1. Early Years Provider Information Evening
Welcome
Early Years Provider Information Evening
January 2017
Elaine Hammans: Group Manager – Early Years

2. Welcome Early Years Funding – Early Years National Funding Formula
Funding for 2 Year Olds
EYPP
Disability Access Fund
30 Hours
Eligibility
Early Implementers
Business Support and Sufficiency
Key milestones
EY Census
Contracts
Safeguarding
Parent Portal launch Headcount
Training

3. Early Years National Funding Formula – Key reforms
Fairer funding for local authorities – with Southend seeing a small increase in funding
Maximum funding for providers – with a commitment to pass on 93% in 2017/18 and 95% from 2018/19
Fairer funding for providers – moving to a flat rate for all providers, excluding the deprivation funding, from 2019/20
Greater transparency for providers – simplifying any supplements added to the hourly rate
Additional funding for children with SEND – a new Disability Access Fund and the requirement of a SEN Inclusion Fund
The aim of the Early Years National Funding Formula is to allocate funding fairly, efficiently and transparently, to ensure that a sufficient number of providers are in a position to deliver both the existing universal 15 hours entitlement for 3 and 4 year olds and the new additional 15 hours entitlement for children of working parents when 30 hours of free childcare is implemented nationally from September In addition we are committed to ensuring and maintaining sufficient high quality provision for targeted 2 year old funding.
Southend is one of the 80% of local authorities to receive an increase, however this is only an increase in funding to providers if it continues to be supported through the main Dedicated Schools Grant, implemented by Southend Schools Forum.

4. The key points are:
The new formula allocates funding to local authorities for the existing 15-hour entitlement for all three- and four-year-olds and the additional 15 hours for three- and four-year children of eligible working parents. The funding rates for both the existing 15-hour entitlement and the additional 15-hour entitlement are the same. Funding in for the additional 15-hour entitlement (the 30 hour childcare policy) is for part of the financial year, reflecting the fact that this policy begins in September 2017.
The formula consists of a universal base rate plus factors for additional needs, using measures of free school meals; disability living allowance and English as an additional language.
The formula also includes an area cost adjustment multiplier to reflect variations in local costs. This uses the General Labour Market measure to indicate staff costs and Nursery Rates Cost Adjustment (NRCA) to indicate cost of premises.
The formula includes a minimum funding rate of £4.30 per hour to local authorities, which will give local authorities the scope to pay providers an average funding rate of at least £4 per hour.
A funding floor ensures that no local authority can face a reduction in its hourlyfunding rate of greater than 10% against its baseline. Transitional protections ensure that in any year, no local authority sees an annual reduction in their hourly funding rate of more than 5%.
All local authorities should be funded by the early years national funding formula by

5. Information from Page 14 of Operational Guidance
Mandatory supplements Deprivation:
29.Local authorities must use this supplement to recognise deprivation in their areas. Local authorities can choose the amount of funding to channel through this supplement as long as the total value of all supplements used does not exceed the 10% cap.
Discretionary supplements
Rurality/sparsity: 30.A rurality/sparsity supplement is permitted to allow local authorities to support providers serving rural areas less likely to benefit from economies of scale. Flexibility:
31.A flexibility supplement is permitted to support providers in offering flexible provision for parents. This could, for example, be childcare wraparound care, outof-hours provision or to encourage a particular type of provider in an area (such as to meet a need for childminders in an area). Quality:
32.A quality supplement is permitted to: • support workforce qualifications, and/or; • support system leadership (supporting high quality providers leading other providers in the local area). English as an additional language (EAL): An English as an Additional Language (EAL) supplement is permitted.

