RSS web feeds 
Share 
Print 
Email 
Save Early years funding reform
In June 2007 the Government announced that LAs will be required to use a single local formula for funding Early Years provision in the maintained and PVI sectors from April 2010. LAs are also encouraged to introduce this formula from April 2009 wherever possible.
The single local formula is intended to support the extension of the free entitlement for 3-and 4-year-olds, and to address inconsistencies in how the offer is currently funded across the maintained and PVI sectors. This will help to ensure that decisions about funding for maintained and PVI providers are transparent and based on the same factors. While funding levels and funding methodologies do not have to be equal for all providers, they must be equitable and any differences must be justifiable and demonstrable.
Interim guidance, developed from the experiences and learning of the six pilot authorities working with the DCSF since November 2007, is now available below to help all LAs begin to develop their own single formula. The six original pilot authorities are: Hertfordshire, Somerset, Leeds, Rochdale, Croydon and Southampton. These have since been joined by Derby, Greenwich, North Somerset, North Yorkshire and Shropshire. This project is described in more detail below.
Guidance
Implementation of a single funding formula for Early Years: Interim guidance
Further information and guidance is available in School and Early Years funding arrangements 2008–11: Explanatory note for local authorities, available on Teachernet.
Learning and support resources
This is an updated section providing LAs with a package of web-based resources to help them implement both the flexible extension to the free entitlement to Early Years provision and the Single Funding Formula. It builds on support already available and captures learning from the Pathfinder and pilot authorities and includes interim guidance and toolkits. It is a work in progress. Further documents, case studies and learning will be added as they become available.
The Formula Development Project: Pilot authorities
Hedra consultancy worked with the six original LAs as part of the Formula Development Project over the first half of 2008. It used its work to inform the interim guidance to LAs that was published in July 2008. These LAs accelerated progress to implement a single formula from April 2009 to provide good-practice guidance for other LAs.
All except two LAs implemented their formulas in April 2009. A table showing the characteristics of the original six pilot authorities is available to download.
We are keen to capture further learning from our pilot authorities as they implement their formulas to ensure that best practice is captured and any issues can be addressed quickly. To this end, we have appointed independent consultants Mouchel to work with the pilots to capture learning and evaluate the pilots. This work will be used to inform further updates to LAs and the final guidance, to be published in summer 2009.
Key messages
The strongest messages coming out of the pilot authorities are that developing a single formula is:
- It is challenging, takes time and timescales are tight.
- Ensure this project is jointly led by Early Years and school finance colleagues so that a cohesive approach is developed.
- Make sure you consider your entire Early Years market as a whole. It is absolutely vital that your cost survey must cover all your sectors, including the maintained. While initially it was thought that LAs would already have a good understanding of their maintained sector’s costs, those pilots that have considered the two sectors separately have hit huge challenges. The result has been that they have not been able to implement their single funding formula this year.
- How important it is to engage all stakeholders (maintained and PVI) in the process, and to do so early. Pilots report that engaging stakeholders as early as possible has particularly helped with the design of the cost survey and the response rate.
- Do not work in silos. Considering the sectors separately will mean that you will not be able to implement your formula.
DCSF is expecting real change in 2010. It is therefore critical that all LAs look to learn from the pilot authorities’ experience so they do not face similar challenges.
A number of resources to help LAs in their progress towards a single funding formula have been developed and can be accessed from the ‘Learning and support resources’ section.
Associated documents
Early Years: A table showing the characteristics of the six pilot LAs
Download the contents of this page:
as a Word Document
Last updated on 21/05/2009
