Agenda item

Action

Claire White on behalf of the Early Years Steering Group presented the report on the Early Years funding and budget proposal 2015/16.

The total under spend for 2014/15 is forecast at £722k mainly due to Government funding of two year olds being fixed at a much higher take up level than the actual. This has helped offset the increase in take up of three and four year old places which has not been matched by an increase in DSG funding. In 2015/16 two year old funding will be based on January census data akin to three and four year old funding, which increases the uncertainty for this block of funding. The 2015/16 funding estimate for the purpose of setting the budget has been based on the January 2015 census, and including the carry forward totals £7.729m.

The proposal for 2015/16 is that the formula and funding rates will remain the same as 2014/15, and the overall budget requirement of £7.715m can be met by utilising the carry forward.

The carry forward will only help 2015/16 and the Early Years Steering Group will start work in the Summer term to look at ways of balancing the budget in 2016/17 including reviewing the hourly rates and formula as there are no other funding streams available to this sector. The only way of making savings in the EYB is to reduce the funding rate to providers (which needs to go to consultation with all providers) and it was too late to do this for 15/16. 

Suzanne Taylor added that there are about 97 settings in the sector which includes private and state run nurseries that have the challenge of coping with term by term changes to pupil numbers, statutory staff to pupil ratios, many staff paid on minimum wage, and in effect real time funding cuts as there has been no increase in rates since 2010. Given the only option to make savings is to cut the funding rates to providers; time is needed for settings to plan for this.

Volatility will also be an issue with the introduction of the Early Years Pupil Premium Grant (EYPPG) from April 2015. The volatility in pupil numbers means the Early Years Steering group are not sure that the EYPPG funding which will also follow the child will be sufficient and any shortfall will also have to be met from the EYB.

The whole of the early years block is a high risk budget that will need careful review during the year.

The recommendation from the Heads Funding Group was to agree the proposals. The funding of the SEN pre-school proposed saving from the EYB was also discussed and agreed.

DECISION: The Schools’ Forum agreed that the Early Years under spend 2014/15 should remain in the Early Years Block in 2015/16.

DECISION: The Schools’ Forum agreed the Early Years budget proposals set out in the report with an amendment for the £10k transfer from EYB to HNB for Early Years Pre-School SEN.