Decision details
Early Years Provider Funding Rates 2023/24
Decision Maker: Corporate Director Children and Young People's Services
Decision status: Recommendations approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose:
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
entitlement for 3
Decision:
To increase the provider base funded rate
for:
- the universal and extended funded entitlement for 3 & 4 year
olds from £4.31 per hour to £4.57 per hour for the
2023/24 financial year.
- disadvantaged 2 year olds from £5.51 to £5.64 for the
2023/24 financial year
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 £4.61 per hour.
This funding rate provided the calculation basis for the 2022/23
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.
On the 16th December 2022, the DfE announced an increase in the
early years’ local authority funding rate for the 2023/24
financial year. The funding rate for three- and four-year olds in
North Yorkshire (i.e. the amount received by the local authority)
will increase by 26p per hour 1 The National Living Wage (NLW) will
rise to £10.42 from 1 April 2023, an increase of 92 pence or
9.7%. OFFICIAL from £4.61 per hour to £4.87 per hour
(the minimum funding floor). The increase in funding for three- and
four-year olds reflects the mainstreaming of the teachers’
pay and pension grant equating to 5p per hour and 21p related to
the funding increase outlined in the Spending Review announcements
and the updating of the underlying data to the latest available
datasets. The level of funding for disadvantaged two-year olds will
also increase by 13p per hour from £5.57 per hour to
£5.70 per hour (representing a 2.3% increase). Early
years’ pupil premium will increase by 2p per hour (3 & 4
year universal entitlement hours only) from 60p per hour to 62p per
hour (representing a 3.3% increase) and disability access funding
will increase by £28 per annum from £800 per annum to
£828 per annum (representing a 3.5% increase)
The regulations accompanying the Early Years National Funding
Formula restrict the level of three- and four-year old funding
which can be retained for the delivery of centrally managed
services associated with early years’ provision. The level of
funding allowed to be retained is 5%. There are no regulations
restricting the level of two-year old funding which can be retained
by the local authority. 2.5 In addition to the three- and four-year
old funding, the Early Years DSG allocation also includes funding
for disadvantaged two year olds, early years pupil premium,
disability access funding and maintained nursery school
supplementary funding. 2.6 The three- and four-year old funding
rate paid to early years providers consists of a base funding rate
and funding supplements. The provider base funding rate for 2022/23
is £4.31 per hour. Within North Yorkshire, funding
supplements are currently paid for deprivation, which is a
mandatory funding supplement, and sparsity
Alternative options considered:
None
Publication date: 14/03/2023
Date of decision: 14/03/2023
Effective from: 22/03/2023
Accompanying Documents:
- Early Years Provider Funding Rates 2023/24