Agenda item

To receive a report containing an update on Early Years expenditure.

Coral Miller presented the report which was set out in agenda pages 23-24.  Coral Miller informed that the same hourly rate was paid to all providers of Early Years.  Wokingham had in 2017/18 passported 96% of the funding on to their providers, and from 2018/19 onwards all local authorities would be required to passport at least 95%.

Coral explained that this pass-through requirement ensured that the vast majority of government funding reached providers so that they could deliver the free entitlements which had been recently introduced.

Coral stated that the 95% included the following:

·           Base rate funding for all providers;

·           Supplements for all providers (excluding deprivation funding);

·           Lump sum funding for Maintained Nursery Supplement (MNS);

·           The top-up grant element of Special Educational Needs (SEN) inclusion funds paid to providers; and

·           Contingencies funding

Coral Miller stated that the contingency of £229,000 had not changed for several years and perhaps should be referred to as a Providers Reserve Fund.  The Department for Education (DfE) recommended the Council to hold an allocation of funds for future growth in numbers.  This fund represented a provision for growth of 93 children a year at £2,462 per year (15 hours for 38 weeks of the year at an average hourly rate of £4.32).

Coral Miller explained that the funding for each Early Year’s provider was based on three censuses, therefore the funding was adjusted three times a year to reflect any changes in provider numbers as per each census.  The final budget was given in July.

In response to a question Coral Miller stated that it was not yet known what the take up of the free entitlement was.

Coral Miller informed that if there was any underspend in the contingencies, this was passed back to the providers.  In response to a question Coral stated that if there was an overspend, this would be carried forward and the hourly rates would be revised.

During the discussion of the item the following comments were made:

·           Mary Parker stated that parents had not been sufficiently aware of their entitlement of additional free hours of childcare last year, and the DfE website kept crashing when people tried to use it.  Therefore, she believed that there would be a significant increase in the take up going forward;

·           Jane Winterbone was of the opinion that Wokingham’s take up was satisfactory but she also expected it to increase;

·           Gail Prewett stated that if the hourly rate was reduced Wokingham would lose providers or providers would opt out of the scheme and not offer 30 hours.  She stated that some providers were already having difficulties and operating at a loss;

·           Paul Miller acknowledged that Early years were likely to face significant pressures in 2018/19 when the take up increases;

·           Gail Prewett pointed out that with the number of new houses being built in the Borough, there would be a significant growth in demand which would add to the pressure;

·           Coral Miller pointed out that there had been an increase in the hourly rate;

·           Mary Parker stated that it was the first time that Wokingham Early Years budget had been top sliced so in real terms what was gained in one way was taken out by the top slicing; and

·           Jane Winterbone explained that the service was looking very carefully at all the functions related to Early Years top slice, including holding a 0.9 vacancy and covering the loss of the Head of Early Years by line managing that area herself.

Paul Miller asked that a report containing information about the review of statutory duties in Early Years and future pressures be brought to the next meeting for discussion and analysis.

Schools Forum were in agreement that it made sense to change the name of this pot from Early Years’ Contingency to Providers Reserve Fund.

RESOLVED That:

1)     A report containing an assessment of Early Years current situation be submitted to the next meeting of Schools Forum;

2)     Going forward the Early Years’ Contingency Fund be referred to as Providers Reserve Fund;

3)     The report be noted.