6. Proposed Early Years Funding - Rates
Pre-School
Registered Childminder
Independent School
Day nursery
Maintained School & Academy
Funding Rate 16/17
3.90
4.07
4.13
4.55
Funding Rate 17/18
4.18
4.42
Funding rate 18/19
4.21
4.30
Funding rate 19/20
4.24
Deprivation Rate 16/17
0.46
Deprivation Rate 17/18 +
0.44
Local authority funding to providers
13.There are now a number of new requirements on how local authorities are able to allocate funding to providers from
14.These requirements are intended to ensure that funding provided by the EFA is fairly distributed to providers. The main changes are:
• A minimum amount of funding to be passed through to providers.
• A local universal base rate for all types of provider, to be set by local authorities by at the latest.
• Supplementary funding for maintained nursery schools, for the duration of this
Parliament.
• Reforms to mandatory and discretionary supplements local authorities are able
to use.
• The introduction of a disability access fund.
• A requirement for authorities to establish a special educational needs inclusion
fund.
Timetable
(Dec 16 – Jan 17) Consultation with providers
(18 January 2017) Paper to Schools Forum following consultation for recommendation
(End January 2017) Formal paper for Approval by LA

7. Proposed Early Years Funding - Consultation
Local authorities will be required to use a ‘universal base rate’ of funding for all providers, meaning that a child in a private, voluntary setting would receive the same basic level of funding as a child in a nursery class in a primary school. To ease the transition to the new system it will only be a requirement from 2019/20.
We have proposed the funding rates based on the DfE illustrative allocations. This rate is subject to funding from central government continuing at the same amounts, recommendation from Schools Forum and formal agreement from the local authority.
Local authority funding to providers
We propose the following funding rates based on the DfE illustrative allocations. This rate is subject to funding from central government continuing at the same amounts, recommendation from Schools Forum and formal agreement from the local authority.
Local authorities will be required to use a ‘universal base rate’ of funding for all providers, meaning that a child in a private, voluntary setting would receive the same basic level of funding as a child in a nursery class in a primary school. To ease the transition to the new system it will only be a requirement from 2019/20.

8. Proposed Early Years Funding - Consultation
Providers registered for Early Years funding
157
Responses received so far (17 providers)
11%
Providers in favour of retaining deprivation supplement only
76%
Providers in favour of flexibility, EAL or both
18%
Providers in favour of staged reduction in base rate
(including both schools who responded)
53%
Providers in favour of passing on a rate of £5.20 to providers with the residue retained as discretionary funding to support
2 year olds who are in need but do not meet the DfE criteria
Consultation with Southend Providers, as required by DfE
December 2016 and closed 11 January 2017
Paragraph compiled for schools forum report is drafted.
To be updated taking into account any further responses and cut and pasted here on Monday.
3.2There are currently 157 Providers registered for Early Years funding. 17 responses to the consultation were received, a just over 11% response rate. The following is a summary of responses to the consultation questions. A copy of the consultation is attached.
3.2.1 Supplements – DfE allows for supplements on the base rate which can only total a maximum of 10% of funding which is 44p per hour (only the Deprivation Supplement is mandatory). The consultation asked whether providers wished to retain the deprivation factor only or were in favour of adding flexibility, EAL or both
76% were in favour of retaining the deprivation supplement only
Only 18% were in favour of flexibility, EAL or both factors.
A number of providers indicated that they would value more support for children with EAL (by answering Yes to question 1 and question 4, which were mutually exclusive). It is most likely that the majority of children with EAL would meet the deprivation factor criteria, so providers would be able to use the deprivation supplement funding to support EAL.
3.2.2 Staged approach – DfE have stated that all providers must be paid the same base rate by 2019/20. To support school nursery provision who currently receive a higher rate than other providers, a staged approach with a reduction of 2.75% in 2017/18 and a further 2.75% reduction in 2018/19 was proposed.
53% were in favour of the staged approach support for school nurseries including both the schools who responded.
Year old funding – the confirmed rate for 2 year old funding 2017/18 is £5.24 per hour. The consultation proposed passing on a rate of £5.20 to providers with the residue retained as discretionary funding to support 2 year olds who are in need but do not meet the DfE criteria. Assuming year olds the £0.04 per hour held back will create a small pot (of £12K) for discretionary 2 year old spending.
76% were in favour of the £5.20 rate and discretionary fund.

