Section Subject Page. 1. Introduction Eligibility Flexibility Funding Quality Early Years Pupil Premium 11
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1 Early Education Provider Guidance April 2016 March 2017
2 Section Subject Page 1. Introduction 3 2. Eligibility 4 3. Flexibility 6 4. Funding 7 5. Quality 9 6. Early Years Pupil Premium Provider agreement Information for parents 13 2
3 1. Introduction This guidance is for providers of free early education detailing what the entitlement is, who qualifies, how to apply and the levels of quality expected from providers. It also explains what can happen if setting are unable to meet the requirements. This guidance supports the provider agreement which is effective from April 2016 March It replaces all previous guidance regarding the free early education entitlement. This guidance covers funded places for two, three and four year olds and Early Years Pupil Premium. It is important however to note that funding for two year old children is subject to eligibility criteria, whereas the three and four year old offer is a universal entitlement, open to all. Providers must agree to comply with all the terms and conditions set out in the guidance. Failure of providers to return the declaration and comply with the terms of the guidance may lead to providers having funding withheld or withdrawn permanently. New providers who are registering for the first time to offer free early education places for two, three and four year olds, will not receive funding until the agreement has been signed and returned. The key principles underpinning the guidance and in line with the early education statutory guidance are: the needs and best interests of the child should be paramount the free entitlement must be provided completely free at the point of delivery local authorities should deliver the free entitlement in a way that balances their priorities around sufficiency, quality and accessibility local authorities and providers should consult with and listen to parents about how they want to access their flexible free entitlement the free entitlement should be delivered in a way that reflects parental demand as much as possible and gives parents choice about where and how they access their entitlement. local authorities and providers should adopt an inclusive approach, promoting equality of opportunity, particularly to the most disadvantaged, looked-after children and children with a special educational need and/or disability 3
4 2. Eligibility Outcome: All children who meet the prescribed criteria are able to take up high quality early education, regardless of their parents ability to pay benefiting their social, physical and mental development and helping to prepare them for school. Evidence shows that regular, high quality early education has lasting benefits for all children. 2.0 Providers must allow all parents to access their free early education entitlement completely free at the point of delivery, incorporating those families currently living in England, and those families moving here from another country. This means that parents must not be required to purchase additional hours, food, uniform or other services that may be on offer, or be required to pay a registration, administration fee or deposit. Additional hours purchased by parents should be in line with the providers standard pricing structure, and any additional costs should not be inflated for children accessing a free funded place. The rate charged to parents for the hours outside the free entitlement is a matter for the provider and parent. These rates should be clearly set out to parents. 2.1 Three and four-year-olds Local authorities are required by legislation to secure early education places offering 570 hours a year over no fewer than 38 weeks of the year for every child in their area until the child reaches compulsory school age (the beginning of the term following their 5th birthday). Providers that are unable to offer the full 570 hours a year (15 hours per week), or do not operate over at least 38 weeks per year must inform parents that they can take the remainder of their entitlement with another provider. Providers and parents should be aware that there is no requirement for all early education places to be delivered over exactly 38 weeks of the year or in line with school term dates. The relevant eligibility birth dates are as follows: A three year old child born in the period 1st April to 31st August 1st September to 31st December 1st January to 31st March Becomes eligible for funding 1st September following the child s 3 rd birthday (Autumn school term) 1st January following the child s 3 rd birthday (Spring school term) 1st April following the child s 3 rd birthday (Summer school term) 2.2 Two year olds Local authorities are required to secure early education places by offering 570 hours a year over no fewer than 38 weeks of the year for every eligible two year old in their area from the relevant date. Two year olds are eligible if their family claim one of the following: Income Support Income related Employment and Support Allowance Income-based Jobseekers Allowance Child Tax Credit and have an Annual income not over 16,190 The guaranteed element of State Pension Credit 4
5 Support through Part 6 of the Immigration and Asylum Act (1999) Working Tax Credit and have an Annual income not over 16,190 They are also eligible if the two year old: has a current Statement of Special Educational Needs or Disability or an Education, Health and Care Plan attracts Disability Living Allowance is looked after by the Local Authority is no longer looked after by the local authority as a result of an adoption order, a special guardianship order or a child arrangements order which specifies with whom the child lives The relevant eligibility birth dates are as follows: A two year old child born in the period 1st April to 31st August 1st September to 31st December 1st January to 31st March Becomes eligible for funding 1st September following the child s 2 nd birthday (Autumn school term) 1st January following the child s 2 nd birthday (Spring school term) 1st April following the child s 2 nd birthday (Summer school term) 2.3 For eligible two year olds who first take up their place part-way through the year, the number of hours should be adjusted to reflect the portion of the year remaining. 2.4 Local Authorities must ensure that two-year-olds who have met the eligibility criteria set out above in the paragraph above, continue to receive a place once they have taken it up even if the child ceases to meet these criteria at a later date. 5
