The move by the Department for Education is to ‘provide greater funding certainty to nurseries and childcare providers’.
The DfE has also said it has made clear to all local authorities that they should confirm funding rates that come into force from 1 April, no later than the end of February.
It comes after many early years providers refused to commit to delivering the extended hours until they found out their funding rate. Nursery World reported earlier this week that just a handful of local authorities had confirmed their funding rates to providers.
At the same time, the latest Government data shows that 102,480 children have registered for the extended hours.
Announcing the new rules for local authorities, the DfE said, ‘Each year, the Government sets out funding rates in the autumn, to take effect in the following financial year.
‘A window - likely to be eight weeks - will be introduced, within which local authorities have to confirm rates, after the point the Department announces local authority rates. We will work with the sector in the coming weeks to finalise the approach.
Today the DfE has also announced further details of its recruitment campaign including a sign-up bonus of £1,000.
'It is vital that Government works closely with providers and local councils in the weeks ahead to ensure that this change is one that will work in practice'.
The Early Years Alliance welcomed the move to bring in the new timescale for local authorities, but warned that shortening the window local authorities have to confirm rates, could mean there isn’t enough time for councils to consult with providers before making a final funding rate decision.
Chief executive Neil Leitch explained, ‘For far too long, early years providers have faced the prospect of having to wait until the very end of March to find out what funding rate they will be receiving in April, leaving them with no time to budget or prepare for the financial year ahead. We know what a huge strain this has placed on those affected settings, and so we welcome the fact that the Government has finally taken action on this issue and is looking to ensure that providers receive their final rates in good time before they come into effect.
‘That said, we are very mindful that while much blame has been placed on local authorities for these delays, councils cannot start the work needed to confirm provider funding rates until they themselves receive their own rates from Government. There is a risk, therefore, that by simply shortening the window that local authorities have to confirm rates, rather than committing to providing them with their own rates earlier, we will end up in a situation where local authorities don't have enough time to consult with local providers before making a final funding rate decision.
‘It is vital that Government works closely with both providers and local councils in the weeks ahead to ensure that this change is one that can and will actually work in practice.’
The National Day Nurseries Association (NDNA) said bringing forward the deadline for local authority funding decisions was a ‘step in the right direction’.
