Agenda item

(To receive a report from Geraldine O'Neill, Sustainability and Development Manager, which provides the Schools' Forum with a summary of the Early Years National Funding Formula for 2021/22; details the funding distribution for early years providers in Lincolnshire for 2021/22; and seeks agreement for the Local Authority's proposals relating to the allocation and distribution of the centrally retained budgets)

The Chairman invited Geraldine O'Neill, Sustainability and Development Manager to present the report, which provided a summary of the Early Years National Funding Formula for 2021/22; detailed the funding distribution for early years providers in Lincolnshire; and sought agreement from the Schools Forum to the Local Authority's proposals relating to the allocation and distribution of the centrally retained budgets.

The Forum was advised that the spending review provided nationally £44m for early years education in 2021/22 to increase the hourly rate paid to childcare providers for the governments' free hours offers.

It was noted that Lincolnshire's government funded hourly rate before protections were applied was £4.24.  The rate had been uplifted by £0.06.  The government then topped up all rates to an increased minimum funding floor of £4.44 for Local Authorities.

Details of the six relevant funding streams which formed the Early Years block of the DSG were shown on the top of page 44.

It was reported that the early years indicative funding for Lincolnshire for 2021/22 was £35.529m, based on the January 2020 census information.

Note: Lea Mason left the meeting (2.06pm).

The Forum was advised of the Lincolnshire's Early Years funding formula for determining the local universal rate.  Details of the approach taken by the Local Authority were shown on pages 46 and 47 of the report.  It was reported that for 2021/22 the local universal base hourly rate per pupil was £4.04, an increase of £0.06 from 2020/21.

It was noted that for 2021/22 the Local Authority would be continuing to use the same deprivation factor and deprivation monetary values which had been in place for 2020/21.  Details of the deprivation scores and associated funding were shown in table 1 on page 48 of the report.

The Forum was advised that the SEN Inclusion Fund had been reviewed in line with national guidance and that the planned funding allocation using the current protocol was remaining the same for the financial year 2021/22 at £0.650m per annum, which represented £0.081 per pupil per hour.

It was reported that Local Authorities were able to hold back funding to act as a contingency to fund providers throughout the year.  It was noted that the annual budget of £0.129m was required to cover additional hours.

The Forum was advised that the government required Schools Forums to agree 2021/22 central spend for early years by 28 February 2021.  Details of the budgets requiring Schools' Forum agreement were:

·       Early Years Entitlement & Securing Sufficient, Sustainable Provision £519,191;

·       Early Years  Foundation Stage (EYFS) Quality Improvement, Advice, Support, Workforce & Training for the Sector £911,069; and

·       Special Education Needs & Disabilities (SEND) Local Offer £77,400.

Details of Lincolnshire's Early Years Funding Distribution were shown in table 3, on page 55 of the report for the Forum's information.  It was highlighted that the pass-through funding was 95.76%, which was greater than the 95% government requirement threshold.

It was reported that the two year old hourly rate for 2021/22 was £5.03 per pupil, which was an £0.08 increase from the 2020/21 per pupil funding level.  The Forum noted that the increase was made up of the government funding addition.

A short discussion ensued, from which the following points were raised:

·       Thanks were extended to the Early Years Team for all their support during lockdown;

·       Concerns were expressed regarding the longevity of providers, as a result of reducing numbers;

·       Benchmarking information with regarding to central spend.  The Forum was advised that benchmarking information was available on line from the government, and this would be made available to members of the Forum.  Reassurance was given that as much funding as possible was passed on to providers, the Local Authority would only retain what was necessary for supporting providers;

·       Risk analysis information.  The Forum was advised that this information would be included going forward;

·       Maintained Nursery schools had not seen an increase in their rate since 2016/17; and

·       Whether calculation of the deprivation supplement would be affected, as previously the October census data would have been used.  Officers confirmed there had been a slight reduction in attendance to what there had been in the previous year, but it was felt there was no need to change the methodology.

RESOLVED

1.    That the Early Years National Funding Formula report presented be noted.   

2.    That the Local Authority's proposals for centrally retained funding as detailed in the report on pages 50 to 52 be agreed.