9. Proposed Early Years Funding - Consultation
SEN Inclusion Fund
Paragraph compiled for schools forum report is drafted.
To be updated taking into account any further responses and cut and pasted here on Monday.
Providers who want to retain SEN Inclusion Fund at current level (£40,000)
59%
Providers were asked what they felt the fund should support:
Low level and support during EHCP assessment
65%
Health needs
82%
SEN Inclusion Fund – this funding has been made mandatory form 2017/18. Southend BC has for some years provided annual funding of £40,000. The consultation asked whether providers felt the funding should remain at this level or be increased. Providers were reminded that an increase in funding would have a detrimental effect on the base hourly rate.
59% wanted to retain the fund at the current level (£40,000)
When asked what they felt the fund should support:
65% agreed with low level and support during EHCP assessment, and
82% agreed to include health needs

10. Funding for two-year olds
Current government funding is:
£4.89
Southend subsidises this, paying £5.10 per hour. (unsustainable in the longer term.)
£5.10
Government funding for 2017/18 has been increased to £5.24 an hour from April 2017.
£5.24
We propose to increase the rate to £5.20 an hour, using the remaining 0.04p for a local authority discretionary 2 year old funding.
£5.20
Discretionary 2 year old funding pot
£12,000
Information from National Funding Formula Operational Guidance
Funding for the most disadvantaged 2-year olds is already allocated on a formulaic basis.
The Government has committed to
uplift the average two-year old hourly funding rate
£5.09 to £5.39
and to implement this will retain the current two-year old formula.

11. Early Years Pupil Premium (EYPP).
Additional funding continues to enable local authorities to support disadvantaged pupils through EYPP.
EYPP continues to be paid within the DSG
There are no funding changes for the EYPP for
EYPP remains distinct from the early years national funding formula and
Will continue as
a separate funding stream.
The government has committed to
review the delivery mechanism for EYPP,
taking account of the delivery mechanism for the new disability access fund (DAF).
Guidance
£100
Per child per term
Maximise funding
‘Opt-out’ from summer 2017
Early years pupil premium (EYPP)
8. Additional funding continues to be provided to local authorities in order to support disadvantaged pupils through the early years pupil premium (EYPP).
12.Further details can be found in the existing guidance on the EYPP.
Maximise this funding –
How much per child per term?
9. The EYPP remains distinct from the early years national funding formula and will continue as a separate funding stream.
From Summer term 2017 Opt out
10.EYPP continues to be paid within the DSG and there are no funding changes for the EYPP for
11.The government has committed to review the delivery mechanism for EYPP,
taking account of the delivery echanism for the new disability access fund (DAF).
We will provide further details in due course.

12. LA Funding to providers: High pass-through requirement.
Information from page 8 of the EYNFF Operational Guidance
5.There are new requirements on the amount of funding for 3- and 4-year olds that local authorities must pass to providers. This pass-through requirement is intended to ensure the maximum amount of funding allocated to local authorities by the EFA reaches providers.
16.The pass-through funding level is set at 93% in It will increase to 95% from This means that centrally retained funding (for central services or services in-kind) combined with any funding movement out of the early years block will be constrained to a maximum of 7% in and 5% from
17.In local authorities need to plan to spend at least 93% (95% from ) of the hourly rate they receive from the government directly on providers. Prior to each financial year, local authorities need to plan to meet this requirement in determining their planned budget allocations. (Please note that we also intend to monitor outturn data, and may change to assessing compliance based on outturn in future. We will also monitor provision on the ground in order to follow up any anomalous results).
18.The diagram overleaf sets out the requirements of local authorities:

13. LA Funding to providers in Southend
Local universal base rate
Maintained nursery school (MNS) supplementary funding
Use of supplements
Supplement cap
Local universal base rate
to provide a higher level of funding to maintained nursery schools.
21. Local authorities are required to set a universal base rate in their local single
24.The EFA will be undertaking a data assurance exercise to verify current
funding formulae, meaning there must be a base rate the same for all types of
expenditure levels in those authorities with MNSs. This will take place in the early
provider, by no later than We will monitor progress in moving toward the universal base rate over the next two years.
part of We will provide more information to local authorities in due course.
Maintained nursery school (MNS) supplementary funding
Use of supplements
25.Local authorities will continue to have the ability to use funding supplements.
22.Supplementary funding for maintained nursery schools will enable local authorities
Supplements are amounts of funding which are given in addition to the base rate
to maintain their current maintained nursery schools funding levels. The
to reflect local needs or policy objectives.
methodology for allocating the additional MNS funding is explained in the technical
Supplement cap
26.The total value of supplements used in any authority must not be more than 10%
note.
23.As the universal base rate is introduced, we will allow local authorities to continue
of the total value of planned funding to be passed through to providers.

