Early Years National Funding Formula (EYNFF) – 2023-24 - consultation

Purpose

This consultation asks providers for their views on the following areas:

• The funding principles for 3- and 4-year-olds under the Early Years National Funding Formula (EYNFF).
• The Special Educational Needs (SEN) Inclusion Fund and Deprivation funding proposed adjustments for 3- and 4-year-olds.
• Introduction of a quality supplement as a mechanism to continue to fund additional costs for teachers’ pay and pension in maintained schools (including academies)

Background and overview

The Early Years National Funding Formula (EYNFF) for 3- and 4-year-olds was introduced in April 2017. Each year the Government publishes guidance setting out the overall framework, funding rates and expectations on local authorities in implementing the EYNFF.

Local authorities are required to consult providers on annual changes to their local formula.

National rates for 2023-24 have increased. Proposed arrangements for funding received from the Government for the EYNFF in Oxfordshire are

3- and 4-year-olds

The EYNFF funding rate from the government to Oxfordshire in 2023-24 has increased to £5.00 per hour from £4.77 per hour in 2022-23. The increase includes a teachers’ pay and pensions element – see below for more information.

For Oxfordshire County Council a 5 per cent central retention is proposed to remain as at present; this is in line with the DfE requirement for a 95 per cent pass-through of funding. The retained element funds central services or services in-kind. This includes Early Years’ staffing teams, commissioning, and training-related expenditure.

The universal hourly rate for all providers is then calculated after deductions for elements including mandatory Deprivation Supplement, SEN Inclusion Fund allocations and contingency. If these elements were held at the same levels as in 2022-23, and the full hourly rate increase was passed to providers, the provider hourly rate paid would increase by 23p per hour from £4.35 to £4.58 per hour. However, to meet increased need the consultation proposes adjusting the universal hourly rate on both the SEN Inclusion Fund (2p per hour) and Deprivation budget (1p per hour). If both proposals were implemented, this would deliver a universal hourly rate to providers of £4.55.

Early Years Pupil Premium (EYPP) – The existing, 2022-23, national rate of 60p per hour per eligible child, up to a maximum 570 hours per year, will increase to 62p per hour in 2023-24

Mandatory deprivation supplement – This continues to be mandatory in 2023-24 and the Local Authority will maintain the rate at 47p per child per hour.

Disability Access Fund (DAF) - The national rate for DAF is increasing in 2023-24 from £800 per eligible child per year to £828. The funding is for three- and four-year olds who are not in reception classes that are claiming the Disability Living Allowance (DLA).

Supplementary funding for Maintained Nursery Schools (MNS) – This was originally introduced to protect 2016 to 2017 funding rates, prior to the introduction of the EYNFF, for universal hours only. The supplementary funding hourly rate for maintained nursery schools will increase to £3.80 per universal hour (including Teachers pay and pension uplift) from £2.49 in 2022-23, reflecting increased government funding.

SEN funding under the SEN inclusion fund – Local Authorities are required to have an SEN Inclusion fund. The funding is paid to providers supporting children with low level or emerging needs. In Oxfordshire, the current rate is £38.50 per week and paid to schools and settings indicating the number of children using using the description ‘ SEN support’ on their headcount return. Due to continuing high demand, it is proposed to increase the budget for the fund, with new procedures implemented in 2023-24 to ensure this funding is appropriately targeted.

Discretionary Supplements that are not currently used in Oxfordshire are

• Rurality or Sparsity
• Flexibility
• Quality

Teachers’ Pay and Pensions element

Schools have received Teachers Pay Grant from 2018 and Teacher’s Pension Employer Contribution Grant from 2019 to help meet increased costs arising from the Teachers’ pay awards and higher employers pension contributions. From 2023-24 the government will cease these separate grants and pass the funding on through the EYNFF. To continue to address teachers’ pay and pension funding, the DfE are encouraging the use of a discretionary supplement, suggesting the Quality Supplement. As Oxfordshire are not using this in the current formulae this seems an appropriate mechanism.

2-Year-olds – The funding rate from the government to Oxfordshire in 2023-24 will increase to £6.21 per hour from £5.89 per hour. There is no ‘pass-through requirement’ for two-year olds and the council currently does not retain any funding for central administration. There are no compulsory supplements for two-year olds.

Final allocations were announced by government in late December. The allocations, proposed provider rates and the outcome of this consultation, will be reported to Oxfordshire’s Schools Forum on 8 February 2023: https://www.oxfordshire.gov.uk/residents/schools/our-work-schools/oxfordshire-schools-forum

There then follows political ratification and final rates will be communicated to providers as soon as possible after that with indicative budgets no later than 31 March 2023.

The timetable is challenging for all involved. The consultation will close on 3rd February 2023 at 9am. We encourage providers to engage in this consultation and thank you in advance for your contributions.

Your data

Under the Data Protection Act 2018, we (Oxfordshire County Council) have a legal duty to protect any personal information we collect from you. Oxfordshire County Council is committed to open government and this may include quoting extracts from your consultation response in our report.

We would also like to share the full consultation responses with all councillors. We will not however, disclose the names of people who have responded unless they have provided consent. For this purpose, we ask that you are careful not to disclose personal information in your comments – for example the names of service users or children.

View Oxfordshire County Council’s privacy notice online at www.oxfordshire.gov.uk - search for ‘privacy notice’.

Have your say

We’d like to hear what you think about our Early Years National Funding Formula (EYNFF) – 2023-24 Survey.

Please fill in our online survey by clicking the ‘TAKE SURVEY’ button below.