Agenda item

The report of Marie Taylor (Interim Head of Finance) seeks to update the Forum on issues related to the early years block for 2019-20 and the decisions that will need to be made as part of the budget setting process for 2019-20.  The operational guidance for the early years block confirms that Schools Forums must be consulted on changes to local early years funding formulae, including agreeing central spend, although the final decision rests with the local authority.

Marie Taylor (Interim Head of Finance) referred to revised report which sought to update the Forum on issues related to the Early Years block for 2019/20 and the decisions that would need to be made as part of the budget setting process.  Marie highlighted the following:

·       The operational guidance for the Early Years block confirms that Schools Forum must be consulted on changes to local early year funding formulae, including agreeing central spend, although the final decision rests with the local authority.  Officers wished to seek the views of Forum members and for them to be happy with the decisions that would need to be made.  The key points of the guidance were explained to the Forum;

·       The hourly rate for 2 year olds in Wiltshire has been confirmed for £5.32 for 2019/20;

·       The DSG initial allocation for Early Years remains at £4.30ph for the 3 and 4 year old entitlements and the current rates for providers in Wiltshire (agreed by Schools Forum – January 2018) is £4.16ph. An increase to £4.18ph was indicated last year and this increase was supported by the Local Authority and is based upon spend on supplements and historical take up rates;

·       Considering the High Needs block funding pressures, it is unlikely that Schools Forum will be able to allocate any High Needs block funding to support Early Years expenditure and with this in mind, Officers are recommending that the High Needs block contribution is withdrawn and the total budget is funded from the Early Years block;

·       The Early Years Reference Group met on 11 January 2019 and requested that detailed modelling of the additional funding level scenarios be drawn up and these are attached as Appendix 1 to the revised report.  Appendix 2 shows the calculations of compliance with the % pass through – all scenarios are compliant; and

·       After consideration of the scenarios, the Local Authority confirm that they could support an hourly rate of £4.20ph but would not be able to support an increase beyond that as the financial risks cannot be mitigated.

An Early Years representative member made the following points:

·       Early Years providers are really struggling – there has been an increase in business rates, providers haven’t received any “extras” like schools have, e.g. funding to help with salary and pension increases and Little Extras funding;

·       Last year when we wanted rate to be £4.18ph we were told “no, you will get a deficit”.  What has actually happened is that we have an underspend – we would like our underspends to be ringfenced for Early Years;

·       At a rate of £4.18/£4.20ph many providers cannot afford to pay their way and this is affecting sufficiency of providers.

Marie Taylor responded that the Local Authority felt that £4.20 was a fair offer and was double the rise that was received in the last financial year. 

Two proposals were being put forward for consideration, which were either setting the rate at £4.18ph (Local Authority preferred proposal) or £4.20ph and in both options, it was proposed that the Early Years block fully fund the Early Years Inclusion Fund.  These decisions would be taken later in the meeting once all reports had been considered.

Resolved:

That Schools Forum note the report and make the required decisions to the schools delegated budget for 2019/20 later in the meeting when all information had been received.