Presentation Title Presented by John Smith September 2013 Early Years Funding and Extension to 30 hours of childcare Presented by Laura McRoberts September 2016 Presentation Title Presented by John Smith September 2013 welcome introductions fire drill

Agenda The Early Years funding formula – nationally and locally- What does it mean? 30 hour entitlement – who's entitled Rules for delivery Next Steps and Key Dates Health warnings. These are marked with the following symbol: These sessions have been designed for information and to ensure everyone can attend. They contain a large amount of information. Some information has been summarised on slides. Several sessions are running today. Each is 90 minutes long. We have a scribe that will taking minutes as we go along. We will try to answer any questions, however we have put up questions board just in case you have any additional questions. Please add your question to the board (post it notes have been provided. We will circulate the questions and answers placed on the boards from all the sessions on Friday. I am happy to take questions as we go. but we will keep to time . so the agenda is – funding formula show understanding of the figures that have branded about and to try to put it in a contact and what it means for Croydon rules around delivery and what we understand at this stage which parents are entitled next steps Health warnings- Our DSG income allocations have not been confirmed by the government. The figures released were indicative allocations. The council is awaiting this confirmation and the government’s response to the Early Years funding consultation that ended in September 2016.

The New National Fairer Funding Formula The new DSG Allocation from 17/18 to local authorities is based on: A base rate which makes up 89% of allocated funding Additional needs factor Area cost adjustment Never meant to be the same for all the country but areas but based on clear formula Additional needs factor is based on free school meals English as a additional language disability living allowance area cost adjustment is based on general labour market and relative nursery premise cost not based on every one getting the same but the formula being transparent however how they have undertaken the calculation and the formula they use has not been realised and you may be aware that the research the government has used to underpin the formula has not yet been realised

3 and 4 year olds child hour rate – comparison Local Authority Rate Difference Croydon £5.13 - Brent £5.37 £0.24 Waltham Forest £5.52 £0.39 Enfield £5.62 £0.49 Lewisham Merton £5.64 £0.51 Haringey £5.66 £0.53 Ealing £5.83 £0.70 Greenwich £6.17 £1.04 Lambeth £7.32 £1.19 the table compares Croydon’s three and four year old child hours rate with other boroughs classed as Croydon’s statistical neighbours . Local authorities are considered to be statistical neighbours if they share a number of similar characteristics. The table demonstrates that the proposed child hours rate for LB of Croydon is low when compared to our neighbours.

The New National Fairer Funding Formula – continued The LA’s funding allocation is not based on actual pupil numbers. In the absence of an updated technical note for the 17/18 DSG income allocations for early years it has been presumed this will be calculated in the same way. The income calculation is based on two sets of census data. One of the key points to note when child hours rates are being talked about is that local authority we are not paid on actuals. The government does not receive a adjustment based on the actual number of children attending settings during each term. Adjustments to funding are based on census data P5. Technical Guidance Note for 16/17 DSG Early Years Allocation. Early years entitlement for three and four year olds 11. The amount per pupil for the early years free entitlement is the same as for 2015 to 2016. Initially, this has been multiplied by pupil numbers from the January 2015 early years census and school census to produce a provisional allocation. This will be updated in: • July 2016 based on January 2016 pupil numbers • July 2017 based on 5/12ths of the January 2016 pupil numbers (to cover the April 2016 to August 2016 period) and 7/12ths of the January 2017 pupil numbers (to cover the September 2016 to March 2017 period) 12. This means that the final allocation for three and four year olds for 2016 to 2017 will be based on 5/12 x January 2016 pupil numbers plus 7/12 x January 2017 pupil numbers. If we go over our allocation then the only option we have is to take it from that years allocation for the following year

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Croydon – Funding Allocation Allocation of 3 and 4 year funding for Croydon- £22,748,826 Proposed 3 and 4 year old child hours rate £3.99.( current rate is £3.71) 2 year old funding is £3,575,116 2 Base rate is £5.66 (current rate £6.31) EYPP allocation is £180,329 (£0.53 per hour ) Base rates explained- What to the rates £5.13 and £4.62 represent. Croydon allocation includes the 1st 15 hours and the additional 15 hours rate to providers is after the 7% for central costs has been taken off the 2 year old rate does not include any add on costs nor does the EYPP calculation

