlements (reducing to 3% in future years), Early Years Pupil Premium would apply across all age ranges (previously 3 / 4 year olds only) and the Disability Access Fund would  apply across all age ranges (previously 3 / 4 year olds only). It was emphasised that Schools Forum could express a view on the recommended retention; in line with DfE guidance, it would be for the local authority to finally determine. 

Forum Members were advised that the projected Early Years Block funding for 2024-25 was £29 million which would be distributed to 250 schools / providers again in line with DfE guidance.  It would be allocated initially as an ‘indicative’ allocation in January 2024. 

Local Authorities were also required to consult providers on annual changes to their local formula, including the Schools’ Forum, on changes to local early years funding formulas, including agreeing central spend by 28th February, 2024 whilst noting the final decision rested with the Local Authority. 

Details were shared on the options that were being proposed for consultation with the sector, and with interested parties. These were detailed as:-

Option 1:- Retain the current local funding formula in 2024/25 as set out in detail as part of the report with the addition of a Central Retention on 2 year old and 9 month old funding streams.  

Option 2:- Central Retention of 5% of 3 / 4 year and 30 hour funding and 3% from 2 year old and 9 month funding streams.  Retain 1% of 3 / 4 year old budgets to distribute as a deprivation supplement. 

This model would maximise the 3 / 4 year old base rate to all providers and provide the mandatory additional deprivation supplement to all providers who would have qualified under Option 1 but at a single rate.  There were 9% of providers who received 2p / hour less increase than Option 1 however 91% of providers would benefit from an increased base rate.

Option 3:-

Either Option 1 or 2 for 3 / 4 year olds and no deprivation supplements to be introduced for 2 year olds or 9 month – 2 year olds single rates for all providers as detailed in the report. 

It was noted that the Early Years and Childcare Team had held detailed informal discussions with providers regarding the proposals. The consultative process would commence as soon as possible subsequent to Schools Forums briefing.   

Discussion focussed on the detail available on rates retention and its purpose.  A Forum Member felt that the increase in deprivation supplement may not be enough to deliver the necessary impact required. 

There was wide ranging discussion on the scale of the task, the cost of delivery and  the anticipated impacts from the extra funding.

Forum Members were interested in the proposal to retain an initial 5% which would be reducing to 3% in future years. Julien Kramer offered to provide a supplementary briefing note to cover this issue. The note would be distributed promptly and would provide elucidation on this matter.  Several Forum Members believed that the level of funding proposed for 3 / 4 years olds was insufficient to meet the needs of Rotherham children. 

The expansion plan was welcomed. Those present also felt that due consideration should be given to the delivery and the sustaining of provision given the sector was experiencing difficulty in  recruiting and retaining staff. 

Forum Members suggested that it would be useful for an analysis to be provided on nursery closures and numbers of places lost. This would help provide further perspective to the current situation. 

A Forum member suggested that there may be be a disconnect between the detail within the report and what was in fact reality within the sector.  It was queried what provisions would need to do should all options proposed be unsuitable.  In this unlikely eventuality, the Local Authority would  take guidance from the Department for Education (DfE). 

It was confirmed that various supplementary information would be made available as part of the formal consultation process.

The Chair agreed to follow up with officers in relation to timescales for the consultation to be concluded.

Forum then voted on the five recommendations that were put forward. The outcomes of the vote were:

1.    Forum unanimously did not support the option to retain 5% of 3 / 4 year old and 30 hour funding and 3% of 2 year old (working and disadvantaged) and 9 month funding to cover central Early Years and Childcare Service running costs as there was no information shared with the Forum about what this money will be used for.

2.    That consultation on the Early Education funding options presented be supported.

Action: Julien Kramer/Aileen Chambers

3.    The complex distribution of the Inclusion Support Grant (ISG), based on the current model, was not supported.

4.    That the Teachers Pay Additional Grant be distributed in a lump sum to all providers.  

Action: Julien Kramer/Aileen Chambers

5.    That the funding of the above entitlement for the EY Block with any shortfall being funded through the High Needs Block was not supported, pending further clarification.  

Following the vote, it was agreed by Schools Forum that the interim director will:

·        provide a supplementary briefing note to share information about in the proposal to move from retaining an initial 5% which would reduce to 3% in future years.

·        Provide an analysis to forum on nursery closures and numbers of places lost to support understanding of current provision in the local area.

·        Make a representation to the Department for Education (DfE) to implement a simplified system for the distribution of Inclusion Support Grant (ISG).