William Eichler 11 August 2016

New funding formula for early childcare

New funding formula for early childcare image

The Government has introduced a new funding system for nurseries, preschools and childminders in a bid to shore up its flagship 30-hour free childcare policy.

The current funding formula is based on how much a council has historically spent rather than how much it actually costs to meet local childcare needs. The Government claims the new system will be fairer.

The new formula—opened to consultation today—is based on three factors: a ‘universal base rate’ of funding for each child, an ‘additional needs factor’, and the cost of providing childcare in different parts of the country.

Taking these factors into consideration, the Government argues, would ensure every local area is funded fairly for the core costs of delivering childcare, while providing enough flexibility to cater for additional needs.

Launching the consultation, education secretary Justine Greening said: ‘These changes will transform the way we fund early years’ education, creating a fairer system that better provides the affordable, high-quality childcare families deserve.’

Whitehall is committed to doubling the free entitlement to childcare to 30 hours a week for working parents, but is has come under fire in the past for not providing sufficient levels of funding to deliver.

Last May, 30 early years providers in York pulled out of a pilot scheme for the policy because of an ‘unacceptably low rate’ of funding. They argued the funding of an average £3.66 per hour, announced earlier in the month, was less than the Government’s promise of a £4.88 average rate.

PWLB hike: A rise too far? image

PWLB hike: A rise too far?

What impact will the increase to the Public Works Loan Board rate have on councils’ housing and other capital schemes? Neil Merrick investigates.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of HR/OD

Babergh & Mid Suffolk
£60,000 circa
The role will involve working closely with the Senior Leadership Team and Chief Executive to lead our People Strategy and... Ipswich, Suffolk
Recuriter: Babergh & Mid Suffolk

Customer Services Assistant (Libraries)

Essex County Council
Up to £9469 per annum
Please note this is part time position (18.5 hours a week) across Uttlesford, mainly based in Dunmow and Stansted and is to be offered on an initial 6 England, Essex, Dunmow
Recuriter: Essex County Council

Customer Services Assistant (Libraries)

Essex County Council
Up to £18938 per annum
Please note this position is to be offered on an initial 6 month , fixed term basis. Do you enjoy working with people? Enthusiastic about playing a ke England, Essex, Saffron Walden
Recuriter: Essex County Council

Customer Services Assistant - Mark Hall Library

Essex County Council
£17000 - £18950 per annum
Please note that this position is a part time role, offering 18.5 hours per week and is offered on a Fixed Term Basis for a period of 6 months. England, Essex, Harlow
Recuriter: Essex County Council

Senior Practitioner - Family Support & Protection

Essex County Council
Negotiable
Please note this is a fixed term contract or secondment opportunity until December 2020 In Essex County Council we are "Serious about Social Work". H England, Essex, Basildon
Recuriter: Essex County Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores what impact the increase to the Public Works Loan Board rate have on councils’ capital schemes and why adopting AI will not just improve customer service response times for councils.

This issue also finds out how local government pension funds are backing infrastructure projects and calls on local government to get better value from its technology spend.

Register for your free magazine