Early years funding reform
In June 2007 the Government announced that local authorities (LAs) will be required to use a single local formula for funding early years provision in the maintained and PVI sectors from 2010-11. LAs are also encouraged to introduce this formula from April 2009 wherever possible.
The single local formula is intended to support the extension of the free
entitlement for 3-and 4-year-olds, and to address inconsistencies in how the
offer is currently funded across the maintained and PVI sectors. This will help
to ensure that decisions about funding for maintained and PVI providers are
transparent, and based on the same factors. While funding levels and funding
methodologies do not have to be exactly the same for all providers, any
differences must be justifiable and demonstrable.
Interim guidance, developed from the experiences and learning of the six
pilot authorities working the DCSF since November 2007, is now available
below to help all local authorities begin to develop their own single formula.
The six pilot authorities are: Hertfordshire, Somerset, Leeds, Rochdale,
Croydon and Southampton. This project is described in more
detail below.
Guidance
Implementation of a Single Funding Formula for Early Years:
Interim Guidance
Further information and guidance is available in the explanatory
note for LAs on the reform of early years funding available on
Teachernet
Implementing a single funding formula for early years: the Formula Development Project
Hedra consultancy is working with six LAs as part of the Formula Development Project. These LAs are accelerating progress to implement a single formula in April 2009 to provide good practice guidance for other LAs.
The strongest message coming out of the pilot LAs is that developing a
single formula is challenging and takes time Their evidence shows how important
it is to engage all stakeholders (maintained and PVI) in the process, and to do
so early. This is most successful where work on the formula is jointly driven
by early years and school finance. Pilots report that engaging stakeholders as
early as possible has particularly helped with the design of the cost survey
and the response rate. Given that DCSF is expecting real change in 2010, it is
critical that every LA starts work towards the formula now.
The following resources are currently available to support LAs in their
progress towards a single formula.
Formula Development Project documents
Formula
Development Project - Update 1
Formula
Development Project - Update 2
The first two of a series of updates being issued about progress towards a
single formula in our six pilot LAs
Characteristics
of the Formula Development Project LAs
A table showing the characteristics of the six pilot LAs
Guide
to Analysing Costs in the PVI Sector
A short practice guide for local authorities on completing an analysis of
the cost of delivering the free entitlement to early education in the private,
voluntary and independent sector. The guide is accompanied by a letter to
directors of children's services and includes a series of case
studies
Free
entitlement survey results
The results and responses of a survey carried out on local funding
arrangements for the free entitlement and on schools forums membership in 2007;
providing an invaluable evidence base for the reforms announced in June.
Report
on the impact and cost implications of extending the free entitlement to
nursery education for 3- and 4-year-olds
This is the full report, published in September 2007, from HEDRA, the
consultancy commissioned by DCSF to conduct independent research into the cost
implications of extending the free entitlement for 3- and 4-year-olds. Using a
case study approach in six LAs, the objective was to establish a baseline for
the current cost of providing the entitlement
This page was last updated on 31 July 2008
