Early Education Provider Funding Rates

Have your say

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

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 2022-23 have increased. 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 2022-23 has increased to £4.70 from £4.53 in 2021-22.

From this 3- and 4-year-old allocation, the DfE allows the Local Authority to retain 5% of the allocation for, “centrally retained funding” (for 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 calculated after deductions for the mandatory Deprivation Supplement, SEN Inclusion Fund allocations and Contingency. If these elements were held at the same levels as in 2021-22, and the full hourly rate increase was passed to providers, the provider hourly rate paid would increase by 17p per hour from £4.18 to £4.35 per hour. The consultation proposes adjusting the universal hourly rate to meet increased need on both the SEN Inclusion Fund (2p per hour) and Deprivation budget (1p per hour). If both of these proposals were implemented, this would deliver a universal hourly rate to providers of £4.32 rather than £4.35 (prior to targeted Deprivation and the SEN Inclusion funding).

Early Years Pupil Premium (EYPP) – The existing, 2021-22, national rate of 53p per hour per eligible child, up to a maximum 570 hours per year, will increase by 7p to 60p per hour in 2022-23

Mandatory deprivation supplement – This continues to be mandatory in 2022-23 and the Local Authority will maintain the rate at 47p per child per hour. This is the only supplement in 2021-22, in order to maximise direct funding for all providers via the hourly rate. The consultation asks if providers wish to continue with this as the only supplement.

Disability Access Fund (DAF) - The national rate for DAF is increasing in 2022-23 from £615 per eligible child per year to £800. 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 £1.99 per universal hour from £1.92 in 2021-22, reflecting the increase in the 3- and 4-year-old hourly funding rates.

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. At Oxfordshire, the current rate is £38.50 per week paid to schools and settings indicating the number of children using a ‘k’ code on their census return. Due to the high demand, it is proposed to increase the budget for the fund, and increased scrutiny and improved procedures will be implemented in 2022-23

2 Year olds – The funding rate from the Government to Oxfordshire in 2022-23 is £5.89 per hour from £5.68 per hour in 2021-22. 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 9th February 2022: 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 early as possible and by 31 March 2022.

The timetable is challenging for all involved. The consultation will close on 31st January 2022 at 9am. We encourage providers to engage in this consultation and thank you in advance for your contributions.

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