Autumn Spending Review
National hourly funding rates of £4.88 for 3 to 4 year olds (including EYPP), £5.39 for two year olds and narrower eligibility criteria for the 30 hour offer were among the key announcements in the Government’s Spending Review this week. Ceeda forecasts suggest these increases, whilst welcome, will leave significant funding gaps.
Much is still unknown about how the announced national average rates, inclusive of funds to be retained by Local Authorities, will translate into monies paid direct to childcare providers. Consultation will commence in the New Year on what a National Funding Formula might look like, with plans to introduce an Early Years National Funding Formula from April 2017.
Dr Jo Verrill, Managing Director at Ceeda says:
“We do not recognise the scope for efficiency savings of 15% suggested by the Government funding review and will be looking at the detail of DfE cost modelling methodologies to evaluate the assumptions made. We look forward to sharing more detailed thoughts on the announcements shortly. We welcome the forthcoming DfE consultation on a funding formula for early years; it is essential that funding models reflect the reality of delivery on the ground and support high quality early years provision which can close development gaps and give every child the best start in life.”