Decision details

To consider the proposed funding allocation methodology for the Maintained Nursery School Supplementary Funding Grant and to approve the recommendation in respect of the funding allocation methodology to be used for the allocation of the grant to the three maintained nursery schools operating with North Yorkshire.

To approve an updated funding allocation methodology for the MNS Supplementary Funding Grant based on:

• £50,000 lump sum per MNS
• The remainder of the funding distributed by:
- 80% universal 3 & 4-year-old funded hours (termly headcount data)
- 10% 3 & 4-year-old post code deprivation Band A level (highest level – IMD score >34.17) (January headcount data)
- 10% 3 & 4-year-olds eligible for DAF (3-year average)

The allocation methodology previously utilised for the allocation of the MNS supplementary funding grant consisted of a lump sum allocation (£32,170) plus an amount (£1.69) per universal 3 & 4-year-old hour. Indicative funding allocations are produced at the start of the financial year based on the previous year funded hours; the allocations are updated at the end of the financial year to reflect the actual 3 & 4-year-old universal hours delivered in year.
Local authority officers have worked with representatives from the three MNS operating within North Yorkshire to review the funding allocation methodology for the MNS supplementary funding grant. The work has focused on agreeing the key principles for the allocation methodology and considering the options modelled as to the most appropriate for implementation
The review identified the following key principles for the funding allocation methodology:

• Funding allocation across the three MNS must be contained within the MNS Supplementary Funding Grant allocation received from the DfE (2023/24 indicative funding allocation £414k)
• The allocation methodology should seek to support the financial viability of all 3 MNS
• The allocation methodology should reflect operating context and characteristics of the three MNS
- 3 & 4-year-old funded hours delivered
- Deprivation
- High Needs
• The allocation data used should be objective and easily available
• The allocation methodology should be transparent and able to be locally forecasted
• The allocation methodology should avoid significant funding turbulence, both in the transition from previous allocation methodology and from year to year going forward.
• Administration of the allocation methodology should be proportionate to the level of funding involved

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