Early Years Revenue Funding Guidance 2016/17 Version 1.0 March Early Years Revenue Funding Guidance Financial Year
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1 Early Years Revenue Funding Guidance Financial Year 1
2 Contents Dedicated Schools Grant Page 3 Early Years Single Funding Formula Page 4 Funding for Two Year-Olds Page 5 Early Years Pupil Premium Page 6 Contact Details Page 7 2
3 Dedicated Schools Grant (DSG) On the 17 December 2015 the Department for Education (DfE) published the Dedicated Schools Grant (DSG) Funding Settlement for 2016/17. Full details can be found on the DfE website at the following link: As in previous years since the introduction of the National Funding Reforms, the DSG for is calculated on the basis of 3 notional blocks: Early Years Block calculated based on all nursery age pupils (3 and 4 year olds) at 3,813 per pupil plus 2 year olds at 5.05 per hour and Early Years Pupil Premium at 0.53 per hour. Schools Block calculated based on all pre-16 school age pupils at 4,257 per pupil (adjusted for Carbon Reduction Commitment) High Needs Block based on historic spend on high needs pupils in school and FE Colleges. The estimated total DSG allocated to Cambridgeshire is 418,566,732. The Early Years Block element of this is: Main EY block funding 21,920,420 Indicative Early Years Pupil Premium 353,939 Two-year old Funding 2,940,868 Total Estimated Early Years Block 25,215,226 The council will receive 5.05 per hour for two-year old provision, which will be directly passed on to providers. Early Years Single Funding Formula (EYSFF) Other than an update to the dataset used to calculate the deprivation supplement detailed below, the EYSFF has not changed for 2016/17. As such, the formula factors will be: 1. Base Rate This is a basic hourly rate that is paid to providers on a per child basis, based on actual hours of provision. This factor is applied to all providers, though different types of provision attract different base rates, which are: a. Maintained Nursery Schools per hour b. Maintained Nursery Classes per hour c. Full day care and child-minders per hour d. Pre-schools/Extended pre-schools per hour 2. Flexibility This factor targets funding towards settings that provide a greater degree of flexibility in the hours of attendance that are available. There are three bands of flexibility, two of which will receive a supplement. Qualifying settings will have the supplement applied to their base rate. The bands are: a. High 08:00 to 18:00 opening or similar; clearly advertised flexible drop-off and pickup times and range of hours available each day (3-8 minimum) 25p per hour per child 3
4 b. Low Sessional opening; clearly advertised flexible drop-off and pickup times and range of hours available each day (2-6) OR 08:00 to 18:00 opening times or similar; fixed or limited drop-off and pick-up times 10p per hour per child c. None Sessional opening; fixed drop-off and pick-up times (2 or 3) No supplement This factor is not available for nursery schools. 3. Deprivation - This provides additional funding to settings on a per child basis to children living in a postcode deemed to be deprived according to the Income Deprivation Affecting Children Index (IDACI), with a scaled amount provided for eligible children based of one of four bands. An hourly rate supplement will be provided for each eligible child as has been the case for all providers since September The amounts will be: High (10%) per hour per child Medium (20%) per hour per child Low (30%) per hour per child Low (40%) per hour per child Please note: The IDACI index was updated by the government in September 2015 and as a consequence the rankings of some postcodes will have changed meaning some providers will see more of their children qualify for the supplement whilst others will see less. It has been agreed with the Early Years Provider Reference Group that the Summer 2016 payment will utilise the 2010 rankings whilst the 2015 rankings will be used from Autumn term 2016 onwards. This delay is to ensure all providers are sufficiently aware of the update. A postcode checker for IDACI eligibility for both the 2010 and 2015 datasets can be accessed via the link below: The ranking for each dataset is as follows: Using 2010 Data (Summer Term): Rank Residence of child IDACI Rank Value per hour 1 Highest 10% per IDACI Next highest 10% per IDACI Third highest 10% per IDACI Fourth highest 10% per IDACI Remaining 60% least deprived
5 Using 2015 Data (Autumn & Spring Term): Rank Residence of child IDACI Rank Value per hour 1 Highest 10% per IDACI Next highest 10% per IDACI Third highest 10% per IDACI Fourth highest 10% per IDACI Remaining 60% least deprived Leadership and SEN This factor applies only to maintained nursery schools, and provides funding to cover the additional costs that nursery school face in employing a head-teacher, and to the reflect the need for schools to contribute up to 3000 of costs for high needs pupils. This is a lump sum of 77,887 per school. 5. Quality This factor applies only to maintained nursery schools, and provides funding to reflect the additional responsibilities of nursery schools in promoting improved services, outside of their setting, in a local early years context. This is a lump sum of 24,000 per school. 6. English as an Additional Language This factor applies only to maintained nursery schools. It allocates funding to support the teaching of students whose first language is not English per EAL pupil. 7. National Non-Domestic Rates This factor applies to maintained nursery schools only. It allocates funding to bring nursery schools into line with other schools in which NNDR are funded on the principle that the circumstances of buildings (deemed as occupied by the council) should not alter the amount of funding available for teaching and learning. NNDR for maintained nursery classes will be covered as part of the school to which they are attached. The funding will be at actual cost. Funding for Two year-olds Two year-olds will be entitled to 15 hours of free childcare per week provided they are eligible. The child must have a parent in receipt of one of the following benefits: Or if: Working Tax Credit provided your annual income (as assessed by HM Revenue & Customs) does not exceed 16,190 Income Support Income Based Job Seekers Allowance Income-related Employment and Support Allowance Support under part VI of the Immigration & Asylum Act 1999 Child Tax Credit provided your annual income (as assessed by HM Revenue & Customs) does not exceed 16,190 Guarantee element of State Pension Credit they have been adopted from local authority or international care they have left care through a special guardianship or residence order they are in receipt of Disability Living Allowance 5
6 they are supported through the Early Support Service and have complex needs requiring on-going specialist support they have a statement of Special Educational Needs or an Education, Health and Care (EHC) Plan Funding will be provided to providers as an hourly rate of 5.05 per child up to fifteen hours, which is the same rate of funding that is received by the local authority. There is no formula or supplements for two year-olds. Early Years Pupil Premium (EYPP) From January 2015 settings who have children that take up any of the free entitlement for three and four yearolds who meet the eligibility criteria will be entitled to receive the EYPP. Children will be eligible if they are in receipt of state-funded education, and if one of their parents is in receipt of any of the following benefits: Income Support Income-based Jobseekers Allowance Income-related Employment and Support Allowance Support under Part VI of the Immigration and Asylum Act 1999 The guaranteed element of State Pension Credit Child Tax Credit (provided you re 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 you stop qualifying for Working Tax Credit Or if the child has been: looked after by the local authority for at least one day have been adopted from care have left care through special guardianship; and subject to a child arrangement order setting out with whom the child is to live (formerly known as residence orders They are similar to the criteria for Free School Meals, with additional criteria providing the EYPP for children who have been looked after by the local authority. The EYPP is a supplement of 0.53 per hour per child, up to a maximum of fifteen hours per week (approximately 300 per year for a full-time place). This will be paid to providers on the basis of actual hours, and will follow a child where they change or split providers. Providers will be free to determine how to spend the funds, but the expectation is that they will be used to improve the education of the identified disadvantaged children. Details about the application process can be found here: 353/support_for_early_years_and_childcare_providers/10 Contact Details Maintained nursery schools and classes should direct funding queries to the Schools Funding Team, at schools.funding@cambridgeshire.gov.uk PVI provider should direct queries to the Early Years Funding Team at NEF@cambridgeshire.gov.uk 6
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