Agenda item

The Forum considered a report (Agenda Item 10) which provided an update on the position of the Early Years Block Budget (EYBB) for 2015/16 and the forecast for 2016/17.

In setting the 2015/16 EYBB, it was assumed that the in year growth in numbers experienced in the previous few years would be repeated, and so the same percentage increase was included in the estimate. On this basis there was a shortfall in 3 and 4 year old funding, but the under spend in 2014/15 (mainly from 2 year old funding) was carried forward to support this budget without the need to adjust downwards the funding rates paid to providers. It was recognised that this would be a solution for one year only.

The Autumn payments had been made to Early Years Providers and officers were forecasting the same Autumn to Spring increase in pupil numbers as 2014/15. At this stage there was no indication what the actual increase would be and it might be greater than in 2014/15. Typically, the lowest uptake was in the Autumn term and it would increase to the highest number in the Summer term. Based on this calculation there would be an underspend in 2015/16.

Because the Dedicated Schools Grant (DSG) funding for 2, 3, & 4 year olds was based 5/12 on the January 2015 census and 7/12 on the January 2016 census, based on the predicted number of children in January 2016 West Berkshire’s DSG funding would significantly reduce to reflect the lower numbers and payment to providers.

In the November 2015 Spending Review, the Government had stated that it would increase the “average” funding rate paid to providers for the free entitlement alongside the increase to 30 hours provision for 3 & 4 year olds from working families. This would take place in 2017/18. The average rate quoted was slightly higher than West Berkshire’s current rate: £4.36 for 3 and 4 year olds excluding the Pupil Premium Grant (PPG) element, compared to the current rate received of £4.12, and £5.39 for 2 year olds compared to the current rate of £5.36.

Avril Allenby commented that the Department for Education had provided conflicting information regarding whether they would clawback any unspent PPG, which had had a low uptake nationally and locally.

Claire White continued that the overall position indicated an under spend of over £400k in 2015/16 but these figures ought to be treated with caution as it was impossible to predict the actual additional numbers of children who would be accessing early years provision in the Spring term and what the DSG funding would be. A clearer picture would be obtained following the January 2016 census when officers would consult with the Steering Group on its proposals for setting a balanced early years block 2016/17 budget, and present these proposals to the Schools’ Forum for decision in March 2016.

Julia Bond commented that at St Gabriel’s, calculations had already been undertaken which suggested there would be  a 44% increase in pupil numbers between Autumn 2015 and  January 2016 and would support officers’ hesitation to forecast an underspend. She further pointed out that 2016/17 would have 39 weeks of payments, as opposed to 37 weeks in 2015/16 and each week cost approximately £200k.

RESOLVED that the report be noted.