To be implemented from April 2017 Principles of the Early Years National Funding Formula (EYNFF) for 3 and 4 year olds To be implemented from April 2017

EYNFF Overview Allocations are for existing 15 hours and additional 15 hours for eligible working parents. All LAs should be funded by the EYNFF by 2019-20 The formula consists of: A universal base rate plus factors for additional needs. It includes an area cost adjustment multiplier to reflect variations in local costs.

3 and 4 year old funding What’s changing? New requirements on how LAs are able to allocate funding to providers from April 2017. A minimum amount of funding to be passed through to providers. 93% 2017/18 and 95% 2018/19. Centrally retained amounts will be capped at 7% and 5% respectively. A local universal base rate for all types of provider – set by LAs by 2019/20. Supplementary funding for Maintained Nursery Schools (MNS).

3 and 4 year old funding What’s changing? New requirements on how LAs are able to allocate funding to providers from April 2017. Reforms to mandatory and discretionary supplements. The introduction of a disability access fund (DAF). LAs required to set up an SEN inclusion fund.

What’s not changing? Two year old funding allocated on a national formulaic basis, i.e. not counted in the 3 and 4 year old formula. Suffolk’s rate will increase from £5.15 per hour to £5.20 per hour from April 2017. EYPP will continue to be provided and will be distinct from the EYNFF, i.e. not counted in the 3 and 4 year old formula. Children with more complex needs and those with an EHCP continue to be eligible to receive funding via the high needs block of DSG.

Use of funding supplements These cannot be more than 10% of the base rate funding Must have Deprivation supplements Could have Rurality/sparsity Flexibility Quality EAL

Additional Funds for 3 and 4 year olds Disability Access Fund (DAF) for those in receipt of child disability living allowance and taking up free entitlement. Not included in the EYNFF. SEN Inclusion Fund for children with lower level or emerging SEN.

Suffolk’s position DfE has reduced the total amount of funding available in the Early Years Block of DSG – this is the biggest issue. New requirements restrict options on how the EYNFF is used.

Use of Supplements 4 options proposed for Suffolk Deprivation supplement plus a quality supplement for QTS/EYP/EYT only Deprivation supplement only none for quality Increase base rate and lower deprivation supplement only none for quality Reduce the deprivation supplement and increase quality supplements – not recommended.

Financial Impact of Options Base rate Quality DeprIvation £ per hour £ per child Option 1 3.70 0.25 A 255.00 Option 2 0.00 363.00 Option 3 3.80 267.00 Current rates 3.50 0.74 0.63 B 0.42 C 0.21 D

Have a comment to make? Contact:   qualitymattersineducationandlearning@suffolk.gov.uk to comment, favourably or otherwise, on any aspect of Suffolk County Council’s school improvement strategy.