Breakdown of Draft Three and Four Year Old Child hourly rates for 17/18 Analysis of indicative funding rates Value Rate analysis Base rate £19,345,247 £3.99 Deprivation £273,953 £0.09 Inclusion fund £570,000 £0.19 Contingency £957,208 £0.32 Central LA £1,592,418 £0.53 Total £22,748,826 £5.13 Our allocation has still to be confirmed and this may change everything is very late this year base allocation dep this will be calculation the same as we have for this year and is based on IDACI formula Inclusion we are expecting further guidance however we intend to allocate the same way we have this year – when the guidance is realised the only date this early 2017 this may have to reviews Central fund is 7% of the total pot . This is a reduction from 16/17 and is predicted to reduced again in 18/19. The LA will need to make savings to reflect this reduction. Contingency this high so this year we have £957,208 allocated and I will explain why

Contingency The Council will need to fund the following out of the income allocation; Any increase in the number of three and four year olds after the census date in January 2017. The childcare costs for the children who fall into the ‘grace period’ for the additional 15 hours. Any increases in the number of two year olds after the census date in January 2017. The uptake of the full offer of 30 hours of childcare. If the contingency is not fully utilised then the funding is allocated back into the main income allocation for the following year and incorporated into a new base rate. The DfE funds the council according to the number of children attending settings on census day. Any increases in student numbers after this date will need to be funded out of the allocation (Where children fall out of eligibility mid-term, providers must be paid until the end of the agreed grace period d, but the Education Funding Agency will reduces the allocation from the point of eligibility.) The DfE funds the council according to the number of children attending settings on census day. Any increases in student numbers after this date will need to be funded out of the current 3 and 4 year old allocation as the 2 year old rate is paid in full to the sector Estimates have been used to calculate the number of children eligible for the additional 15hrs of childcare as the census is not due till January. However take up will only be fully known from September 2017. Government have used a proxy to calculate this but the government does not currently collect the data for this. however if the contingency is not enough and we overspend that will have to be paid for out of that years allocation

Allocation of the funding to the sector by the LA 93% of the total income allocation for early years must be passed to the sector and this is to increase to 95% in 18/19. All early years providers must be paid the same rate. All providers must be paid in advance. By 2018 providers must be paid monthly. on average Croydon has about 10% for central costs so we will need to make saving from that allocation the allocation we already by the same rate to all providers and we pay in advance but we will need to move schools and childminders to monthly payments

Two Year Old Child Hours Rate Croydon has received an indicative allocation £5.66 per hour two year olds. The plan is to pass this onto the sector. Croydon has been topping up the two year rate from the two year old reserves by £1.03 per hour (the rate for this year from DFE is £5.28) The reserves were built up over the time when Croydon was allocated a set amount and take up was low. The council is projected to have used the majority of the reserves by the end of 16/17.

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30 hours childcare offer Divided between the ‘universal entitlement’ and ‘additional’ 15 hours offers. The hourly rate paid for the universal 15 hours offer will be the same as the rate paid for the additional 15 hours. This is not a ‘forever’ offer; eligibility needs to be checked termly although details of a national ‘grace period’ are currently being consulted on. The offer of the additional 15hr of childcare is being introduced by the government from September 2017. .

Criteria for the additional 15 hours The additional 15 hours will be available to families where both parents are working (or the sole parent is working is a lone parent family) Each parent earns, on average, a weekly minimum equivalent to 16 hours at National Minimum Wage (£107) and less than £100,000 a year. Parents can check their eligibility online. Eligibility needs to be checked termly.

Delivery Rules The funded hours can now be delivered between 6 am. and 8 pm. 10 hours is the maximum number of child care hours that can be claimed in one day. The 2.5 hour minimum session length has been removed. Funding can be split between two sites in any one day. Funding cannot be offered over fewer than 38 weeks.

Next Steps…. 28th November 2016- an email will be sent to the sector asking for information regarding the number of funded places that the setting intends to deliver. This will be for two, three and four year old funding. Could you also provide additional details regarding the support that your setting would require to provide 15 and 30 hrs places.

Important Dates 1st December 2016 - forms to be sent out via email for budget predictions regarding the budgets for the universal 15 hours offer. 9th December 2016- Deadline for the return of Autumn pro-formers. 19th January 2017 – Early Years Census 20th January 2017 – pro-formers returned Waiting for DFE Guidance ?

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