14. Disability access fund (DAF)
The introduction of additional targeted Disability Access Funding of £12.5 million per year to support providers to make initial reasonable adjustments and build the capacity of the setting to support disabled children.
If you provide places for any 3- or 4-year-olds who receive disability living allowance (DLA), your setting is eligible to receive disability access funding, which is £615 per child per year.
Add something re: SEN Inclusion Fund

15. 30 hours What? Who? What is the extra funding for?
Support working parents to manage the cost of childcare
Support parents into work
Changes to benefits
Social mobility and family units
Needs of families - stretched offer over a year, flexibility of sessions, parental choice, different providers
Who will be eligible?
Parents of 3 and 4 year olds where both parents are working (or the sole parent in a lone parent family) and each earns between: 
at least the minimum equivalent of 16 hours a week at the national minimum wage or  national living wage. and
Each parent (or lone parent) individually earns less than £100,000 per year.

16. 30 hours: The context for the local authority
Childcare Act 2006
Information for families
Information for providers
Duty of LA and relevant partners to work together
Specific duties in relation to early childhood services
2016 Act
As above plus – duty to publish info to parents on childcare available in their area, information advice and assistance and checking eligibility
Quality support for those settings less than good
Securing sufficient childcare places

17. 30 hours: The context for the local authority
Additional Funding - Securing a fair hourly rate
Recognising the challenges – business planning
Understanding the potential - and possibilities
Working together – finding solutions
Getting ready – key milestones

18. 30 hours – Early Implementers
83% take up rate –
parent applications
Some parents left it until last minute to apply / sort hours
First term may be a ‘switch’ from fee-paying hours to the extended entitlement
to Business Success
Early Implementers:
Wigan
Staffordshire
Swindon
Portsmouth
Northumberland
York
Newham
Hertfordshire

19. Sufficiency Termly sufficiency updates:
Early Years and Childcare Audit 2016
Termly sufficiency updates:
Please look out for information update
requests.
February
May
November
We need your feedback in order
to support you.
30 hours
Success
Local authorities will be required to secure childcare provision free of charge to eligible children, in the same way they do for the universal free entitlement to 15 hours free childcare.
To help us ensure there is enough provision available in Southend we consulted with all early years providers including schools who currently offer, or plan to offer, provision for 3 and 4 year olds.
We will be requesting regular termly updates . Help us to help you by responding promptly to requests for information.
It seems a long way to go before you will be expected to deliver the free 30 hour entitlement for working parents from September 2016: but change takes time especially when it will mean strategic changes for your early years organisation.

20. 30 Hours - Business Sustainability Support
Department for Education (DfE) Online support materials
Case studies
Marketing, managing finances and business planning
Southend Early Years Team Early Years Provider
Toolkit (EYPT)
Clear and effective communication
Useful information all in one place - regularly updated
Southend Early Years Team - Development Officers
Support Visits
Advice and guidance
Training Opportunities
The Department for Education recently published a package of online support materials
on the gov.uk and Foundation Years websites to help providers ensure their businesses remain sustainable. Please do take a look at these resources, which include
key insights from successful providers,
case studies of efficient business practices
guidance on marketing, managing finances and business planning, and
an online directory of organisations that can provide business and finance support. 
DfE is keen to hear your feedback on these resources and what further support would be helpful to providers. You can send feedback to:
Early Years Provider Toolkit
Useful information about the extended entitlement.  It will be regularly updated so please check again in the future for updates
Funding contract
Parent Agreement (Declaration form)
Portal Guidance – How to submit funding claims
Statutory Guidance

21. 30 hours – Working together to succeed
Supporting providers to develop strong partnerships
Supporting providers with future planning
Clear and effective communication strategy - ensuring parents and providers fully understand the new entitlement
More information:
Keep checking for news, updates and resources. Sign up to the newsletter
Look out for the launch of for regular blogs, tools, resources and news
It seems a long way to go before you will be expected to deliver the free 30 hour entitlement for working parents from September 2016: but change takes time especially when it will mean strategic changes for your early years organisation.

