1. Early Years Consultation 2014/2015 Karen Atkins Principal Finance Officer

2. Consultation Process 2014/2015 The proposals set out in the consultation paper will result in a significant change in the distribution of funding between sectors and individual providers In order to ensure a full and effective consultation process and to ensure there is sufficient amount of lead in time for settings to plan for the changes it is proposed that; –The consultation period runs from 20 th January to 28 th February 2014 –A further report is brought to the schools forum in March 2014 on the outcomes of the consultation process –Outcomes of consultation are reported back to providers in April and May 2014 –Agreement of the EYSFF for 2015/2016 at the May 2014 meeting –All settings will be notified by the end October 2014 of how the impact would have affected them if the changes had been made in 2014/2015 in order to allow settings to plan for the implementation of the new EYSFF from April 2015

3. Key Issues Change in funding of the Early Years Block to change with participation and the need to have a formula that is affordable in the longer term Whether we should move to a single rate or continue to differentiate between types of provider How funding made available from the removal of existing formula factors (lump sum) should be redistributed via the base rates Proposals to modify the deprivation factor Whether the authority should continue to recognise flexibility using a specific formula factor and if so a proposed change in the hourly rate Retention of a lower nursery school lump sum Transitional arrangements

4. Consultation Questions Q1 - Schools, Academies and Providers views of the existing formula? Q2a - Should all funding factors based on participation only with only 2 exceptions –Business rates –Proposed nursery schools lump sum Q2b - If there are any other factors that should not be funded on participation? Q2c – If lump sum factor was removed how funding should be reallocated via the base rates? Q3 – Proposals to change deprivation factor to be funded based on participation each term

5. Consultation Questions Q4a – Whether the authority continues to promote flexibility by identifying a specific funding factor? Q4b – If yes views of the proposed new funding rate Q5 – The proposal to retain a smaller nursery school lump sum as a contribution towards the legal requirement to employ a Headteacher Q6 a & b – Continuing to have base rates that distinguish between each type of provider & the revised rate for childminders Q7 – the transitional arrangements that would be preferred