Decision No: CAB086 - 10/2008

Forward Plan No: CS02992

This record relates to B1a on the agenda for the Decision-Making

RECORD OF EXECUTIVE DECISION

27/10/2008  

DECISION-MAKER:

CABINET MEMBER FOR CHILDREN'S SERVICES  

PORTFOLIO AREA:

Children's Services  

SUBJECT:

Changes to Arrangements for Calculating Early Years Funding for Three and Four Year Old  

AUTHOR:

Tim Davis  

THE DECISION

To approve the proposals / recommendations contained in the report without modification as set out below.
(i) To approve the implementation of a new early years funding formula that funds settings at a different rate according to the flexibility of the early years care on offer. There would be higher funding for settings that offer greater levels of flexibility in how children can access their entitlement over longer sessions and fewer days. Each setting would be banded in one of three funding bands according to the flexibility of their early years offering.
(ii) To approve the introduction of a funding rate supplement for each setting that takes account of its “best fit” with one of five bandings of staff qualification levels. A parallel arrangement would be put in place for Childminder settings according to their qualifications.
(iii) To approve the introduction of a funding rate supplement for each setting that takes account of “average” deprivation levels within the setting, according to the Income Deprivation Affecting Children index (IDACI) rating. A comparable arrangement would be put in place for Childminder settings.
(iv) To approve the introduction of an indicative budget to each setting as to a minimum guaranteed funding level for the coming financial year. This would be lower than the likely actual funding level, based upon an assessment of their likely take-up, but with enough flexibility to ensure that providers would receive funding for all of the children they serve.
(v) To delegate authority to the Executive Director for Children’s Services and Learning to do anything necessary to give effect to the recommendations set out above, including determining the final form of any required funding formula or funding rate supplement arising out of this report, and its annual review.
(vi) That proposals (i) to (iv) be introduced for private, voluntary and independent sector settings from 1 April 2009, and for maintained settings from 1 April 2010.
 

REASONS FOR THE DECISION

1. In June 2007 the Government announced that local authorities will be required to use a single local formula for funding early year’s provision in the maintained and PVI sectors from 2010/11. This is being introduced to support the extension of the free entitlement for three and four year olds and to address inconsistencies in how the offer is currently funded across the maintained and PVI sectors. The aim is to ensure that decisions on funding are transparent, locally consistent and based on the same factors.
2. The implementation of the recommendations (i) to (iv) will collectively underpin the long term stability of early years funding. The recommendations recognise both the rising costs and other expectations faced by providers in private, voluntary and independent sector early year’s providers from system wide investment in staff qualifications. It will help to raise end of Foundation stage achievement for all children, and also help to narrow the gap between the average and those who do least well at the end of the Foundation Stage.
3. Recommendation (v) recognises that to ensure this change continues to secure enough early years places of high quality to give local children the best start in life there will be a need to adapt and review the funding model once it is in operation.
4. Implementation of recommendations (i) to (iv) in the maintained sector earlier than 1 April 2010 would provide a significant risk of undermining the financial sustainability of the maintained sector, and the authority’s ability to provide early years where the PVI marketplace cannot do this to an acceptable standard, or to provide the number of places needed in an area. Recommendation (vi) will enable us to identify a fair and transparent approach that will avoid this.
 

DETAILS OF ANY ALTERNATIVE OPTIONS

1.A funding formula of ‘no change’ was rejected as it would not respond to changes in statutory requirements being introduced by the Department for Children, Schools and Families.

2. Approaches to funding arrangements that did not differentiate between the costs of quality differences of different early years providers were rejected on the basis that they would not lead to value for money in relation to outcomes for children at the end of the foundation stage.
 

OTHER RELEVANT MATTERS CONCERNING THE DECISION

CONFLICTS OF INTEREST

The decision-maker(s) did not declare a personal or prejudicial interest in the matters set out in the report  

CONFIRMED AS A TRUE RECORD:

We certify that the decision this document records was made in accordance with the Local Authorities (Executive Arrangements) (Access to Information) (England) Regulations 2000 and is a true and accurate record of that decision.

Date:

Decision Maker:

27/10/2008

Cabinet Member for Children's Services

Proper Officer:

Judy Cordell

SCRUTINY

Note: This decision will come in to force at the expiry of 5 working days from the date of publication subject to any review under the Council's Scrutiny 'Call-In' provisions.

Call-In Period

28 October 2008 to 04 November 2008

Date of Call-in (if applicable) (this suspends implementation)

Call-in Procedure completed (if applicable)

Call-in heard by (if applicable)

Results of Call-in (if applicable)