Agenda item

Avril Allenby introduced the report (Agenda Item 9), which set out the proposal for the Early Years budget 2023/24, which was based upon the recommendations of the Early Years Funding Group (EYFG).

Avril Allenby reported that unlike reports for other budgets, the one for early years had to be brought to the Forum late in the year and this was because of the way the funding was calculated. They had to wait for a review of the number of places and hours that had been taken up.

Avril Allenby explained that when the report was pulled together in consultation with the EYFG, two areas needed to be taken into consideration. Firstly the deficit recovery and secondly how to work with local providers to provide a balanced and fair budget that could be passed through to providers to ensure they could continue to operate effectively for young children.

Avril Allenby highlighted that much within the report was good news. There was increased funding for the various aspects of the early years grant. It was however still important to be mindful of the deficit, which was not being recovered as quickly as desired.

Lisa Potts reported that for the current years forecast, the number of hours taken up had decreased. The consequence of this was that a reduced level of grant funding would be received. The budget had initially been set with a high level of deficit (£368k) however, taking all factors into account, this was not expected to be as high (£65k). This was an improved position of £303k on the budget. Progress was also being made with the pass through rate which had been quite high historically and had reduced to 98.2 percent for 2023/24.

Lisa Potts highlighted that the table under 6.3 of the report showed the current base rate and what it should have been if the deficit recovery plan had been followed. Figures had been proposed for the hourly funding rate and had been agreed by the EYFG.

The table under section 6.7 of the report showed the budget for 2023/24. This was particularly difficult to pull together because the income estimate was based on schools census information from January 2023 and then also 2024. The key figure within the table was the in-year shortfall for 2023/24, which was £71k and much lower than expected for the current year.

Lisa Potts drew attention to section 6.8 of the report regarding the quality rate. In the past there had been a good level of quality across providers in terms of the standard of staff providing the service. The problem was that this also impacted on the pass through rate. The number of hours that were eligible for the quality rate had increased from 53 percent in 2019/20 to 62 percent in 2022/23. This was something that might need to be reviewed going forward.

Lisa Potts highlighted that for the centrally managed funds the budget for the SEN Inclusion Fund had been increased and some analysis for this was included within Appendix A to the report. It was hoped that the increase in the SEN Inclusion Fund would help support more children at a younger age. 

The Chair commended the effort that had gone into trying to balance the budget, which was a great achievement.

Catie Colston referred to information on the quality rate and asked for this to be explained in more detail. Avril Allenby reported that a quality rate had always been provided in West Berkshire and when the national funding formula was introduced it had needed to be rationalised. The settings that attracted the quality rate had to have either a qualified teacher or a qualification that was equivalent. Avril Allenby reported that this was something that had been encouraged because it would good for early years however, it had been encouraged so well that there was a much higher proportion of children attending settings that attracted the quality rate. There were also now more schools that provided nursery provision. Avril Allenby explained that going forward they would be looking into whether the quality rate could be differentiated depending on qualifications, but this would need to be consulted on.

Reverend Mark Bennet reported that there had been some information in the national press regarding the number of early years’ providers reducing and he queried what was happening to the number of local providers. Reverend Bennet stated that one of the areas considered by the Forum in the past was its success in reaching disadvantaged pupils in early years, and he asked if there was any information to show how this area was progressing.

In response to Reverend Bennet’s first question regarding providers, Avril Allenby reported that locally there had not been as many closures due the cost of living crises, compared to that reported nationally. Those providers at risk had managed to re-assess their services and continue to operate. Business support was also provided to providers at risk of closure. Avril Allenby reported that there had been no closures in 2023/24 and in the previous year four very small providers had closed.

Regarding Reverend Bennet’s second question on vulnerable children, Avril Allenby reported that the vulnerable two year old rates had dropped during Covid however, it was now steadily climbing back up. There would soon be a review of SEN places as it needed to be understood how well children with SEN were accessing their entitlements and to ensure there were sufficient places. Reverend Bennet stated that this was an area that would need focus going forward as the budget would come under increasing pressure from economic factors.

Keith Harvey proposed that the two recommendations set out in section two of the report were approved and this was seconded by Melissa Cliffe. The Chair invited the Forum to vote on the proposal and at the vote the motion was approved.

RESOLVED that:

·         The Schools’ Forum approved the Early Years DSG budget for 2023/24 as set out in the report and that focus should remain on deficit recovery and lowering of the pass-through rate.