The school, early years and 14-16 funding consultation is a vital exercise for any nursery providing places for the free early years entitlement scheme. This consultation could potentially transform the way you receive your funding. It is essential that you get involved and share your views.
What is the consultation and how does it relate to me?
Chapter five is the section relating to early years. This makes radical proposals for changing funding streams. It also explores what local authorities might need to do to help you deliver a more flexible entitlement.
What is the DfES proposing in terms of funding?
The DfES is making four proposals to reform funding. The consultation recognises that the difference in the way private, voluntary and independent (PVI) and maintained settings are funded can cause difficult issues. These include discrepancies in the amount of money given per place depending on the type of setting, and schools sometimes receiving funding for places that aren't taken up.
The four proposals give different options for the future. The key aspects are highlighted below and they aim to resolve some of the issues and ensure a fairer funding system. The consultation asks if early years should be given a greater role on Schools Forums and if funding for the entitlement should be earmarked separately.
Proposal one
Standardising methods for setting the per-pupil level of funding across sectors. Key elements:
* Local authorities would use the same set of factors when calculating funding levels across all sectors
* This would help justify differentiated funding between sectors, but if funding needed to increase and there wasn't enough money, local authorities would need to do this gradually
* There would still be a 'Minimum Funding Guarantee' - a minimum amount the DfES guarantees per child to a local authority.
Proposal two
Consistent counting methods for pupils across all settings. Key elements:
* Currently funding is allocated to PVI settings by headcounts, but maintained settings use different methods such as place funding or pupil counts, so funding might not really reflect take-up
* This proposal would mean maintained settings would count take-up in the same way as PVI settings. But issues in the counting systems mean that such a change couldn't be piloted until 2009-10, with the new system used from 2011-12 onwards
* Local authorities would be encouraged to start using sessional counts to work out funding allocations during 2008-09.
Proposal three
Bringing budget calculations for maintained and PVI settings closer. Key elements:
* Currently school budgets are finalised at the start of the year, and if a child moves, provision money is not taken back
* This proposal suggests funding PVI settings in the same way to create financial stability. Nurseries could be funded through place funding, termly estimates of children or funding a minimum number of children
* But all these options could lead to funding of unfilled places, leading to less funding available per place. The DfES says funding unfilled places could be avoided by careful management at a local level and as you know your budget for the year ahead, you have the stability to be more flexible in delivery. You should consider if this option would work for you and if not, what would.
Proposal four
A single formula at a local level for funding all entitlement. Key elements:
* Local authorities would have a 'formula' that could calculate funding and recognise significant differences between sectors, that is, taking into account factors such as costs of premises, rents or rates
* Proposals one or two would need to be in place before a single formula could happen
* If delivery of the entitlement is only part of provision, costs of delivering this would need to be balanced against the actual costs of running the setting.
What other factors would need to be taken into account? Costs such as workforce development will increase the true cost of delivering free sessions.
All these proposals will change the way funding for the entitlement works.
Make sure you think about what will work best - does funding need to work differently from the proposals?
Importantly, the consultation questions whether early years should have a greater role on the Schools Forums. These do not make decisions on funding for early years. However, the local authority does have to consult with them on decisions. The consultation asks you to say if representation for you is important. Think about who could represent you on these.
A separate pot of funding
The consultation also asks if money for the entitlement should be earmarked within the Dedicated Schools Grant. This would mean the funding could not be used for anything other than the free entitlement. NDNA believes this is a vital point and should ensure that more money reaches nurseries.
Having your say
Make sure you read the consultation before responding. NDNA will be responding on behalf of its members. To help them share feedback we have created a briefing paper on the consultation. Briefing papers are usually only available to members but due to the importance of this consultation, we are making it available to all nurseries. If you would like a copy (electronic only), e-mail jessica.hamilton@ndna.org.uk with your name and full address and the subject 'briefing paper'.
Consultation on School, Early Years and 14-16 Funding 2008-2011 can be viewed at www.dfes. gov.uk/consultations. The consultation ends on Friday 21 June.
Hayley Wilson is a spokesperson for the National Day Nurseries Association
