Decision details

To increase the provider base funded rate for the universal and extended funded entitlement for three and four year olds from £4.01 per hour to £4.09 per hour for the 2020/21 financial year.

To increase the provider funding rate for disadvantaged two year olds from £5.20 to £5.28 per hour for the 2020/21 financial year.

To note the 2020/21 funding rates from the DfE for other early years funding rates which have remained unchanged.

*PLEASE NOTE This decision was originally published on or near the date of the decision and so call in no longer applies. It has been re-published as part of the change in committee management system that we use.*

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.

On the 31st October 2019, the DfE announced an increase in the early years’ local authority
funding rate for the 2020/21 financial year. The funding rate for three and four year olds in
North Yorkshire will increase by 8p per hour from £4.30 per hour to £4.38 per hour. The level
of funding for disadvantaged two year olds will also increase by 8p per hour from £5.20 per
hour to £5.28 per hour.

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%

Modelling was undertaken to develop options for the distribution of the 8p per hour funding
increase for the 2020/21 financial year and a funding consultation was held with Early Years
providers in order to gain views on the options developed. The consultation was held
between 2nd December 2019 and 13th January 2020. 70% of respondents preferred this option (Option 1).

Option 2 – Base rate increases from £4.01 to £4.08. Deprivation rate is increased by 1p for Band A, B and C. Band A will be 55p, Band B will be 8p and Band C will be 5p