Decision details

The decision is to approve final hourly funding rates paid in 2022/23 to providers of the funded early entitlement for two, three and four year olds under the early years funding formula. These rates must be notified to providers by 31 March 2022.  These hourly rates could not be agreed at the date of the Cabinet report because at that point insufficient data on take up of the funded early entitlement was available to determine affordability

It was AGREED that the hourly rates for 2022/23 should be for three and four year olds, £4.87 (increase of 9p)  This is just over half of the increase provided by DfE, and the remainder of the increase will be used to increase the early intervention fund for three and four year olds with special educational needs or other additional needs which require additional support.

For two year olds, £6.13/hour, also an increase of 9p.

To comply with legislation and ensure affordability within the early years block of the Dedicated Schools Grant. The proposed funding rates are consistent with the recommendations of Cabinet and of the Schools Forum on 7 October 2021 and the increase in the early intervention fund should facilitate more early support for children with additional needs and thus reduce the need for support in later years. The rate for two year olds (which is a smaller increase than that provided by the DfE) recognises that historically this area of the budget has been overspent and that we should not plan for an overspend.

Please see papers for Schools Forum 7 October 2021.  The consequences of setting higher and lower hourly rates for two year olds were also considered; a higher rate would have meant a planned overspend, which is not consistent with the DfE funding rules requiring that the LA does not transfer funding from three/four year olds to two year olds.

None.