Changes to Early Years Funding Formula

Overview

As a result of the Government delivering its manifesto commitment to double the childcare offer to 30 hours per week for working parents of three and four year olds, changes are being made to how funding is allocated to Local Authorities to enable a fairer and more equitable distribution across the country.

This does not replace the existing offer of 15 hours (570 hours per year) for all three and four year olds and targeted two year olds.

The government consulted on the national early years funding formula in September 2016 and published its response on the 1st December (https://www.gov.uk/government/consultations/early-years-funding-changes-to-funding-for-3-and-4-year-olds). The document details both how the national funding formula will work and the level of funding local authorities will receive.

This consultation seeks to set out the context, process and recommendations for how funding for the Early Education Entitlement (EEE) will be allocated in 2017/18, including proposals for both centrally retained funding and rates for providers in Birmingham.

Why your views matter

Birmingham City Council’s Early Years Childcare and Children’s Centre Service is required to fund early education using the new national formula from April 2017. We are consulting on proposed changes to the hourly rates for three and four year olds using the new formula; the proportion of funding that is centrally retained; and the supplements that will be applied.

We need your views on our proposals.

Your views will be taken into full consideration when we finalise our plans which will go to the Cabinet Member for Children, Families and Schools and Schools Forum for approval during February 2017.