Decision details

Local Authorities are required to consult with early years providers and Schools Forum with any proposed changes to their Early Years Funding Formula. Under very tight DfE timelines, a consultation took place between 20 December 2024 and 19 January 2025. Taking account of the outcomes of the consultation proposals matching the decision below were supported by Schools Forum on 7^th February 2025.

This will be implemented from 1 April 2025.

1. Increase the amount retained centrally by £275,652. £30,000 to further support administration and distribution of the early years funding as the free entitlement continues to expand. £200,000 for inclusion support that the council can no longer afford to pay for from its core budget and £45,652 for inflation at 4%.
2. Retain a contingency fund of 0.8% from each funding stream. Funds will be paid to providers and not used for any other purpose.
3. Transfer £500,000 from the Early Years Block to the High Needs Block in 2025-26 to support financial sustainability as per the Safety Valve Agreement with the Department for Education.
4. SENDIF budget is set at £3 million, which includes a £2 million contribution from the Early Years Block in addition to the £1 million contribution already agreed from the High Needs Block
5. To undertake further engagement with providers and research into payment systems operated by other local authorities before any decisions are made regarding the frequency of payments.