6 3. Flexibility Outcome: children are able to take up their full entitlement to early education at times that best support their learning, and at times which fit with the needs of parents. 3.0 To secure flexible delivery, local authorities should: Fund providers to deliver early education places at times and in patterns that support parents to maximise the use of their child s place. Providers should be encouraged to offer flexible packages of early education and childcare, to support parents to maximise the use of their child s place, subject to the following standards: No session longer than 10 hours No session shorter than 2.5 hours Not before 7.00 am or after 7.00 pm Providers can offer the two, three and four year old entitlement over several model options, e.g. 38 weeks x 15 hours, or stretched offer over 48 weeks x 12 hours, or an agreed viable alternative pattern, where there is provider capacity and sufficient parental demand. 3.1 The Local Authority will support providers and parents to be aware of overall parental demand in an area, seeking to provide the maximum possible flexibility where demand exists beyond the minimum models referred to above. Flexibility must consider the impact of the educational experience and continuity of care for children, and within Walsall no more than two settings can be accessed at the same time. 3.2 Providers are required to inform the Local Authority of their flexible offer, in order for this information to be made public. This information forms part of the provider agreement. 3.3 The Local Authority and providers should ensure parents are aware that the entitlement to an early education and childcare place does not offer a guarantee of a place at any one provider or a particular pattern of provision. 3.4 Whilst every parent is entitled to access these models if they want them, they may be unable to access them at their provider of choice. This means not all providers will be expected to offer them. Indeed some providers will be unable to offer both models. Providers will not be expected to agree to all flexible requests from every individual parent. It is understood that changes to patterns of delivery to more flexible provision will need to be sustainable, and therefore demanded by a number of parents to be financially viable. 6
7 4. Funding early education and childcare places Outcome: Fair and transparent funding which supports a diverse range of providers to deliver early education places and encourages existing providers to expand and new providers to enter the childcare market. This diversity enables parents to choose a provider that best meets the needs of their child and family. 4.0 The School Finance (England) Regulations 2014 sets out how Local Authorities must operate their Early Years Single Funding Formula (EYSFF). The regulations require that a Local Authority must consult the Schools Forum about and decide upon the funding formula which informs the hourly rate paid to providers. Local Authorities abide by the Early Years Single Funding Formula which sets the rates to all types of providers. Details of this locally determined formula are available upon request. 4.1 An indicative budget allocation is calculated at the beginning of the financial year based on termly headcount data from the previous financial year i.e. lagged data. At the beginning of each term, except for childminders, 80% of the indicative hourly funding figure for that term will be paid, plus ⅓ of the Deprivation Supplement. Following receipt of actual headcount data each term, a comparison will be made between the hours used for that term s indicative allocation and the actual hours recorded on the headcount. Funding will then be reconciled to reflect any changes and may result in either additional funding, where actual provision is higher than was estimated, or reduced funding where provision was lower. It should be noted that where there is a need to be recover monies for an overpayment, settings can opt to either receive an invoice or for a deduction to be taken from their following term s indicative payment. The exception will be in the spring term when any final reconciliation will be made in March, prior to closure of the financial year, either as an additional payment or an invoice issued. Funding will be paid directly into providers bank accounts and these accounts must be in the name of the business. Funding cannot be paid to the bank accounts of private individuals. 4.2 Arrangements for childminders differ due to much smaller levels of provision and difficulties expressed by some in regard to returning funding to the local authority. It has been agreed to pay funding to childminders retrospectively at the end of each term once actual provision has been confirmed. 4.3 Each term, parents will be required to a Parent Declaration Form and sign this to form a contract with the provider, confirming the hours to be claimed for during the term. On the day of the headcount, providers are required to complete the headcount form, listing the children and hours to be claimed for. This must match the hours detailed on the Parent Declaration Form. These forms can be found here: Headcount is the information used to calculate payments. It is crucial for any funded child to be in the setting on headcount day. The indicative budget allocations will only be amended to reflect changes recorded on each term s headcount. There will be no adjustments to the term s funding as a result of children leaving or starting after the headcount date. 7
