Agenda item

Hine Thompson presented the report (Agenda Item 10), which set out proposals for the 2026-27 Early Years budget and rates, based on recommendations from the Early Years Funding Group.

Hine Thompson reported that the proposed Local Authority rate was £1.15 for early years pupils, and the provider rate was £1.92, which was an 11.6% increase. She outlined the wider context, noting pressures arising from the government’s planned expansion of the 30?hour childcare offer to children aged nine months to three years by 2027/28, combined with sector uncertainty relating to new entitlements and falling birth rates. Once the Early Years deficit was fully addressed, the intention was to retain a small contingency to manage volatility.

Hine Thompson noted that the historic Early Years deficit had reduced substantially and the reasons for this were set out in the report. A forecast deficit of £180k was expected at the end of 2025/26, shifting to a forecast surplus of £124k in 2026/27.

No questions were raised by the Forum, the Chair therefore invited members to consider the recommendation to agree the hourly rates for Early Years entitlement for 2026/27 and that the Early Years DSG budget for 2026/27 be set at the level detailed in the budget model. A proposal to agree the recommendations was proposed and seconded and at the vote with all forum members the motion was approved.

RESOLVED that the recommendations set out in section two of the report were agreed.