Decision details

Proposed decision

The Cabinet Member for Education and Skills to:

1. Approve Kent County Council’s local funding rates for distributing the Early Years Supplementary Grant to early years providers from September 2023. 

2. Delegate authority to the Corporate Director of Children, Young People and Education to make any necessary changes to the Local Funding Formula rates.

Reason for the decision:

In response to the Department of Education confirming additional funding will be made available for Early Years from 1^st September 2023. This decision will confirm how this additional funding will be distributed to early years providers in line with Government guidelines. 

Background:

All eligible parents of children aged three- and four-year olds are entitled to up to 30 hours free childcare per week up until they start school with this offer extended to disadvantaged two-year olds. The Council is responsible for both setting the Early Years Local Funding Formula which is used for setting the hourly rates paid to early years providers for this Free Entitlement offer, along with paying providers. This is fully funded from the Early Years Block of the Dedicated Schools Grant provided by the Department of Education.

The free entitlement rates for providers are normally set once a year in line with the financial year. However, as part of the 2023 Spring Budget, the Government announced its intention to provide local authorities with an additional in-year funding uplift from September 2023, along with further expansion of the free entitlement offer in future years. The additional monies for 2023-24 will be received through a separate standalone top up grant known as the Early Years Supplementary Grant (EYSG).  

The Council will need to set the local funding rates for distributing EYGS to providers.

Government guidance has also confirmed Local Authorities are not required to consult formally, although they are encouraged to engage with early years providers about the additional funding.

The decision is linked to achieving the objective “the Children and young people in Kent get the best start in life” within the ‘Increasing Opportunities, Improving Outcomes: Kent County Council’s Strategic Statement (2015-2020)’.

Options:

The options for the setting the Early Years local funding formula rates will be considered once the Government confirms final allocations.

As Cabinet Member for Education and Skills, I agree to:

1. The allocation of the Early Years Supplementary Grant (EYSG) 2023-24 to Providers of the Free Entitlement offer using the following rates from September 2023:

·       £1.79 per hour for 15 hours entitlement for disadvantaged 2-year-olds.

·       £0.42 per hour for 15 hours universal entitlement for 3 and 4-year-olds.

·       £0.42 per hour 15 hours additional entitlement for 3 and 4-year-old children of working parents.

·       £5,560 lump sum for Maintained nursery schools (MNS) supplementary funding (equivalent to £9,532 for a full year).

·       £0.04 per hour Early years pupil premium (EYPP).

·       £30.92 Disability access fund (DAF) (equivalent to £53.00 for a full year).

2. A contingency, equivalent to 7.5% of the grant valve (equivalent to approximately £460k), to be held to mitigate the risk where the cost of payments may be higher than the amount of grant received. For the requirement of this contingency to be reviewed in light of the EYSG conditions of grant due to be published in the Autumn Term and January 2024 census data. Where the contingency is not required, an additional allocation will be made to providers in agreement with the Cabinet Member of Education & Skills.

3. Delegate authority to the Corporate Director of Children, Young People and Education to make any further necessary changes to implement this decision.