Give your views on how EY funding formula is distributed
Following many years of campaigning from NDNA, the Government is now consulting on how it distributes money for funded early education places. This was set out in the Government’s ‘Giving every child the best start in life’ strategy.
The Early years funding: proposed changes to the entitlements funding systemconsultation went live this morning, with a deadline of 14 September for providers to give their responses to sector-specific questions.
Tim McLachlan, Chief Executive of NDNA said: “We have campaigned for years to update the overcomplicated way councils are funded through a top-slice of children’s funding and to strengthen the ring-fencing of early years funding. Our research has shown that in recent years, nearly half a billion pounds of early years funding has not reached the frontline, going instead into reserves or off-setting overspends in other education budgets.
“We welcome other vital updates too, including the move away from using workforce pay data that is over twelve years out of date. We all want to see greater constituency for children to remove any postcode lottery in early education and care funding. Given we know that children from disadvantaged backgrounds have the most to gain from accessing high-quality early education and care we also welcome efforts to increase the impact of funding in this area.
“However, providers juggling the financial pressures they face on a day to day basis will be disappointed that more widespread reform is not included in this package. Any reform must look at the size of the early years budget needed to truly cover the costs of delivery. This is a missed opportunity to do this, and to look at simplifying how funding is delivered so it can truly follow children to the childcare provider that families choose.”
Since 2018, NDNA has exposed huge flaws in the funding system which enable some local authorities to keep back money meant for children’s places. In total NDNA has uncovered almost £500 million which has not reached providers. https://ndna.org.uk/councils-hold-back-record-115m-in-early-years-funding/
In its consultation, the Government proposes removing the pass-through rate (currently at 97%) so councils will no longer be able to top slice their allocation. Instead the Government would pay them a certain amount to administer the scheme.
There are four questions for providers but each answer is limited to 5,000 characters. There are also questions for parents and other stakeholders.
The DfE would like your views on these proposals to:
- change how they allocate SEND funding for early years settings
- updating the data used in the early years national funding formula (EYNFF)
- change local funding rules for local authorities
According to the DfE these proposals will help to improve:
- access to childcare for families on low incomes
- support for children with SEND in early years settings
- how they allocate funding
The majority of changes are due to come into force in the 2028 to 2029 financial year, with some transitional arrangements in the 2027 to 2028 financial year.
Deadline for giving your views is 14 September.
Fill in the consultation here https://consult.education.gov.uk/early-years-funding/early-years-funding-proposed-changes-to-the-entitl/
- early years funding
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