Proposed early years funding changes likely to hit areas with low places hardest, analysis reveals
By Rachel Lawler
Proposed changes to the funding rates for the 15 and 30 hours offers are likely to hit areas already struggling with a declining number of early years places, according to new analysis by the Alliance.
The Department for Education (DfE) is currently consulting on changes to the formula it uses to calculate how much funding each local authority receives for its 15 and 30 hours offers. The formula aims to reflect the difference in costs depending on where the pre-school, nursery or childminding setting is based.
Low availability
The Alliance鈥檚 analysis of the proposed changes shows that local authorities that are already struggling with availability of early years places 鈥 largely in northern England 鈥 will be hit much harder by the changes than areas 鈥 largely in London and the south east 鈥 that have seen rising availability of places in recent years.
Fixed minimum and maximum
The consultation also proposes new fixed minimum and maximum increases to the early years funding rates between 2022/23 and 2023/24.
These proposals would see funding rates for local authorities that get the least out of the funding rate formulas see rates increase by just 1% for both two-year-olds and three- and four-year-olds.
Those that get the best out of the funding rate formula would see their rates rise by up to 8.6% for two-year-olds and around 4.5% for three- and four-year-olds.
Record inflation
Neil Leitch, CEO of the Alliance, commented: 鈥淲hile we recognise the need to ensure that local early years funding levels accurately reflect the costs of delivering places in different areas, it is incredibly concerning that so many areas that are already seeing a decline in early years places are set to receive such miniscule increases in funding.
鈥淟et鈥檚 be clear: a 1% increase in early years funding at a time when inflation rates are at record highs, energy costs are soaring and the national minimum and living wages are continuing to rise is simply not sustainable 鈥 and the likelihood is that many of the nurseries, pre-schools and childminding settings operating in these areas are very likely to struggle to remain afloat for much longer.
鈥淭he government鈥檚 insistence on focusing on national statistics when talking about the availability of early years places completely ignores the huge regional discrepancies that have emerged over recent years. What use is it telling a parent that there are plenty of places available across the country if there are none in their local area?
鈥淯ltimately, until there is enough money in the early years funding pot to begin with, there will always be areas that lose out, no matter how it is distributed. The government simply must commit to investing what our vital sector needs to remain viable. Ignoring this problem will not make it go away.鈥
Find out more
You can view the consultation .