EARLY YEARS PROVISION

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EARLY YEARS PROVISION DEVELOPING THE FLEXIBLE
ENTITLEMENT AND MOVING TOWARDS A SINGLE FORMULA
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The DCSFs vision what parents and children can
expect by 2010

• 10 Year Childcare Strategy
• A Sure Start Childrens Centre in every community
  
• Extended services through every school
• Affordable, accessible childcare available for
  all
• 15 hours of free, flexible early learning and
  care for all 3 and 4 year olds
• Single funding Formula

• Better outcomes for children
• Breaking cycles of deprivation and raising
  standards
• Choice and flexibility for parents

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Take up of the entitlement
What the DCSF is saying .. past take up of the
entitlement

• Overall nationally, 96 3 year-olds and
  virtually all 4 year olds take up some free
  provision
• But
• 44 dont take it in full
• And take up of any provision is lowest in
• Low income families
• Workless families
• BME Groups
• Families in disadvantaged areas

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Flexible Entitlement in Rochdale progress so far

• Introduced 15 hours flexible entitlement
• High level of engagement
• providers (126 of 128 providers)
• - clients (95 of eligible children/families)
  
• Majority of maintained sector offering some level
  of flexibility with lots offering 8-4.
• Calculated hourly rates for both maintained and
  PVI sectors
• Funding rates for 08/09 approved by Schools Forum
• Established rep on Schools Forum from PVI sector
• Established Childcare Working Group sub group
  of Forum.

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Flexible Entitlement - Two Terms In

• 38 of 39 eligible nursery classes are delivering
  15 hours in varying blocks of flexibility
• 4 of 4 Nursery Schools are delivering 15 hours in
  varying blocks of flexibility
• 35 of 36 playgroups are delivering 15 hours in
  varying blocks of flexibility
• 46 of 46 Private Day Nurseries are delivering 15
  hours , 45 offering the full 8am 4pm offer
• 5 childminders are offering the full 8am 4pm
  offer
• 2 Independent Schools are delivering 15 hours in
  varying blocks of flexibility
• 3501 children are accessing 15 hours in varying
  degrees of flexibility with another 1039 4 year
  olds in reception classes
• Take up has increased
• Cross border movement
• We expect patterns of flexibility to increase
  further

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Flexible Entitlement patterns of take up
Children attending by sector
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A revised definition for the future (DCSF
7.3.08)

• The entitlement
• Parents are entitled to access 15 hours of free
  early learning and care each week across a
  minimum of 3 days
• The length of the offer
• Parents will be able to access an entitlement
  over no less than 38 weeks. Where the offer is
  made over a longer period, parents will receive
  the offer for a number of hours a week
  proportionate to the length of the offer, so less
  than the 15 hours
• Number of providers
• Parents are entitled to access the full
  entitlement across a maximum of 2 providers,
  except where the LA deems there are exceptional
  circumstances
• Hours in the day
• The exact offer will be dependent on local
  capacity, but parents cannot access free
  provision for standalone blocks of less than 2
  hours, or for more than 10 hours in one day, or
  for more than 13 hours if accessing the offer
  over only two days

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Flexible Entitlement outstanding issues

• There remains reluctance amongst some providers
  to do anything above the minimum
• Partnership / collaboration is not well
  established , tending to be the last resort
• Some providers (an absolute minority) are
  pre-populating parental contracts, which cannot
  continue
• We still have work to do to ensure providers
  promote the flexible entitlement to parents in
  addition to publicity we provide
• Uncertainty created by cost analysis and single
  formula although general agreement it will be a
  fairer system

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Developing a Single Formula

• Asked by DCFS to pilot the introduction of a
  single formula by April 2009. Five other LAs (
  Croydon, Southampton, Somerset, Leeds and
  Hertfordshire) will also be piloting this.
• We have developed a process by which we plan to
  achieve this which breaks this down into four
  distinct process areas
• - Project management
• - Consultation
• - Impact Assessment
• - Delivery Monitoring

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Funding reforms why are DCSF requiring a single
formula?

