Agenda item

To consider the attached report of the Assistant Director, Finance and the Assistant Director, Education

Consideration was given to a report of the Assistant Director of Finance and Assistant Director, Education, which set out arrangements for the Dedicated Schools’ Grant (DSG) Early Years Funding for 2023-24.

Members were made aware that consultation had been launched for the period 1 February 2023 until 15 February 2023, in order to gather opinions on the proposals set out in the report.  The proposals for 2023-24 were outlined as follows:

·       To introduce a Teachers’ Pay & Pensions Grant (TPPG) Supplement, for the immediate purpose of replicating the Teacher Pay & Pension Grant that had been received by maintained primary schools and primary academies delivering the 3 and 4 year old entitlement. This Supplement would extend to other providers (PVI providers) that had not previously received the Grant and could now be eligible, where they employ a qualified teacher and pay the employer’s National Teacher Pensions contribution (currently 23.68%). It was proposed to fund this Supplement to eligible providers at a rate of £0.23 per hour for 3 and 4 year old’s in 2023-24.

·       That providers would be eligible for this Supplement in 2023-24, if they received Teacher Pension Grant funding in 2022-23, or if they evidenced to the Authority that employed a qualified teacher, who would directly deliver the 3 & 4 year old early years entitlement (the Early Years Foundation Stage), and that pays the national employer’s contribution to Teacher Pensions (currently 23.68%).

It was noted that, due to the late stage at which the rolling in of the Teachers’ Pay and Pensions Grants into the Early Years Funding Formula had been announced, the proposed supplement was intended to replicate the grants as closely as practically possible. It was further explained that this was to prevent the adverse impact of any providers seeing a reduction in funding.

It was proposed that the Special Education Needs Inclusion Fund (SENIF) would be increased to £500k for 3 and 4 year olds and approximately £66k for 2 year olds.  It was also noted that the demands for SENIF support from providers and seen significant growth and that work with Early Years providers would continue, in order to ensure that there was a clear and robust criteria for allocating this funding.

It was proposed that the hourly rate of funding for 3 and 4 year olds would increase from £4.35 to £4.49, with 5% retained centrally.  It was also proposed that the hourly rate of funding for 2 year olds be increased from £5.40 (£0.14 retained centrally) to £5.46 (£0.14 to continue to be retained centrally) and confirmed that the £0.14 per hour for central retention had been previously agreed by Schools Forum.

Furthermore, Members were made aware that the allocation rate for Early Years Pupil Premium (EYPP) had increased from £0.60 to £0.62 per hour, per eligible pupil, up to a maximum of 570 hours and that the allocation rate for Disability Access Fund (DAF) had increased from £800 to £828.

Responses to the consultation were shared with Members and it was noted that there had been a high level of engagement, with 79 responses received.  The outcome of the consultation was shared and it was stated that:

·       Support had been given for the proposals for 3 and 4 year olds. 58% (46 respondents) supported the proposals, 42% (36 respondents) did not and 0 respondents did not provide a

response.

·       Support had been given for the proposals for 2 year olds. 60% (46 respondents) supported the proposals, 40% (29 respondents) did not and 2 respondents did not provide a response.

It was explained that in relation to the proposals for the 3 and 4 year old funding and 2 year old funding, many providers had raised concerns that the uplift to the base rate did not cover the increased cost in national living wage and energy prices.  A number of concerns had also been raised in relation to schools being unfairly funded at the expense of other providers.  For clarity, it was explained that the rolled in funding from the Teacher’s Pay and Pension Grants was funding schools had previously been in receipt of and was not new or additional funding.

RESOLVED

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

(ii)That the preferred option for the allocation of a quality supplement be supported by Members of Schools Forum