8 4.5 Providers will be able to claim up to three weeks of funding at the start of the Autumn term only for those children who are taking up a place in a maintained setting during this term. Forms will be sent out to collect this data and they must be completed and returned along with the standard headcount forms. 4.6 Time line of payment process for two, three and four year olds across the financial year: Date April 2016 Key actions Budget Statement sent to all providers detailing indicative budget allocations for the next financial year. 1 st payment 80% of indicative hourly funding for the Summer term plus ⅓ of deprivation supplement May 2016 Summer term headcount 19th May 2016 July 2016 Balance of indicative funding for summer term paid i.e. 20% plus the adjustment to funding following the reconciliation of estimated hours to actual September 2016 October 2016 December 2016 January 2017 March 2017 April The current funding rates are: 2 nd payment 80% of indicative hourly funding for the autumn term plus ⅓ of deprivation supplement. (Where a setting was over funded in the Summer term, the Autumn term payment will be reduced by the value of the over funding if this method of repayment was taken) Autumn term headcount 6 th October 2016 plus the collection of details of hours provided during transition weeks Balance of indicative funding for Autumn term i.e. 20% plus the adjustment to funding following the reconciliation of estimated hours to actual 3 rd payment 80% of indicative hourly funding for the spring term plus ⅓ of deprivation supplement. (Where over funding occurred in Autumn term, the Spring term payment will be reduced by the value of the over funding if this method of repayment was taken) Spring term headcount 15 th January 2017 Balance of indicative funding for Spring term i.e. 20% plus the adjustment to funding following the reconciliation of estimated hours to actual. Note: Invoices will be issued in all instances where over funding occurred in Spring term Budget Statement sent to all providers detailing indicative budget allocations for the next financial year Provider Two year olds Three and four year olds Childminder Day nursery Playgroup Independent school
9 5. Quality Outcome: All children are able to take up their entitlement to funded early education in a high quality setting. Evidence shows that higher quality provision has greater developmental benefits for children, particularly for the most disadvantaged children. 5.0 All children should be able to take up their free early education entitlement in a high quality setting. Evidence shows that higher quality provision has greater developmental benefits for children, particularly for the children deemed to be in greatest need. 5.1 The Local Authority will rely solely on the Ofsted inspection judgement or the Childminder Agency inspection judgement as the benchmark of provider quality. The Local Authority will not undertake their own assessment of quality to secure free early education and childcare funding. 5.2 Providers must comply with the Early Years Foundation Stage Statutory Framework (2014). The local authority may suspend funding with immediate effect if a provider is under investigation by Ofsted for matters that include the safeguarding and welfare of children or there are concerns about extremism. A decision will be made if funding will be reinstated based on the findings of that investigation. 5.3 Providers must be registered with Ofsted or must provide the local authority with evidence that they are exempt from the requirement to Ofsted register. Ofsted exempt settings will need to inform the Families Information Service of their operation. 5.5 Providers who are rated Outstanding, Good or yet to be inspected by Ofsted can provide free places for eligible two year olds and three and four year olds. Newly registered providers will be able to offer the free early education entitlement before their first full Ofsted inspection. 5.6 Providers judged by Ofsted to Require Improvement will only be funded to provide free places for eligible two year olds should it be necessary to ensure sufficiency of early education and childcare places, but can provide places for three and four year olds. The Local Authority will review the Ofsted inspection report to ensure the provider meets the required quality standards for eligible two year olds. The Local Authority will take into account the continuity of care for children who are already receiving their funded entitlement. 5.7 Providers who are rated Inadequate will not be eligible to offer the free early education entitlement. The Local Authority will withdraw funding as soon as is practicable and with regard to the impact of such action upon the children and families. The Early Years Quality Improvement team will support settings to improve quality and address issues raised by inspection. The provider is responsible for ensuring that parents are informed of the outcome of the inspection. 5.8 The Local Authority may continue to fund two, three and four year olds who have been claimed for prior to the Inadequate/Not Met grade and will inform the provider by letter of funding arrangements after receiving notice of the inspection outcome. 5.9 A provider with two consecutive Inadequate/ Not Met ratings from Ofsted will have their funding withdrawn with immediate effect. 9
10 5.10 The Local Authority will withdraw funding as soon as reasonably practicable and with regard to the impact of such action upon children and families. The Early Years Quality Improvement team will support settings to improve quality and address issues raised by the inspection The Local Authority will accept evidence such as an Ofsted report which confirms the provider is no longer graded as Inadequate/Not Met and funding will be reinstated on the return of the signed declaration of this agreement and details of the date of the new inspection outcome. Funding will be reinstated from this date The Local Authority will consider information from Ofsted about a provider or childminder agency before agreeing for funding to commence at a new registration. This includes review of the history of a provider, ownership or at a particular address. 10
