Purpose

Local Authorities are
required to consult with early years providers and Schools Forum
when setting their Early Years Funding Formula. Under very tight
DfE timelines, a consultation took place between 15 December 2023
and closed on 21 January 2024. Taking account of the outcomes of
the consultation proposals matching the decision below were
supported by Schools Forum on 9th February.

Content

1.   
One base rate for both 2-year-old
entitlements. i.e. the disadvantaged 2
year old entitlement and the working parent 2 year old
entitlement.

2.   
No discretionary deprivation
supplement. i.e. no deprivation
supplement for the disadvantaged 2 year old entitlement, the
working parent 2 year old entitlement and the working parent under
2 year old entitlement.

3.   
Increase the amount retained centrally
by £167,200. £123,800 to
support administration of the new entitlements and £43,400
for 5% inflation on the total amount to be retained.

4.   
Create a contingency fund of 0.8% from
each funding stream. Funds will be paid
to providers and not used for any other purpose.

5.   
Transfer £500,000 from the Early
Years Block to the High Needs Block in 2024-25
to support financial sustainability as per the
Safety Valve Agreement with the Department for
Education.
6.   
SENDIF budget is set at £2
million, which includes a £1
million contribution from the Early Years Block in addition to the
£1 million contribution already agreed from the High Needs
Block.
7.   
The method for allocating SENDIF will take into
consideration children identified at SEN Support,
without the need for a Panel process and to include
a clear monitoring process to ensure that SENDIF is being targeted
effectively at those children identified as eligible.