Agenda item

To examine the outcome of the review of the operation of the Early Years Single Funding Formula (EYSFF) by the Early Years Reference Group, and consider their recommendation of a change to the current basic hourly rates paid.

The Head of Business and Commercial Services, DCE outlined his report.

The EYSFF was introduced in Wiltshire from 1 April 2010.  The formula provided for childcare providers to receive a payment for the provision of free entitlement childcare based upon a sum for each hour delivered plus supplements (if applicable) for the inclusion of children from deprived homes and for settings located in rural areas

The reference group undertook a survey of the EYSFF in autumn 2010.  On analysing the responses, the group noted that the formula had been in operation for only six months and considered that unless there was an overwhelming rationale for change the present arrangements should continue to avoid any potential confusion which could result from changes to arrangements which were only just beginning to be understood.  The group agreed to recommend that two detailed amendments be made to the scheme and these were approved by the Schools Forum at its meeting on 3 December 2010.

Members of the council’s Early Years’ Team, and members of the Early Years Reference Group have received many comments relating to the complexity of the EYSFF and difficulties providers have in calculating the income they will receive.  Considerable work has been done to advise and support settings but many such comments continue to be received.

In light of this a consultation was launched, and results showed that 30% of providers were satisfied with the status quo, whilst the remaining 70% were split between options for change.

It was also noted that Childminders received a rate which seemed excessively high relative to the prices on the open market

The Government allowed local determination of the EYSSF model it was explained, and the recommendation of the Early Years Reference group was to move to a model with only one rate per type of provider. This proposition would have an adverse impact on smaller settings, but it was noted that the previous years’ changes and the extension of free entitlement for two year olds would help cushion the impact of any negative change.

No inflationary assumptions were assumed in the model.

It was explained that the differential between the proposed hourly pay rates for maintained providers and PVI settings arose due to the obligation upon maintained schools to employ qualified teachers on national pay scales.

Regarding potential further changes to the EYSSF in 2013, officers expected no major changes other than further simplification, but a proposal for a 0.5% reduction across all DSG funded budgets would be considered later on the agenda for this meeting within the 2012/13 budget report.

The Head of Business and Commercial Services confirmed that there were no transitional arrangements in place for the arrangements proposed.

Resolved:

That as recommended by the Early Years Reference Group, the EYSFF be amended to provide for a single hourly rate for each type of provider irrespective of size and to reduce the payment to accredited childminders with the savings being reallocated to support the rate for private, voluntary and independent settings to offset the loss which smaller settings will suffer. Thus the basic hourly rate payment (at 2011-12 prices) will be as shown below:

Early Years Single Funding Formula – Basic Hourly Rates

(Supplements will apply as applicable)