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