Decision details

Proposed Decision:

1.           Approve acceptance of:

a.            the new revenue grant to support to the roll out of the wraparound childcare programme, and

b.            the capital grant to support the delivery of extended early years funded entitlement and wraparound childcare;

2.           Authorise the Director of Education and SEND to take the actions required to deliver 1. and 2. above, in line with the relevant grant conditions, including but not limited to entering into relevant contracts, to be authorised to enter into variations as envisaged under the contracts and making payments to early providers;

3.           Approve changes to the Council’s Early Years Local Funding Formula for early years providers that is used to calculate the early years funding rates for funded entitlements from 1^st April 2024; and

4.           Authorise the Corporate Director of Children, Young People and Education to make any necessary changes to the Funding Formula rates once final affordability is known and agree the payment process to early years providers.

Reason for Decision:

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 has a duty to secure sufficient childcare to enable parents to access their funded entitlement, and must, so far as is reasonably practicable, secure sufficient childcare places are available for working parents of children aged 0-14 years. 

The Spring Budget announced a range of measures to support early education and help parents with childcare so they can return to work more easily. This included new funded entitlements:

1. From April 2024, eligible working parents of 2-year-olds can access up to 15 hours per week for 38 weeks of the year.
2. From Sept 2024, eligible working parents of children aged 9 months up to 3-year-olds can access up to 15 hours per week for 38 weeks of the year.
3. From Sept 2025, eligible working parents of children aged 9 months up to 3-year-olds can access up to 30 hours per week for 38 weeks of the year.

Parents working the equivalent of 16 hrs a week (earning the national minimum wage or living age) will be able to benefit from this offer. HMRC will continue to confirm eligibility.  Eligible low-income families in receipt of certain benefits will continue to be entitled to 15 hours of funded childcare for 2-year-old children.

The Government also announced its ambition that, by 2026, all parents and carers of primary school-aged children who need it will be able to access term time childcare in their local area from 8:00 AM- 6:00 PM. This is known as wrap-around childcare.

Additional funding is  being made available to the County Council via the Early Years Funding Block to deliver the new entitlements from 1 April 2024.. 

Additionally a Wraparound Childcare grant is being provided, during the three financial years of 2023-24 to 2025-26.  The County Council is to receive a maximum of £52k in 2023-24, £4.1m in 2024-25 and £1.9m (provisional) in 2025-26. 

The County Council has also been allocated £2.6m capital funding to help ensure the new entitlements and wraparound childcare ambition can be secured.  It is expected the capital is split 80:20 respectively.

The County Council needs to take a number of actions to deliver the existing and new entitlements and ambitions.

1.    The Council is responsible for both determining 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.

2.    The Council remains responsible for setting the funding rate for all free entitlements in 2024-25 including those due to be introduced from 1^st April 2024. This decision will confirm how this additional Early Years funding will be distributed to early years providers in line with Government guidelines. 

3.    Delivery plans need to be submitted to the Department for Education for wraparound childcare initiative – the first in February regarding delivery capacity and the second in May on the actual programme.

The options considered for setting the early years funding rates are outlined in the consultation document to early years providers. Options must meet the DfE guidelines.

The proposed decision supports the key priority “Levelling up Kent” within the ‘Framing Kent’s Future (2022-26)’.   Supporting the Kent economy to be resilient and successful depends upon having a flexible, adaptable, talented workforce.  Enabling parents to be active in the workforce is an essential component of this.

The proposed decision supports “Securing Kent’s Future – budget recovery strategy”.  The additional activity is funded by Government Grant, with allowances within these for the County Council’s delivery costs.  No additional funds from KCC are required.  Supporting families to work and be independent of state support assists the County Council’s budget position. 

Delivering the extended funded entitlements and wraparound childcare ambition is necessary to discharge the Authority’s statutory duty.  The existing provider agreement provides the revenue contracts required. Contracts/funding agreements will need to be entered in to for capital awards. 

As Cabinet Member for Education and Skills in consultation with Cabinet Member for Integrated Children’s Services, I agree to:

I.               approve acceptance of:

a.             the new revenue grant to support to the roll out of the wraparound childcare programme, and

b.             the capital grant to support the delivery of extended early years funded entitlement and wraparound childcare;

II.             authorise the Director of Education and SEND to take the actions required to deliver the new funded early years entitlements and wraparound childcare aspirations, in line with the relevant grant conditions, including but not limited to entering into relevant contracts, to be authorised to enter into variations as envisaged under the contracts and making payments to early providers;

III.           approve changes to the Council’s Early Years Local Funding Formula for early years providers that is used to calculate the early years funding rates for funded entitlements from 1^st April 2024 as set out below:

a.    the basic rate for all free entitlements for 2024-25:

b.    Additional supplementary rates for 3- & 4- year-olds free entitlements:

-       Deprivation: based on a children’s eligibility against the Index of Deprivation Affecting Children Index – providers with children residing in the top 25% most deprived areas will receive an additional rate of between £0.54 per hour and  £0.13 per hour per eligible child.   

-       Qualified leader (for those employed on Statutory Teachers’ terms & conditions):  £1.20 per hour;

-       Qualified leader (for Early Years Professionals & Teachers’ who are not employed on statutory terms & conditions): £0.30 per hour;

-       System Leadership (Quality): fixed budget of £250,000

c.     there will be no additional supplementary rates for either 2-year-olds and 9 months to 2 years (with all funding passed through the base rate only). 

d.    to budget for the Special Educational Needs Inclusion Fund to be jointly funded from the High Needs Block and Early Years Block from 2024-25;

e.    to budget for a 1% contingency to mitigate against the financial risk of implementing the new funded entitlement offer for working parents for 2-year-olds from April 2024; and for children from 9 months in September 2025.  

f.      use of up to 5% of the Early Years Block to fund centrally retained early years services provided by the Council.

g.    The Disability Access Fund and Early Years Pupil Premium payments will be set at nationally prescribed rates and eligibility criteria.

h.    implement a monthly payment process for childminders during 2024-25.

IV.           and, Authorise the Corporate Director of Children, Young People and Education to make any necessary changes to the Funding Formula rates once final affordability is known and implement payment process to early years providers.