Agenda item

The report of Marie Taylor (Head of Finance – Children and Education) seeks to update Schools Forum on issues relating to the early years block for 2025-26 and the decisions that will need to be made as part of the budget setting process for 2025-26.

Marie Taylor, Head of Finance – Children & Education, presented the report and updated the Schools Forum on the issues relating to the Early Years Block (EYB) for 2025-26 and the decisions that would need to be made as part of the budget setting process. The following was then highlighted:

• Paragraphs 3 to 13 detailed the main considerations for Members and noting that in the 2021 Spending Review and Spring budget of 2023, the Government had launched a largescale Childcare Expansion which included increased funding rates and extensions to the age entitlements for parents of eligible children, the full year impact of these now being complete for the 2025-26 financial year.
• It was further explained that to reflect the changing nature of anticipated take up by parents and carers, the Department for Education (DfE) had changed their funding methodology, with Paragraph 4 including further detail. As such, the provisional EYB settlement for Wiltshire was £76.914m with Paragraph 6 showing a breakdown of the different funding elements.
• Paragraph 7 outlined the changes in addition to the funding changes as a result of the ‘Early Years Entitlements: Local Authority Funding Operational Guide 2025-26’ as published by the DfE in December 2024.
• The increased minimum pass-through requirement was explained in line with Paragraphs 8 to 10 and it was noted that Appendix 2 detailed the calculations of compliance.
• Members were then assured that Wiltshire was fully compliant with the data set for funding rates, the requirements for the formula and SEN Inclusion Fund, and that the new expectation would have no impact, with the criterion in place for setting a local formula listed under Paragraph 11.
• It was highlighted that the Early Years Reference Group (EYRG) had met on 9 January 2025, with the funding options considered as attached as Appendix 1 and further details under Paragraphs 14 to 19, including the proposed rates and budget for the 2025-26 financial year.
• Paragraphs 20 to 22 referred to the Special Educational Needs Inclusion Fund (SENIF) of which £0.200m had been earmarked to create a preventative service to support inclusivity in the early years and Primary phase. Furthermore, as part of the preventative inclusive agenda and the recovery actions for the High Need Block (HNB) budget, an additional sum of £0.180m had been ringfenced from the HNB to support children with an Education Health Care Plan (EHCP) in the early years sector.
• Finally, officers briefly detailed the proposals for the Disability Access Fund and Early Years Pupil Premium as per Paragraphs 23 to 31.

There being no questions or comments, it was then:

Resolved:

The Schools Forum:

1)    Noted the update on the Early Years Block and agreed to the Local Authority preferred proposal:

Local Authority Preferred Proposal

a)    To set the following basis hour provider rates for entitled children:

b)    That the Central Team budget be set at £0.879m.

c)    That the Special Educational Needs Inclusion Fund budget be set at £1.705m (From the Early Years Block)

d)    Deprivation and rurality increased to reflect current spending levels at £250,000.

e)    All other funding factors remain at current 2024-25 levels or funded levels.

f)     Note that the Early Years Block is to fund the Early Years Inclusion Fund at the current level and the High Needs Block to allocated £0.180m to increase support available in line with the SEN strategy around prevention.

2)    Agreed up to £938 per child for 2025-26 from the Disability Access Fund, with the Local Authority to passport the funding.

3)    Agreed to the uplift in funding for Pupil Premium to be set at £1.00 per hour, with the Local Authority to passport the funding.

4)    Agreed to maintaining at least 96% of funding to be passed through to providers.

(The decisions number 1 – 4 above, were made later in the meeting under Agenda Item 10)