The Business Advisor (Schools) will present a report, Document GI, which provides an update on Early Years DSG funding matters, including the DfE’s consultation on the proposals for a National Funding Formula. The report asks for the Forum’s view about areas of consensus that should be included in the Authority’s response to this consultation. Feedback from the Early Years Working Group (which met on 19 September) will be presented verbally to the meeting. This report is presented in advance of asking the Forum to agree its consultation on Bradford’s Early Years Single Funding Formula for the 2017/18 financial year, which it is anticipated will be presented to the 19 October meeting.

Recommended –

The Schools Forum is asked to consider and to note the matters raised in the report and also to recommend areas of consensus that should be included in the Authority’s response to the DfE’s consultation.

         (Andrew Redding – 01274 432678)

The Business Advisor (Schools) presented a report, Document GI, which provided an update on Early Years DSG funding matters, including the DfE’s consultation on the proposals for a National Funding Formula. The report asked for the Forum’s view about areas of consensus that should be included in the Authority’s response. It was explained that this report was presented in advance of asking the Forum to agree its consultation on Bradford’s Early Years Single Funding Formula for the 2017/18 financial year, which it is anticipated would be presented to the 19 October meeting.

The Business Advisor (Schools) presented the key elements of our assessment of the impact of the DfE’s proposals on the level of DSG funding into the Bradford District and on individual types of providers. Many of these had already been presented within earlier agenda items. He emphasised that the proposed reduction in Bradford’s Early Years Block rate of funding for the 3 and 4 year old free entitlement, £3m in total, will begin from April 2017 and be largely completed at April 2018 i.e. the impact of this reduction will be felt sooner rather than later. Our rate of DSG funding for the 3 and 4 year old offer will drop from £5.08 per hour to £4.57. In estimated terms, this will mean that the average delegated setting base rate of funding for providers would reduce from £4.41 now to £4.11 at April 2019. This reduction takes place alongside an additional reduction in the value of funding for deprivation and the assumed cessation of additional funding to support the additional cost structure of Nursery Schools. The combined result of the DfE’s proposed reform will be the flattening of the distribution of Early Years DSG funding, nationally between authority areas and locally between different types of providers and between providers delivering the free entitlements to children from deprived and less deprived backgrounds.

The Business Advisor (Schools) explained that it was currently unclear whether some of the DfE’s proposals for formula change are to be implemented from April 2017 or by April 2019. However, he emphasised that rates of funding for providers will decrease at April 2017. The Early Years Working Group is meeting again to consider proposals for Bradford’s Early Years Single Funding Formula for the 2017/18 financial year and to make a recommendation on the £1.2m one off monies. One of the key considerations for the EYWG will be our timetable for implementing change in Bradford in response to the DfE’s reforms.

In summarising the Authority’s proposed response to the DfE’s consultation (shown in Appendix 1), the Business Advisor (Schools) explained that the EYWG has recommended that a clearer statement be added about the impact that funding reduction will have on our ability to sustain the improvements that have been made in the quality of early years provision and workforce.

Members agreed that they are satisfied with the proposed response. A Member asked for the composition of the EYWG and this was provided. Another Member stated that, as Nursery Schools are currently unable to convert to academy status, the option to develop MAT solutions to support future sustainability is not currently available. The Representative of Maintained Nursery Schools stated that the DfE’s National Funding Formula proposals for Early Years are contradictory, on one hand stating that Nursery School have different and additional cost bases but, on the other, proposing a set of changes that ignore this.  

Resolved –

1)         That the information in Document GH be noted.

2)         The Schools Forum agrees with the Authority’s proposed response to the DfE’s consultation (shown at Appendix 1) and for this response to be submitted.

Action:           Business Advisor (Schools)