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0087 2023/24
08/03/2024
Children and Young People
All wards
Early Years Funding Rates 2024/25
To approve the hourly funding rates that will be paid to early years providers for the financial year 2024/25.
To confirm the early years / childcare funding rates for the financial year 2024/25 in accordance with the Department for Education's early years funding guidance.
Local authorities are required to have funding arrangements in place to enable settings to deliver the free early years entitlement. The free early years entitlement is as follows: - 15 hours per week for eligible working parents of children from 9 months to 2 years old (a new entitlement from September 2024); - 15 hours per week for eligible working parents of 2-year-old children (a new entitlement from April 2024); - 15 hours per week for disadvantaged 2-year-olds (an existing entitlement) - 15 hours per week universal entitlement for all 3- and 4-year-olds (an existing entitlement); - and additional 15 hours per week for eligible working parents of 3- and 4-year-olds (an existing entitlement). The existing entitlements have been in place for a number of years, and providers are paid a locally-determined hourly rate for the number of hours each eligible child attends. Local authorities are required to consult with early years providers in relation to how they propose to fund the new entitlements referred to above (i.e. the 15 hours per week for eligible working parents of children aged between 9 months and 2 years which is being phased in during the financial year 2024/25). Consultations have been undertaken with local providers and the consultation proposals are summarised below. 15 hours per week for eligible working parents of children from 9 months to 2 years old: The consultation proposal was that the maximum amount of funding available would be paid through a universal base rate of £10.30 per hour, and that no additional supplements would apply. This approach would be consistent with the current local funding arrangements whereby the use of supplements is minimised. No responses were received in respect of the consultation proposal. 15 hours per week for eligible working parents of 2-year-old children: The consultation proposals considered the two cohorts of the 2-year-old offer i.e. the existing 15 hour entitlement for disadvantaged 2-year-olds and the new 15 hour entitlement for eligible working parents of 2-year-olds. Three options were put forward: 1. A universal base rate of £7.58 per hour, with no additional supplements. 2. A universal base rate of £7.48 per with a supplement of 25p per hour for disadvantaged 2-year-olds. 3. A universal base rate of £7.40 per hour with a supplement of 50p per hour for disadvantaged 2-year-olds. The majority (65%) of respondents were in favour of option 1. The consultation documents, including summarised responses, are attached to this decision. The recommended rates set out at Section 2 of this decision reflect the views expressed by early years providers in their consultation responses. The total cost of the free early years entitlement is met from the Dedicated Schools Grant.
It is proposed that the early years funding rates for the financial year 2024/25 as set out at Section 2 are approved.
There is a risk that the level of take-up of the deprived 2-year-old cohort will reduce as a result of the new entitlement for working parents of 2-year-olds.
The views of providers were sought during the consultation, and providers didn't consider that take-up would be adversely affected. The Council undertakes a sufficiency analysis to identify any areas of the borough where there may be insufficient early years places to meet demand.
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Please contact Greg Tyrer on 01744 671812
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