Agenda item

Avril Allenby and Lisa Potts introduced the report that set out the proposal for the Early Years Budget, which was based on the recommendation of the Early Years Funding Group (EYFG).

Lisa Potts drew attention to section four of the report, which provided a forecast outturn for 2020/21 for the Early Years’ Service. There had been a decline in the number of hours in the January 2021 census due to Covid-19 and this had been recognised by the DfE. If uptake was below 85% of the January 2020 census then a top up would be applied. The final census figures were not yet available for West Berkshire although provisional data indicated that uptake was at 89% and therefore top up funding might not be received.

Regarding 2021/22, Lisa Potts reported that hours fluctuated year on year. Because the uptake for January 2021 was low Lisa Potts stated that she had created a number of options and used an average for the last three years for a basis for the budget for 2021/22. There was also a deficit for the block, which had been carried forward. Lisa Potts drew attention to section 5.1 of the report, which detailed that the EYFG had been consulted on reductions to the funding rates to recover the current deficit on the Early Years Block. A range of options were presented to the EYFG and the option chosen was detailed under the table in section 5.1. Lisa Potts stated that the table showed that a tapered approach to reducing rates would be used over a five year period. The Forum had agreed previously that efforts to recover the deficit should begin from April 2021. The table under section 5.2 estimated how the deficit could be repaid across the different areas and Lisa Potts stressed that this would need to be monitored as it was based on 2019/20 hours and the hours for the current year were slightly lower.

Lisa Potts drew attention to section 5.9 of the report, which provided detail on the reduction of hours in the 2020/21 financial year due to the Covid-19 pandemic. This had made it particularly difficult to set the 2021/22 budget. Section 5.10 gave an overview of the budget totals for hours based on the reduced rates for 2021/22. One of the key factors in trying to recover the deficit in the Early Years Block was the pass through rate. Currently in West Berkshire more funds were being passed through than what was being received so the suggestion was to bring this down to 100% for year one and then it would be assessed going forward once further data was available. 

Avril Allenby stated that the Early Years Budget had been discussed in great detail. The diversity of the sector made it a particularly challenging area. The Appendix to the report showed the impact on the different types of providers during the first year of recovery. Since drafting the report some funding had been secured, which was Covid grant money and could be given out to providers to support with costs.

Avril Allenby stressed that the context of the Early Years Budget and the uncertainties faced continued to be very challenging for providers, particularly around the uptake of hours. The proposal presented was the best fit approach to getting the budget back in line.

Revered Bennet noted that a Covid grant for providers had been mentioned to help provide support with costs. He highlighted that one of the issues likely to come out of the pandemic was developmental issues for children and he asked if there was likely to be any funding available to support providers with this. Avril Allenby reported that she did not believe that funding for this purpose was available from Government currently.

Ian Nichol noted that a decision had been made regarding the level of reduction in funding for three to four year olds; two year olds and deprivation and choices were clearly made. He noted that the funding for three to four year olds had reduced by 1.82%; funding for two year olds had reduced by 2.73% and deprivation funding rate had reduced by 42%. Ian Nichol was extremely concerned about the reduction in the deprivation rate, particularly at a time when there was concerns about vulnerable children. Ian Nichol was concerned that an equalities impact assessment had not been carried out as part of the report and this would have happened if it had been a Council report. Ian Nichol asked how the equalities impact of the recommendation had been assessed and evaluated by Officers.

In response to Ian Nichols question, Avril Allenby reported that a number of scenarios had been looked at and the impact these had across the different rate changes. Regarding deprivation, the Local Authority had taken a decision in the past to approach it differently to a lot of other authorities by topping up a fairly low base allocation from Government. Avril Allenby stated that in forming the proposal the aim had been to maintain levels of provision across the Authority that were appropriate and this was how the choice had been reached. Avril Allenby explained that it would be difficult to say that there would not be some impact on areas of deprivation but this was essentially because the funding to date had been very generous compared to other areas.

Ian Pearson stated that the proposal reduced the deficit budget overtime and the percentages quoted by Ian Nichol represented the reductions at the higher end across the five year period of the recovery plan. Funding for early years was particularly complicated and was very difficult to predict.  The proposal which had been thoroughly discussed at the EYFG needed to be a dynamic recovery plan so that if the funding for early years was to change in a positive way then the level of reductions set out in the table could reduce. A starting point for the plan was required and the plan would need to be reviewed on a yearly basis.

Maria Morgan reminded the group how the Pupil Premium worked in Early Years and how it differed to how it worked for schools. In Early Years it had to be applied for on a termly basis. In West Berkshire the rate had been topped up significantly. Regarding Reverend Bennet’s point regarding children with additional needs, Maria Morgan reported that most of the money in Early Years went on staffing and ensuring ratios were met. The only area where savings could be made was support for children with additional needs and therefore this could have an impact in the long term and would need to be monitored. Maria Morgan highlighted that a large difficulty facing the sector was the pressure the Speech and Language Service was under due to the shortage or therapists and this was causing a 12 month wait for services. Maria Morgan stated that she had little doubt that children starting school in September 2021 and 2022 would be impacted by this.

Ian Nichol referred to the five year projection and stressed that deprivation funding was due to be cut by double what it was to be cut in year one. Ian Nichol asked for clarification that it was only the 2021 cuts that were for consideration and that there would be opportunity in future years to review the level of cuts and how they were distributed across the funding streams. It was felt that it would also be helpful to have a formal equalities impact assessment carried out as part of reporting. The Chairman confirmed that the proposal was to consider 2021/22 budget only. Ian Pearson noted the comments made by Ian Nichol and reiterated that the plan for recovery was dynamic and could be assessed annually against allocations and pressures within the block.

Gemma Piper requested that the number of providers impacted upon negatively, particularly those that had managed to remain open throughout the pandemic be included in future reporting. This would help to show the medium to long term impact. Avril Allenby reported that a Covid related report had been brought to the Forum previously and she felt it would be appropriate to update this.

The Chairman invited Members of the Forum to consider the recommendation to agree the 2020/22 budget as detailed in 5.10 of the report. This was proposed by Brian Jenkins and seconded by Reverend Bennett. At the vote the motion was carried.

RESOLVED that

• Equality Impact Assessments to be carried out in the future when cuts were proposed.
• Avril Allenby would bring a report to a future meeting of the Forum that included detail on the number of providers impacted upon negatively, particularly those that had managed to remain open during the pandemic.
• The Schools Forum agreed the recommendation to approve the 2021/22 Early Years Budget as set out in the report.