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Decision details

*re-published: call-in no longer applies* 2019/2020 Early Years Funding Formula

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

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decision:


To implement Option 1 below in respect of the consultation on the methodology used to calculate the deprivation funding supplement and the associated base funding rate.
Option 1: Reduce all bands of deprivation by 3p, thus removing the lowest band, and increasing the base funding rate accordingly by 3p on all hours. Base rate £4.01, Deprivation Band A 54p, Band B 7p and Band C 4p
This option provides funding stability to providers as there will be no change to the overall funding received by providers at a time when the market is already experiencing financial challenges, and also has the following benefits:
(i) A higher base funding rate of £4.01 for all providers,
(ii) An increase to the monthly base rate payments received by providers whilst decreasing the amount of quarterly paid deprivation, thus a small cash-flow advantage,
(iii) Easier for providers to calculate their base income.

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 £4.30 per hour. This funding rate provides the calculation basis for the 2019/20 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 which are provided free at the point of delivery. This funding rate was implemented in 2017/18 and there has been no increase in 2018/19 or 2019/20.

When the Early Years National Funding Formula was introduced in April 2017, the base funding rate was reviewed in North Yorkshire, however at the time, it was agreed to undertake a later review of funding supplements once we had experience of the operation of 30 hours funded provision. It is now considered appropriate to review the methodology for the calculation of the deprivation funding supplement. A number of options have been developed for the calculation of the supplement and a consultation has been held with early years’ providers between 21st November 2018 and 17th December 2018.


Alternative options considered:

In total six options were consulted upon.

Publication date: 14/04/2021

Date of decision: 26/02/2019