Agenda item

To consider a report from Assistant Director, Education and Assistant Director, Finance on the arrangements concerning the Dedicated Schools’ Grant (DSG) Early Years funding for 2021-22.

Consideration was given to a report of the Assistant Director of Finance and the Assistant Director of Education, which outlined the arrangements concerning the DSG Early Years funding for 2021-22.

With regard to 3 and 4 year old funding, it was explained that there had been an increase in the hourly rate of funding received by the LA, from £4.59 in 2020-21 to £4.65 for 2021-22, for both universal and extended entitlement.

A breakdown of these rates was provided for Members and they were informed that there had been a proposal to increase the base rate from £4.20 to £4.25, with the deprivations bands to remain as they were, currently.  It was further explained that there continued to be a mandatory requirement on the SEND inclusion fund, with a proposed increase from £0.180m in 2020-21 to £0.216m for 2021-22, using the remaining increase on the hourly rate.

Members were informed that the operational guidance confirmed that LAs must ensure at least 95% of the funding, in relation to 3 and 4 year olds, would be passed through to providers in 2021-22. The proposed rates, together with the SEN Inclusion Fund, would, therefore, mean the LA would be compliant with legislation and that the central retention, based on the current settlement, would be approximately £0.71m.

Members were made aware that the centrally retained funding would be used to support:

·          Early Education Funding Team – This fully supports the administration of Early Years funding, the annual costs associated with the Servelec IT system which is used to calculate and process the payments to Schools and Private, Voluntary and Independent providers.

·          Family Information Services – This supports an Information Officer.  This post provides advice, guidance and information to families wishing to access Children’s services and was implemented to support the increased demands from the early years extended provision.

·          Early Years Quality Improvement Team – This supports 4 Quality Officers and 2 SENCOs.  Support is primarily in relation to: signposting and promoting the standard 15 hours offer and extended 30 hours offer; OFSTED regulations and standards; and Special Educational Needs and Disabilities related issues.

·          SEN Team – funding support for an Early Years SEN Caseworker as specific support for SEN in early years.

·          Social Emotional and Mental Health Service – funding support for an Early Years Co-ordinator as specific support in early years.

·          Sensory Support – funding support for a Hearing Impaired Teacher as specific support for Early Years.

·          Making it REAL (Raising Early Achievement in Literacy). This is aimed at supporting practitioners to build parents’ knowledge and confidence so that they can help their children with reading and writing and create a positive early home learning environment. This programme is evidence-based, has been very successful in Oldham at raising GLD and we are currently running a trial and test cohort in eight primary schools in Tameside. The funding will be used to bring PVIs and more school nurseries on board with Making it REAL.

In relation to 2 year old funding, it was reported that the hourly rate hourly rate of funding received by the LA had increased from £5.38 in 2020-21 to £5.46 2021-22.  It was proposed that the base rate for this funding be increased by £0.06 from £5.24 to £5.30, and the SEND inclusion fund be increased by £0.02.  It was further proposed that the centrally retained element of this funding remain at £0.13, as in 2020-21.

Members were informed that there were no proposed changes for the Early Years Pupil Premium (EYPP) and Disability Access Fund (DAF).  With regard to EYPP, the allocations to individual providers would continue to based on a maximum eligibility of 38 weeks per year, 15 hours per week and an hourly rate of £0.53.  In relation to DAF, members were advised that the allocation rate for eligible children would be £615 per child.

Members were made aware that the results of the Early Years Funding Formula Consultation 2021-22 had been distributed to Members in advance of the meeting.  This consultation had gathered responses and opinion in relation to the proposals set out in this report.

Consultation was undertaken with 276 providers and 29 responses were received in relation to the proposals.  From the information collated, it was explained that 79% of respondents agreed with the proposed increase in provider hourly rate for 3 and 4 year olds and 21% disagreed.  A similar outcome was received in response to the proposed changes for 2 year old funding, with 74% of respondents agreeing with the proposals and 26% in disagreement.

A question was raised with regard to the centrally retained element of the funding, specifically, accessing funding for 2 year olds.  It was explained that the LA was looking at the most effective ways to allocate this funding and that further working groups would be set up in relation to ensuring that this continued and offered best fit for providers.  It was also confirmed that the LA was very stringent in where this funding was utilised and ensured that all funding proposals were compliant and subject to review.

A concern was raised with regard to the previous surplus in relation to Early Years Funding, when taking into consideration the relatively low starting points of children entering the primary sector.  However, it was acknowledged that the funding model was complex, particularly when taking into account fluctuations in demand.

It was noted that there was one objection to approval of central retention of Early Years funding, with a suggestion that the PVI sector were not wholly satisfied with the support they were currently receiving in relation to centrally retained funding.  However, it was acknowledged that the consultation had provided an opportunity for these views to be shared, in advance of any decisions being taken, and that this view had not been reflected in the consultation outcome.

RESOLVED

(i)     That the contents of the report be noted and supported

(ii)    That the central retention of Early Years funding be approved