Decision details

To consider the results of the funding consultation undertaken with early years providers operating within North Yorkshire and to approve recommendations to change the funding rates paid to early years’ providers for the funded entitlements for 3 & 4-year-olds (universal and working parent entitlements), additional support 2-year-olds, working parent 2-year-olds and working parent under 2-year-olds for the 2026/27 financial year

CYPS Executive Members agrees the recommendations in respect of the funding rates paid to early years’ providers for the funded entitlement for 3 & 4-year-olds, 2-year-olds of families in receipt of additional support, 2-year-olds of working families and under 2-year-olds of working families for the 2026-27 financial year

Following the principle based early years funding consultation undertaken with the early years sector within North Yorkshire in Autumn 2025, the following principles have been applied to the calculation of the proposed provider base funding rates for the2026-27 financial year:

The local authority funding retention rate for the provision of centrally managed
service provision for early years is approx. 3% for all funded entitlements.

The funding for the Early Years SENIF is provided from the Early Years DSG Block (approximately 2% of local authority funding rate for all funded entitlements)

There is a single provider base funding rate for the 2-year-old entitlements for
families in receipt of additional support and working parents.
The proposed funding rates provide a 8.96% (48p / hour) increase on the 3 & 4-year old funding rate for 2026-27 compared to the 2025-26 base provider funding rate, a
4.93% (36p / hour) increase on the 2 year-old funding rate for 2026-27 compared to the 2026-27 base provider funding rate and a 5.05% (50p / hour) increase on the
under 2 year-old funding rate for 2026-27 compared to the 2025-26 base provider funding rate. The higher increase for the 3 & 4-year-old funding rate reflects the DfE local authority ‘adjusted’ hourly rate for 3 and 4-year-olds after allowing for the termly funding adjustment.