22. Take steps now to get ready for 30 hours
Understand your business and that you are a business
Understand the local market in which you work
Understand the needs of families
Managing and monitoring your money
Consider the options available to you
Use your market research to create a business plan/action plan
Implement your plan Communicate and promote the entitlement to families
Review and monitor your plan
Take steps now to get ready for 30 hours 8 7 6 5 4 3 2
Understand your business and that you are a business 2 Understand the local market in which you work 3 Understand the needs of families 4 Understanding your finances 5 Managing and monitoring your money 6 Consider the options available to you 7 Use your market research to create a business plan/action plan 8 Implement your plan 9 Communicate and promote the entitlement to families 10 Review and monitor your plan
Understanding the local market in which you work
To know what is missing or to find opportunities you need to understand:  What childcare providers operate in your area?  What do they offer families?  What flexibility choices can families get from other providers?  What do they charge?
Once you have a clear picture of what is on offer in your local area, you can start to identify gaps in the market or opportunities. For example:  If all providers are term time only. Can you deliver over 47.5 – 51 weeks?  If no-one opens earlier than 8.00am and all provision closes at 6.00pm – Can you extend your day? Can you offer 6am to 8pm? Is there demand?  If there is a lot of term time and sessional provision – Could you develop and offer a new before, afterschool and holiday care solution?
It seems a long way to go before you will be expected to deliver the free 30 hour entitlement for working parents from September 2016: but change takes time especially when it will mean strategic changes for your early years organisation. 1

23. 30 hours – key milestones
Parents able to find out from HMRC if they are eligible
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Parent Portal launched for 2YO checking
Provider information evening
Business support workshops and 30 hours training programme
Providers able to validate eligibility:
ECS checking available
Providers able to validate eligibility via Early Years Portal
Providers complete Spring sufficiency update
Providers complete Summer sufficiency update

24. Census and Headcount Headcount Day: 19 January 2017
Important Spring Headcount Information
For the spring census we are required by the DfE to collect additional establishment information on staff numbers, qualifications and also numbers of children.
Spring funded Hours
The total funded hours for the spring term is 165 hours.
Important Dates
Headcount Day: 19 January 2017
Portal not available: 21 January 2017
Portal headcount task deadline: January 2017
Additional information form deadline: January 2017
Final headcount payment: Week commencing 13 March 2017
The spring headcount task is now live on the EY Provider Portal, Make sure you have logged in and started headcount - please follow this link to login and complete your headcount task -
If you have any problems logging in, please contact the Data, Performance and Information Team on or
Important Spring Headcount Information
For the spring census we are required by the DfE to collect additional establishment information on staff numbers, qualifications and also numbers of children.
This form will be attached to a message within the portal and also available on the Southend Learning Network.
The form will need to be completed and returned to by the 27th January 2017.
Spring funded Hours
The total funded hours for the spring term is 165 hours.
This is calculated as 15 hours per week multiplied by 11 weeks in the term. Change number of weeks from 13 to 11
Important Dates
Headcount Day is 19th January 2017.
Portal headcount task deadline is 27th January 2017.
Additional information form deadline is 27th January 2017.
Other Information
Guidance on completing the headcount task and also completing 2 year old funding checks are available on the Southend Learning Network.
If you have any queries about the headcount task please contact the Data, Performance and Information Team on or
If you have any queries about 2 year old funding applications or placement notifications please contact Joan Gibbons on or

25. Early Years Funding Safeguarding Contract Parent Portal
2YO eligibility checks can be done
by parents from February 2017
onward

26. Parent Portal Launch: February 2017 Parents will be able to check
eligibility for 2 year old funding
Reducing the burden on early years providers.
Easier for parents to find out if they are eligible.
More information will be available soon – check SLN

27. Training Ray Easton SLN Qualifications
Reducing the burden on early years providers.
Easier for parents to find out if they are eligible.
More information will be available soon – check SLN

28. 30 Hours Provider Business Support Strategies
Business Support Training Dates
20 February (AM and PM)
21 February (AM)
22 February (AM and PM)
30 hours
to Business Success
Estimating the Effects of 30 Hours Policy
It seems a long way to go before you will be expected to deliver the free 30 hour entitlement for working parents from September 2016: but change takes time especially when it will mean strategic changes for your early years organisation.

29. Thank you
Safe Journey
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