To note and approve the 2015/16 DSG allocation for Early Years Block including provision for two year olds and the early years pupil premium

To note and approve the early years contingency.

The Forum considered a report to note and approve the 2015/16 DSG allocation for Early Years Block including provision for two year olds and the early years pupil premium.  In addition, they were asked to note and approve the early years contingency.

The Early Years Bock has three defined areas:

·                The three and four year old entitlement

·                The early years pupil premium

·                Funding for disadvantaged two year olds

The DfE confirmed on 17 December 2014 that the Early Years remains one of the funding blocks within the funding settlement for 2015/16.  The Early Years Block includes:

·                     The three and four year old entitlement

This is a continuing entitlement which has been set at the same per pupil rate as in 2014/15 (£2,587 for CBC).  The rate is multiplied by the January early years census for a provisional allocation.  The figure is revised in July 2015 with the January 2015 pupil numbers (to cover the April to August 2015 period) and 7/12ths of the January 2016 pupil numbers (to cover the September 2015 to March 2016 period).  The Schools Forum approved a local Funding Formula in 2009 for Central Bedfordshire.  The Formula includes the following:

·                     A base rate or enhanced base rate for settings providing flexible attendance

·                     An enhancement for staff qualified at a higher level

·                     An additional enhancement based on areas of deprivation

·                     The early years pupil premium (EYPP)

This new payment came into effect from April 2015 and pays an additional £300 per year per eligible child that takes up the full 570 hours to the provider.  This is an hourly rate of 53p per child per hour.  The estimated provisional allocation for Central Bedfordshire in October 2014 was £171k.  The Department for Education will conduct a survey on take up of the EYPP in the Autumn 2015, any adjustments will be made following the survey in January 2016.

·                     Funding for disadvantaged two year olds

The funding for this element has been predicted on an hourly rate, announced in October 2014, of £5.03 for Central Bedfordshire Council.  The initial allocation will be made in July 2015 for 2015/16 and will be based on eligible children participating (not demographic information) in early education as detailed in the January 2015 early years census and school census.

·                     The DfE will allow for an update of figures in the autumn term 2015 and any required adjustments will be made in January 2016

·                     From June 2016 the allocations will be based on the 5/12ths and 7/12ths formula used for the three and four old entitlement

·                     An Early Years contingency will be held in case of a pressure resulting from this change in allocation

The Senior Finance Manager confirmed that £2.8m had been initially allocated for 2015/16 subject to School Forum approval.

The Contingency as at May 2015 for the Early Years was £2.43m.  This was comprised of:

£1.276m for two year olds

£1.154m for payment made for three and four year olds (including £118k 2013/14 Early Years contingency balance was rolled forward)

£0.5m has been used from the Early Years Block Contingency to contribute to the increase in the Schools Budget for 2015/16.

Following approval at the January 2015 Schools Forum meeting (minute no. CBSF/14/26 refers), the three and four year old payments have been subject to an increase of just 5p per hour for PVIs and 15p per hour for Lower Schools from April 2015.  These increases will help utilise the some of the contingency, the balance will mitigate any shortfall in funding available for two year olds.  There is anticipated a shortfall of £785k due to possible take up.  The summer term traditionally has the largest number of children.

The Contingency also covers Inclusion funding awarded for children with additional needs.

The Forum expressed concerns regarding the proposal for two year olds and the impact on schools.  It was requested that the Early Years Technical Sub Group be established to consider termly reports and provide the Forum with updates on the uptake and financial impact.  Forum members unable to attend the meeting would be contacted to be part of the sub group.

It was agreed that a further report would come to the next meeting to enable the Forum to give their approval.

RESOLVED

1.         That the 2015/16 DSG allocation for the Early Years Block be noted.

2.         That the Early Years Contingency be noted.