Purpose

Local Authorities are required
to consult with early years providers and Schools Forum with any
proposed changes to their Early Years Funding Formula. Under very
tight DfE timelines, a consultation took place between 20 December
2024 and 19 January 2025. Taking account of the outcomes of the
consultation proposals matching the decision below were supported
by Schools Forum on 7th February 2025.
 
This will be implemented from 1
April 2025.

Content

Increase the amount retained
centrally by £275,652. £30,000 to further support
administration and distribution of the early years funding as the
free entitlement continues to expand. £200,000 for inclusion
support that the council can no longer afford to pay for from its
core budget and £45,652 for inflation at 4%.
Retain a contingency fund of 0.8%
from each funding stream. Funds will be paid to providers and not
used for any other purpose.
Transfer £500,000 from the
Early Years Block to the High Needs Block in 2025-26 to support
financial sustainability as per the Safety Valve Agreement with the
Department for Education.
SENDIF budget is set at £3
million, which includes a £2 million contribution from the
Early Years Block in addition to the £1 million contribution
already agreed from the High Needs Block
To undertake further engagement with
providers and research into payment systems operated by other local
authorities before any decisions are made regarding the frequency
of payments.