Decision Maker: Alison Elliott (Director - Commissioning)
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To approve the proposal to reduce payments
made for early years entitlement for 2, 3- & 4-year olds to
settings and childminders closed during the coronavirus pandemic in
order to create a pool of funds to incentivise settings to remain
open to children of key workers, to children with a social worker
or, education health & care plan (EHCP.)
This decision around funding of early years
settings would in other circumstances be taken in consultation with
Cabinet and following consultation with the early years reference
group and Schools Forum. However, in circumstances where
councillors are unable to meet to expedite their functions in a
timely manner during the COVID-19 pandemic, this decision is being
taken in accordance with the power referred to in paragraph 1 above
in consultation with the early years reference group. This decision
will be reported to the next meeting of the Schools Forum and
Cabinet.
Providers operate with a mix of income coming from free entitlement
(2, 3 & 4-year-old funding from the dedicated schools grant)
and private income from parents. The Chancellor has set out a
package of temporary, timely and targeted measures to support
public services, people and businesses through this period of
disruption caused by COVID-19.
In addition to this, the local authority has received the following
specific advice:
‘The government would continue to pay for free early years
entitlement places for 2, 3 and 4 year olds even if settings were
closed or children were not able to attend.
We expect local authorities should follow this position and
continue early entitlements funding for all childminders, schools
and nurseries.’
This offer creates a perverse incentive for childcare providers to
close at a time when we need some to remain open for our key
workers, and most critical workers. The staff who are working in
open settings are at greater risk of coming into contact with
Covid-19 as they are meeting individuals who may have been exposed
to Covid-19.
I confirm that in making this decision I have considered the
following in line with Wiltshire Council’s
Constitution:
Key decision requirements: Y
Views of relevant cabinet member(s), committee chairman, area
board(s): Y
Consideration of the area boards and delegated decision checklist
for officers on the issue of when and how to involve local
councillors and area boards in decisions about local
services:Y
Implication of any council policy, initiative, strategy or
procedure: Yes – to adhere to national funding guidance,
please refer to legal and finance advice below
Consultation in accordance with requirements and expectations of
consultation with the public: Yes – consultation with the
Early Years Reference Group on 8th April 2020
Range of options available:Yes – it is vital that should the
local environment change (for example more closures) or that if
national guidance is updated, that the decision be revisited. It is
therefore under constant review via the Schools & Early Years
Closure Cell during the pandemic response period when settings are
closed to all children.
Staffing, financial and legal implications:
Staffing settings can take advantage of the Chancellor’s
national support, nurseries can claim business relief,
childminders, self employment relief in addition to the early years
entitlement funding - this proposal negates an element of double
funding which, the Government have advised local authorities to
adopt in the Supplier Relief Procurement Policy Notice (PPN.) Thus,
staff are protected. There are no Council staff implications.
Financial advice from the Council’s Head of Finance, Children
& Education is that the pressure on the public purse at
national level will be overwhelming and every opportunity should be
taken to
a) Protect the public purse from “double funding”
b) Provide financial incentives / rewards from monies held back
from closed settings within spirit of the overall dedicated schools
grant (DSG) operational funding guidance
Legal advice is that it is important to remember that the annual
funding guidance generally followed was written prior to the
pandemic and as such is not necessarily fit for purpose at this
time.
In the case of provider challenge it would be around passporting
95% of the funding and varying the hourly rate paid to providers.
In response to this the Council has
a) Consulted with the EY reference group who supported the
proposal
b) Guaranteed an 80% payment to closed settings based on the same
hourly rate but funding 80% of the estimates provided for the
Summer Term
c) Guaranteed a 100% payment to open settings for the Summer
Term
d) Retained the 20% top slice for redistribution to open settings
as an incentive / reward calculated on £100 per child, per
week basis.
e) Stated that the proposal is subject to change where internal or
external factors change.
The Council’s overriding duty is to provide childcare to key
workers and protect the most vulnerable children in
Wiltshire.
The eminently sensible approach is reasonable.
Risk assessment and equality implications: Y. Legal are supportive
of this as a pragmatic solution to our duty of sufficiency and
advise that we have mitigated our risks as far as possible through
the points in the above legal section.
Involvement of statutory officers and/or directors: Y
Regional or national guidance from other bodies:Y
The council’s constitution: Y
This contract is suitable for execution under the e-signature
process:Y
The other model considered was a payment per
open setting opposed to a payment per child in any open setting
however, this did not recompense providers in a commensurate way
and so it was rejected.
Other local authorities have continued to pay closed settings at
100% numbers and have funded their incentive schemes based on the
assumption that the public purse COVID19 fund will pick up the
additional cost. There are several reasons we rejected this
option;
a. The S151 estimate of anticipated COVID19 driven cost pressures
and income losses are significant for Wiltshire
b. There is no information from central government that this fund
will cover dedicated schools grant expenditure.
c. The incentive funding coming from within a self-financing pool
where providers can benefit from two streams of funding being
applicable was acceptable to senior leadership and the early years
reference group.
Conflict of Interest: Not applicable
Background: Pursuant to paragraph 4 of Part 3 Section D, the Directors of Wiltshire Council are is empowered to take all necessary decisions in cases of emergency. This funding decision is being taken by Helen Jones using these powers in circumstances where the Director concerned believes that there is a risk of damage to property, a threat to the health or wellbeing of an individual and/or that the interests of the Council may be compromised if this decision is not otherwise taken.
Contact: Helen Jones, Director - Procurement and Commissioning Email: helen.jones@wiltshire.gov.uk.
Publication date: 02/06/2020
Date of decision: 17/04/2020
Accompanying Documents: