Spending Review and EY funding announcement

[Simona]

'doubling free childcare from 15 hours to 30 hours a week for working families of 3- and 4-year-olds, worth up to £5,000 per child per year from September 2017, and investing over £1 billion more a year by 2019 to 2020 on free childcare places for 2-, 3- and 4-year-olds'

So, with my dodgy maths...

'up to' £5000 per child per year
divided by 38 term-time weeks a year = £131.58 per week
divided by 30 hours a week = £4.38 per hour ????

Please do correct my maths or my reckoning if I am way off here, but that is not an increase? (especially with LA creaming off some before it even gets to us)

?



I hope someone can explain this soon...

£4.38 is the sum PLA arrived at in their research....if so many providers in some LA will still lose out.
Gyimah has just confirmed the new funding rate will be announced this afternoon

At the moment we don't know if LAs will be allowed to cream off in future...can they do so if there is a National Funding Formula?

Not long now...I could do with a glass of wine right now ! ...will settle for a cup of tea!

[Simona]

Here are the new funding rates confirmed by Gyimah...

3/4 year olds = £ 4.88 including EYPP...so the rate is £4.35 + 53p for EYPP
2 year olds = £5.39

Back when I hear more but this was a waste of our time 'me thinks'!!

[Mouse]

Here are the new funding rates confirmed by Gyimah...

3/4 year olds = £ 4.88 including EYPP...so the rate is £4.35 + 53p for EYPP
2 year olds = £5.39

Back when I hear more but this was a waste of our time 'me thinks'!!

So less than it is now? I though the government had guaranteed the rate would be increased.

If the £4.35 is the amount that I receive it'll be OK. If the LA keeps 30%, as they do now, it would put it down to just over £3.

[Simona]

So less than it is now? I though the government had guaranteed the rate would be increased.

If the £4.35 is the amount that I receive it'll be OK. If the LA keeps 30%, as they do now, it would put it down to just over £3.

I hope someone will start crunching the figures soon...as to the creaming off we don't as yet know if LAs will be allowed to do so in future....it is a burning question of course!
If they do what would the point be of a National Funding Formula?

I am going back to ask just that...but I doubt Gyimah will answer as he never does.

[Mouse]

I hope someone will start crunching the figures soon...as to the creaming off we don't as yet know if LAs will be allowed to do so in future....it is a burning question of course!
If they do what would the point be of a National Funding Formula?

I am going back to ask just that...but I doubt Gyimah will answer as he never does.

Thanks for all the updates Simona.

[Simona]

Here is another update
It looks like there will be a consultation...oh yes another one ...on the Funding Formula

Those new funding figures will be from 2017...I am getting a bit lost here now...does that mean they are not final?



Chancellor reveals more details of 30-hour childcare | Nursery World

[Simona]

Ok ...Childcare Bill is being debated right now in HoC

https://www.youtube.com/watch?v=05qB...ature=youtu.be

Apparently Nicky Morgan will conduct an EY Funding Formula review...clear?

[BallyH]

I feel another foggy headache coming on!

[Simona]

I feel another foggy headache coming on!

I have one already...in the meantime here is PLA's response to the new funding...just released

https://www.pre-school.org.uk/media/...unding-changes

[Mouse]

I must admit, I do agree with the additional funding only being available to parents working 16 or more hours a week.

I did wonder why they originally said 8 hours. Why would a parent need an extra 15 hours childcare if they were only working 8 hours?

[Simona]

I must admit, I do agree with the additional funding only being available to parents working 16 or more hours a week.

I did wonder why they originally said 8 hours. Why would a parent need an extra 15 hours childcare if they were only working 8 hours?

I did too...how can anyone work 8 hours claim 30? I assumed it was 8 hours per parent per week.

Osborne has cut the threshold for earnings to £100,000 per parent...it was £300,000 combined before...that is where he is saving £215m.
I did ask about LAs creaming off...that will be part of the National Funding Formula Nicky Morgan will carry out ......apparently...but more info is required.

PS. Morgan was aske if funding will be ring fenced but gave no clear answer just that transparency was needed! The penny has dropped finally

[AliceK]

Thank you for taking the time to do this today Simona

xx

[Simona]

Cost of childcare review has just been published...happy reading!!

https://www.gov.uk/government/upload...AL_VERSION.pdf

AliceK...no problem

This is so important for cms....but thanks go to PLA who is on the ball following all sorts of links!
I am just following them and then tweeting to Gyimah

[AgentTink]

The hours rate had just been released on the Foundation Years website:

Secretary of State for Education, Nicky Morgan, has announced the new average funding rate for the early years. The average hourly rate for free childcare for 3 and 4 year olds will be £4.88 including the EYPP, and for free 2 year old childcare will be £5.39. She also announced that a national early years funding formula review will also be conducted in 2016.

Earlier the Chancellor announced some changes to the 30 hours free childcare eligibility in the Spending Review. To be eligible parents needs to be working the equivalent of 16 hours per week per parent at the national minimum wage, and earning less than £100,000 per parent.

The DfE has also published the review into how much it costs for childcare providers to manage the free early education entitlement for children aged 2 to 4.

[Simona]

The DfE has just published this research 'Cost of delivering the Early Education entitlement'

https://www.gov.uk/government/upload...ntitlement.pdf

Some more number crunching for you Moggy!

[bunyip]

So, no clear answer from the regime on the key points affecting providers:

• What will be the hourly rate paid to us? = Dunno.
• Will LAs continue to cream off money that is due to us? = Dunno either.

I'd also like to know where we stand on the test of parents being eligible for the funding. To be precise, if a family makes a fraudulent or erroneous claim (or their circumstances change so during an existing arrangement) who takes the risk and who bears the loss?

Will the parents be issued an eligibility letter (as with the current 2yo scheme) or will we have to take them on trust that they are entitled if they say they are? Clearly we're in no position to make intrusive 'means test' - style investigations into a family's work/financial arrangements.

[Simona]

So, no clear answer from the regime on the key points affecting providers:

• What will be the hourly rate paid to us? = Dunno.
• Will LAs continue to cream off money that is due to us? = Dunno either.

I'd also like to know where we stand on the test of parents being eligible for the funding. To be precise, if a family makes a fraudulent or erroneous claim (or their circumstances change so during an existing arrangement) who takes the risk and who bears the loss?

Will the parents be issued an eligibility letter (as with the current 2yo scheme) or will we have to take them on trust that they are entitled if they say they are? Clearly we're in no position to make intrusive 'means test' - style investigations into a family's work/financial arrangements.

Well some figures are there...but with a national review it may change again
I am unclear why they announced the new funding knowing Morgan was going to do another consultation?

There is a paragraph on LAs in the Childcare Review and it explains why LA 'retain' some funding at the moment...for administration they say.
When asked about ring fencing Morgan was not clear today.

The issue of parents' eligibility and who is responsible for finding that out is still being questioned...isn't there a threat in the Childcare Bill that parents and providers can end up penalised?
I have got that question in my agenda for my December meeting.

Is the new rate favourable to you Bunyip? will you gain for 3/4 year olds but lose for the 2 year old funding?

If you have time read the DfE research...it is more realistic than the Childcare Review and talks about early education not childcare....small sample of providers but key findings are more representative I think.

[BallyH]

Thank you so much for keeping us posted - very hot news straight off the press!
So are you thinking the rates they are quoting are after our LA's have taken the cream, because I could cope that that rate! But if not, well............

[bunyip]

Well some figures are there...but with a national review it may change again
I am unclear why they announced the new funding knowing Morgan was going to do another consultation?

There is a paragraph on LAs in the Childcare Review and it explains why LA 'retain' some funding at the moment...for administration they say.
When asked about ring fencing Morgan was not clear today.

The issue of parents' eligibility and who is responsible for finding that out is still being questioned...isn't there a threat in the Childcare Bill that parents and providers can end up penalised?
I have got that question in my agenda for my December meeting.

Is the new rate favourable to you Bunyip? will you gain for 3/4 year olds but lose for the 2 year old funding?

If you have time read the DfE research...it is more realistic than the Childcare Review and talks about early education not childcare....small sample of providers but key findings are more representative I think.

It's favourable if ring-fenced and we get it all. Otherwise, we're back to "who knows"?

So, all in all, until the national review is done, we're all left with "who knows?"

[Mouse]

I still don't understand how this is seen as an increase, which the PM said we would have...don't tell me he's fibbed again

If the current rate is £5.09, £4.35 definitely isn't an increase.

And if the £4.35 is the rate that we would actually receive, I'm sure that won't be an increase in all LAs.

It is annoying me that £4.88 is the main figure being quoted when a lot of us won't get the EYPP, but again, parents will see the figures and think we're raking it in!

And the word worrying me most is "average". Does that mean some areas or types of settings will be paid more than others?