Decision details

2021/2022 Early Years Funding Formula

Decision Maker: Corporate Director of Children and Young People's Services

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No


To increase the provider base funded rate for:
• the universal and extended funded entitlement for 3

Reasons for the decision:

The Early Years National Funding Formula provides a local authority funding rate for three and four olds in North Yorkshire at the funding floor level of £4.38 per hour. This funding rate provides the calculation basis for the 2020/21 three and four year old Early Years DSG allocation. The local authority hourly funding rate covers both the costs of provider funding and any central services related to early years provision that are provided free at the point of delivery. The level of funding allowed to be retained is 5%. On the 17th December 2020, the DfE announced an increase in the early years’ local authority funding rate for the 2021/22 financial year for three and four year olds of 6p per hour to £4.44 per hour and 8p per hour for disadvantaged two year olds to £5.36 per hour.
The three and four year old funding rate paid to early years providers consists of a base funding rate and funding supplements. A funding consultation has been held with Early Years providers in order to gain views on the proposal to increase the 2021/22 base provider funding rates by the level of increase received in the Local Authority early years DSG funding rate. The recommended rates were favoured by the majority of respondents.
The funding levels received from the DfE for the other early years funding rates have remained unchanged for 2021/22.

Alternative options considered:


Publication date: 24/02/2021

Date of decision: 23/02/2021

Accompanying Documents: