Agenda item

Aileen Chambers to report.

Recommendation:- To receive the report and note the contents.

Further to Minute No. 46 of the previous meeting held on 19^th January, 2024, consideration was given to a further report presented by Aileen Chambers, Head of Early Years that provided an update on the Early Years retention block proposals which centred around moving from retaining an initial 5% and reducing to 3% in future years.  The update also included an analysis on nursery provision in the local area and a representation to the DfE to implement a simplified system for the distribution of the Inclusion Support Grant (ISG)

It was noted that the Local Authority had previously retained 5% of the Early Years block to contribute to the cost delivery of the Early Years and Childcare Service.  The proposal to retain 5% from 3/4 year old funding and 3% from 2 year old and 9 month funding in 2024/25 was required to increase capacity within the team to meet the expected increase in workload detailed in paragraph 1.9 of the report.  

The Forum was advised that it was intended to decrease the percentage retention as the Early Years budget increased in order to maintain the required budget.  This would see the percentage retained reduce to 3% when all new entitlements were in place across each funding stream, which was expected to be achieved by 2026/27.

The Head of Early Years reported to the Forum that provision within the sector was relatively stable despite the challenging environment the early years sector faced. The numbers of childminders had decreased due to a reduction in demand in which also mirrored the national position. 

Early Years settings had also seen a slight reduction although two new providers had recently opened.  It was noted that one of the key challenges that affected the number of places available was recruitment of early years professionals.  The potential capacity position once the expanded entitlements are available identified a number of areas of capacity pressure particularly for under 2’s entitlement where additional places would be required to meet the projected demand. 

Consultation on the Inclusion Support Grant was carried out with schools and providers in 2023 to inform implementation of the 3-tier model.  The DfE included the SENIF within a consultation exercise undertaken between July and September 2023 on the extension of the early education entitlements and the results of the consultation were set out at Appendix 1 of the report. It was reported that most Local Authorities who responded to the consultation wanted a more prescriptive model and that the DfE had committed to reviewing arrangements going forward.

Discussion ensued and various comments shared on the information presented which included the feasibility of implementing 3% across the board sooner, concerns around the complexities of procuring the ISG funding and the need for the provision of information relating to the numbers of places available across the sector as opposed to the numbers of providers.

The Interim Assistant Director for Education and Inclusion acknowledged that whilst certain elements of the funding changes were not necessarily ideal the service was deemed a good service and had been recognised by the DfE as a potential national exemplar.

Agreed: That the report be received, and the contents noted.