11 6. Early Years Pupil Premium 6.0 The Early Years Pupil Premium was introduced in April 2015 to provide additional funding for early years settings to improve the education they provide for disadvantaged three and four year olds. The aim is to help settings to close the gap between children from disadvantaged backgrounds and their peers because research has shown that high quality early education and childcare can have a lasting impact on children s attainment and behaviour, particularly for the most disadvantaged. 6.1 Children are eligible if their parents are in receipt of any of these benefits: Income Support Income-based Jobseekers Allowance Income-related Employment and Support Allowance Support under Part VI of the Immigration and Asylum Act 1999 Guaranteed element of State Pension Credit Child Tax Credit (provided families are not also entitled to Working Tax Credit and have an annual gross income of no more than 16,190) Working Tax Credit run-on (paid for 4 weeks after families stop qualifying for Working Tax Credit) Universal Credit In addition, a child will be eligible if they have been looked after by the local authority for at least one day or have been adopted from care or they have left care under a special guardianship order or residence order. 6.2 The revised application form should be used for any new families who are accessing a nursery place who you think will be eligible on income grounds and identify children who have been looked after or adopted. The form is available at A spreadsheet will be sent to complete as part of the headcount process. 6.4 The Early Years Pupil Premium for looked after children is managed by the Virtual School. In each setting there should be a designated teacher/practitioner who leads on the completing of a comprehensive Personal Education Plan (PEP). In order for the funding to be released to the setting the PEP must demonstrate how it will be used to narrow the gap between the looked after child and their peers. Settings should contact the Virtual School for any queries regarding looked after children on
12 7. Provider agreement Each provider will receive a separate copy of this form to complete and return Name of Provider Address Postcode Telephone Number Type of provider Private Voluntary Independent Childminder URN Name of SENCO Registered Owner s Name (name on Ofsted certificate) How are the free entitlement hours delivered? Please tick one in each option Places available for funded children in these age groups - please tick all that apply Either Term time only or All year round provision Either 5 hours x 3 days Or 3 hours x 5 days Or Variable hours 2 year olds 3 year olds 4 year olds I agree to the terms and conditions set out the Provider Guidance April March 2017 Signature: Name - please print: Date: 12
13 8. Information for parents and carers Outcome: Parents have a choice of taking up their child s early education place in a variety of settings and are provided with comprehensive information about their child s entitlement to an early education place and childcare options in their area 8.0 The Local Authority will provide parents with information about their child s entitlement to free early years education. Information regarding the free entitlement and the providers who can offer places is available from Walsall Families Information Service: Parents may ring, mail or visit the Walsall Families Information Service at the Quest for information and advice. 8.1 The Local Authority will ensure that parents/carers are made aware: The entitlement to free early education and childcare for two, three and four year olds Reception year provision is usually planned and delivered over 25 hours per week and every child in Walsall is entitled to a free place in a Reception class at a state funded school for 25 hours per week in the September following their child s fourth birthday If parents choose not to take up a place in a state-funded school Reception class they are entitled to continue to take up their free 15 hour early education place at another provider until their child reaches compulsory school age This is provided under the same requirements as the free early education place in nursery i.e. it is only funded for 15 hours per week and should they wish to access 15 hours only then this option should be clearly offered and available 8.2 Providers must ensure that parents can see that they are receiving the 15 hours for free on invoices or bills. Providers must not deduct the payment they receive from the Local Authority from a parent s bill: it is not a discount. Providers cannot require parents to pay deposits or registration fees as a condition of accessing the free place. The Local Authority may require providers to submit evidence that they are complying with these requirements. 8.3 Providers must have a written complaints policy and ensure parents are aware of their right to complain to Ofsted. 8.4 Local authorities should not intervene in providers private businesses outside of a child s early education place. The local authority has an agreement with the provider regarding the provision of the free entitlement and can only investigate where there is a potential breach of these terms and conditions. 8.5 Parents may have an agreement with a provider regarding the provision of a place for their child. It is the parents responsibility to ensure that they are happy with the terms and conditions before signing any agreement; the Local Authority will not be involved with disputes regarding any payments and contracts outside of the free entitlement. 8.6 If a parent has a concern regarding how a provider is delivering the early education and childcare place they must seek to resolve this directly with provider in the first instance. 8.7 If their concern is not resolved to their satisfaction the parent can choose to escalate to a formal complaint with Walsall M.B.C. 13
14 8.8 Parents must complete the complaints form on the Walsall Council website An investigating officer will be appointed and will request to view any relevant information or paperwork related to the parent s complaint. If the review concludes that there has been a breach of the terms and conditions then the provider will be notified in writing of the breach and given a clear action plan with timescales. Parents will be notified of the outcome. If the provider fails to comply with the required actions within the timescale given they will be formally notified of their removal from the Directory of Providers. 14
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