Deadline for confirming provider funding rates to be brought forward, government announces
By Shannon Pite
The Department for Education has announced plans to place new limits on how long local authorities have to confirm early years funding rates ahead of them coming into effect.
At the moment, councils are required to notify providers of final budgets for the upcoming financial year by 31 March. However, with a number of providers currently warning that they cannot confirm whether they will opt into the extended entitlement offer because they have yet to receive their final funding rates, the government has announced that, going forward, local authorities will be required to confirm final providers rates within a set window 鈥 likely to be eight weeks 鈥 after the DfE has confirmed council rates.
The government also says that it has 鈥渕ade clear鈥 to all local authorities that they should confirm local funding rates that come into force from 1 April no later than the end of February.
Comment, Neil Leitch, CEO of the Early Years Alliance, said:
"For far too long, early years providers have faced the prospect of having to wait until the very end of March to find out what funding rate they will be receiving in April, leaving them with no time to budget or prepare for the financial year ahead. We know what a huge strain this has placed on those affected settings, and so we welcome the fact that the government has finally taken action on this issue and is looking to ensure that providers receive their final rates in good time before they come into effect.
"That said, we are very mindful that while much blame has been placed on local authorities for these delays, councils cannot start the work needed to confirm provider funding rates until they themselves receive their own rates from government. There is a risk, therefore, that by simply shortening the window that local authorities have to confirm rates, rather than committing to providing them with their own rates earlier, we will end up in a situation where local authorities don't have enough time to consult with local providers before making a final funding rate decision.
"It is vital, therefore, that government works closely with both providers and local councils in the weeks ahead to ensure that this change is one that can and will actually work in practice."