Issue - meetings

To give consideration to the above issue prior to it being considered by Cabinet on 8 September 2009

The Committee considered a report on a draft single funding formula for early years provision to be implemented in Cheshire East from April 2010.  This Committee was invited to offer any comments to the Cabinet who would be considering the draft formula on 8 September as a basis for wider consultation.

The implementation of a single funding formula was in line with Government Guidance and funding was to be based on occupancy rather than places from April 2010.  The current system provided for different ways of funding for the maintained and for the Private, Voluntary and Independent (PVI) sector. 

The provision of free early years care for 3-4 year olds was to increase from 12.5 hours to 15 hours for the most disadvantaged areas from September 2009 and to all providers from September 2010.  There were currently 203 early years settings in Cheshire East and it was anticipated that some providers would experience a significant negative budget variance due to the changed funding arrangements.  The 2010-11 budget included some funding that was unallocated which could be used to support providers during the transition stage.  Those providers who were expected to experience a negative impact had been visited by officers and transition plans put in place to offer financial support if necessary in the 2010/11 financial year.

An Early Years Reference Group comprising representatives of early years providers, had been set up as a sub group of the Schools Forum, and had been meeting to develop the formula in line with Department for Children, Schools and Families’ guidance.  Their recommendation was that a base rate be applied to all sectors at a rate of £3.20 per child per hour, with additional allowances made for flexibility, provision within an area of deprivation and quality.  The allowance for quality related to having Early Years Professional Status and Qualified Teacher Status, with a requirement that the Early Years professional lead the practice. 

During discussion of the item Members queried whether it was possible for maintained nurseries to charge for their service, raised concern about maintained nurseries’ inability to offer more than 15 hours of child care per child per week and whether there could be an additional allowance for any early years provision that was suitable for children where English was not their first language.

RESOLVED:  That the Cabinet be advised that:

(a) the draft formula comprising a base rate plus additional allowances for the factors of flexibility, deprivation and quality be supported but consideration be given to introducing an additional allowance for provision that is suitable for children where English was not their first language;

(b) the Committee is concerned about the inequity whereby maintained nurseries are unable to offer more than 15 hours child care per child per week as this may put them at a disadvantage; and

(c) a report be submitted to this Committee with the outcome of the consultation on the proposals.