Agenda item

(To receive a report from Michelle Andrews, Head of Early Years, which provides the Schools' Forum with a summary on the early year's national funding formula for 2020/21; and to seek agreement relating to the allocation and distribution of the centrally retained budgets)

The Forum gave consideration to a report from Michelle Andrews, Head of Early Years, which provided the Schools' Forum with a summary on the early year's national funding formula for 2020/21; and sought agreement relating to the allocation and distribution of the centrally retained budgets.

In guiding the Forum through the report reference was made to the background behind the government's early years national funding formula; the national funding to Local Authorities for early years core funding.  It was highlighted that Lincolnshire would be funded at the minimum funding rate in 2020/21 of £4.38 per pupil per hour, which was a per pupil increase of £0.08 per hour from 2019/20 funding levels.  It was highlighted further that Lincolnshire's hourly funding rate of £4.38 per pupil would provide indicative funding of £35.614m for 3 and 4 year old entitlement.  It was noted that Lincolnshire was one of 46 Local Authorities funded on the minimum funding rate.

The Forum noted that the local universal base hourly rate per pupil for 3 & 4 year old entitlement had been determined at £3.98 for 2020/21, an increase of £0.11 per hour per pupil from the 2019/20 rate.  It was highlighted that this had been funded by the additional £0.08 increase announced by the government; a release of funding from the reduction in deprivation allocations determined through the IDACI criteria; a small reduction in funding previously earmarked for the fluctuation contingency fund to respond to demand-led activity, and a reduction in centrally-held funding.  Details relating to the theoretical model that determined the local universal rate were shown on page 46 of the report.

It was reported that the Local Authority for 2020/21 would continue to use the same deprivation factor and deprivation monetary values that were currently in place for 2019/20.  It was highlighted that the provider survey that had been undertaken had identified that 81% of respondents had supported the continued use of the government's Income Deprivation affecting Children Index (IDACI) measure.  The Forum noted that the current approach would allocate £0.982m through the deprivation funding formula for 2020/21.  Table 1 on page 48 of the report provided details of the deprivation scores and associated funding. 

It was noted that the Local Authority was planning to propose a change to the approach used to distribute deprivation supplements, to support the effective use of this funding in the future.  It was noted further that the Local Authority planned to engage with the sector during 2020/21 with a view to implementing changes from 2021/22.

Reference was also made to:

·  The SEN Inclusion Fund – The Forum was advised that the inclusion funding model provided a top up payment based upon a percentage increase of the universal base rate for every hour a child attended the setting for their early years entitlement (up to a maximum of 30 hours based on a child's eligibility).  It was noted that the planned funding allocation using current the protocol was being increased by £0.050m for financial year 2020/21 to £0.650m per annum, to account for the increased demand for the funding, which represented £0.080 per pupil per hour;

·  Fluctuation Contingency Fund – It was noted that the Local Authority was required to fund all participation-led funding and therefore a fluctuation contingency fund was required to meet any additional demand.  It was noted further that the annual budget of £0.129m was required, which equated to £0.016 per pupil per hour;

·  Local Authority Centrally Retained Funding – It was reported that the government required Schools Forums to agree 2020/21 central spend for early years funding by 28 February 2020 (£1.491m).  The Schools' Forum in line with the regulations, were asked to approve the following budgets

Ø  Early Years Entitlement Team - £261,122;

Ø  Securing Sufficient, Sustainable Provision -  £218,616;

Ø  EYFS Quality Improvement, Support, Advice - £786,494;

Ø  Workforce & Training Requirement for the Sector -  £147,748; and

Ø  SEND Local Offer - £76,999.

Table 2 on page 52 of the report provided Lincolnshire's early years funding distribution for 3 and 4 year olds.

The Local Authority  sought Schools' Forum support to the proposal of releasing c.£1.000m of the DSG underspend to the early years sector during the financial year 2020/21, through a temporary rate increase of £0.12 per hour per child, which was in addition to the 2020/21 established local universal base hourly rate per pupil of £3.98.  It was noted that providers would receive this funding based on their 3 and 4 year old participation hours throughout 2020/21.  It was noted further that this temporary funding only related to the financial year 2020/21.  It was highlighted that this one-off funding would give providers greater resources to provide the best opportunities for Lincolnshire pupils to reach their potential, and increase their life chances as they transition in to school.  The Forum noted that the Local Authority would be providing guidance on how it expected providers to invest these one-off monies to improve outcomes and embed practice.

The Forum also noted that Lincolnshire's funding for the most disadvantaged 2 year olds in 2020/21 had increased by £0.08 per hour to £5.28 per hour per child; and that Lincolnshire's indicative allocation for 2020/21 was £5.395m.

Table 3 on page 55 of the report provided the Forum with details of Lincolnshire's Early Years Funding Distribution.

During discussion, the Forum raised the following points:-

·         The positive benefits to early years of the extra money; and

·         One member enquired why the release of £1m could not be increase to £1.8m.  Officers confirmed that considering the context of Lincolnshire's overall DSG and future financial challenges it was felt that £1m (or £0.12 per hour per pupil) was the right amount to release as a one–off, which was in addition to the universal rate of £3.98 per hour per pupil, an increase of £0.11 per hour per pupil from the previous year.  It was highlighted that the funding increase would support the sector.

RESOLVED

1.    That the Lincolnshire Schools' Forum noted the content of the report presented.

2.    That the Lincolnshire Schools' Forum agreed to the Local Authority's proposals for centrally retained funding of £1.491m as detailed in the report.

3.    That the Lincolnshire Schools' Forum supported the Local Authority's proposal to release one-off underspends generated through the Early Years block to the sector in 2020/21 only through a temporary rate increase of £0.12 per hour per child for 3 & 4 year old entitlement.