• Mixed market inconsistencies in how maintained
  and PVI settings are funded
• Place-led funding means there is little incentive
  for maintained settings to encourage take-up of
  the full entitlement
• PVI sector often funded on a flat rate may not
  be getting vfm or funding the entitlement
  appropriately
• Extensive instability in PVI budgets can
  undermine quality and sustainability
• PVI sector often not represented on Schools Forum
  where funding decisions are taken

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How are they proposing to get there?

• Now cost analysis in PVI sector
• 2009/10 consistent method for counting pupils
  in maintained and PVI settings
• Impact assessment
• 2010/11 Single funding formula
• Greater PVI representation on Schools Forums
• Formula Development Project 6 LAs accelerating
  progress to provide learning for others and
  introduce from 2009

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What is a single formula?

• It will be different in each local authority
• It will ensure that funding in the PVI and
  maintained sectors is based on the same factors
  and principles, agreed with all relevant
  stakeholders
• Where there are differences between providers,
  these need to be transparent and justifiable

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Principles the single formula should

• Support the effective and efficient distribution
  of resources at a local level, while aiming to be
  as simple as possible
• Promote diversity and choice so that parents are
  able to access the free entitlement more flexibly
• Be based on common information from all sectors
  taking into account actual costs of delivery
• Take into account the same factors when deciding
  the level of funding for each sector, ensuring
  decisions are transparent and differences between
  sectors are justifiable and demonstrable
• Take into account the sustainability of the
  market and the statutory duty on the LA to
  provide sufficient childcare (including early
  years provision) and consider the need for
  stability in all sectors.
• Avoid perverse incentives
• Fund settings on the basis of participation not
  places
• Enable transition from the current to the future
  funding mechanism to be planned carefully and
  based on a clear impact assessment

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Former Funding Arrangements in Rochdale

• Maintained sector
• formula funded on a January headcount
• guaranteed/ certainty of funding at start of year
• paid for full 12.5 hours even if child only
  attended 2.5
• formula funding may give budget in excess of
  delivery cost
• difference in AWPU rate for nursery classes and
  nursery schools
• PVI
• flat rate across all sectors
• funding by actual attendance, termly headcounts
• not funded at all if child attends maintained
  setting also
• no analysis of grant covering cost

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Early Years Funding in Rochdale 2007/08

• Maintained sector
• 12.5 hours on current formula and FTE single
  pupil count basis
• Additional 2.5 hours on flexible entitlement rate
  (4.10 per hour)
• Additional funding dependant on degree of
  flexibility
• PVI
• All 15 hours on hourly rate on termly count
• Additional funding dependant on degree of
  flexibility

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Consultation

• Key to success of the Project
• Whole sector consultation undertaken separately
• 4 distinct consultation phases at each stage of
  formula development.
• Established Childcare Working Group reps all
  sectors
• Representative of PVI Sector on Schools Forum

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Where we are now

• Working on cost drivers for early years to inform
  the formula
• Cost analysis complete sector specific delivery
  costs (and base rates) established for
  consultation
• Outline formula elements for discussion

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Cost Analysis still ironing out

• Admin costs differences between high and low in
  both sectors are huge do we apply a standard
  rate to all?
• Early Years Professional - we want to encourage
  providers to recruit/train EYPs should payments
  for this be in cost analysis or as an addition as
  part of formula? What is an appropriate rate for
  an EYP?
• Sundries again huge discrepancies between high
  and low again a rate applied to all?
• Quality should reflect on-going development not
  where they are today should this be addition to
  formula?
• Head teacher/owner - proportion of costs
• Maintenance not to include capital build flat
  rate to all?
• Toys /Equip/Books flat rate to all as advised
  by advisory teachers pro rata to number of hours.
• Profit / Surplus

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Which leads us here
Ofsted Grade
Mentor Role
on going dev
Setting
Child
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Our project plan timescale

• Development of draft formula
• Draft formula to Forum/ Working Groups
• Modelling on impact of formula
• Revisions/ amendments
• Agree final formula

• Feb/ March 2008
• April 2008
• May/ June 2008
• July-November 2008
• December 2008