EARLY YEARS PROVISION DEVELOPING THE FLEXIBLE ENTITLEMENT AND MOVING TOWARDS A SINGLE FORMULA

1. EARLY YEARS PROVISION DEVELOPING THE FLEXIBLE ENTITLEMENT AND MOVING TOWARDS A SINGLE FORMULA

2. 10 Year Childcare Strategy: A Sure Start Children’s Centre in every community Extended services through every school Affordable, accessible childcare available for all 15 hours of free, flexible early learning and care for all 3 and 4 year olds Single funding Formula Better outcomes for children Breaking cycles of deprivation and raising standards Choice and flexibility for parents TheDCSF’s vision: what parents and children can expect by 2010

3. Take up of the entitlement What the DCSF is saying …….. past take up of the entitlement Overall nationally, 96% 3 year-olds and virtually all 4 year olds take up some free provision But: • 44% don’t take it in full And take up of any provision is lowest in: • Low income families • Workless families • BME Groups • Families in disadvantaged areas

4. Flexible Entitlement in Rochdale – progress so far • Introduced 15 hours flexible entitlement • High level of engagement – providers (126 of 128 providers) - clients (95% of eligible children/families) • Majority of maintained sector offering some level of flexibility with lots offering 8-4. • Calculated hourly rates for both maintained and PVI sectors • Funding rates for 08/09 approved by Schools Forum • Established rep on Schools Forum from PVI sector • Established Childcare Working Group – sub group of Forum.

5. Flexible Entitlement - Two Terms In • 38 of 39 eligible nursery classes are delivering 15 hours in varying blocks of flexibility • 4 of 4 Nursery Schools are delivering 15 hours in varying blocks of flexibility • 35 of 36 playgroups are delivering 15 hours in varying blocks of flexibility • 46 of 46 Private Day Nurseries are delivering 15 hours , 45 offering the full 8am – 4pm offer • 5 childminders are offering the full 8am – 4pm offer • 2 Independent Schools are delivering 15 hours in varying blocks of flexibility • 3501 children are accessing 15 hours in varying degrees of flexibility with another 1039 4 year olds in reception classes • Take up has increased • Cross border movement • We expect patterns of flexibility to increase further • We are continuing to monitor curriculum delivery over flexible hours

6. Flexible Entitlement – patterns of take up Children attending – by sector

7. A revised definition for the future (DCSF 7.3.08) • The entitlement • Parents are entitled to access 15 hours of free early learning and care each week across a minimum of 3 days • The length of the offer • Parents will be able to access an entitlement over no less than 38 weeks. Where the offer is made over a longer period, parents will receive the offer for a number of hours a week proportionate to the length of the offer, so less than the 15 hours • Number of providers • Parents are entitled to access the full entitlement across a maximum of 2 providers, except where the LA deems there are exceptional circumstances • Hours in the day • The exact offer will be dependent on local capacity, but parents cannot access free provision for standalone blocks of less than 2 hours, or for more than 10 hours in one day, or for more than 13 hours if accessing the offer over only two days

8. Flexible Entitlement – outstanding issues • There remains reluctance amongst some providers to do anything above the minimum • Partnership / collaboration is not well established , tending to be the last resort • Some providers (an absolute minority) are pre-populating parental contracts, which cannot continue • We still have work to do to ensure providers promote the flexible entitlement to parents in addition to publicity we provide • Uncertainty created by cost analysis and single formula – although general agreement it will be a fairer system

9. Developing a Single Formula • Asked by DCFS to pilot the introduction of a single formula by April 2009. Five other LAs ( Croydon, Southampton, Somerset, Leeds and Hertfordshire) will also be piloting this. • We have developed a process by which we plan to achieve this which breaks this down into four distinct process areas: • - Project management • - Consultation • - Impact Assessment • - Delivery & Monitoring

10. Funding reforms: why are DCSF requiring a single formula? • Mixed market – inconsistencies in how maintained and PVI settings are funded • Place-led funding means there is little incentive for maintained settings to encourage take-up of the full entitlement • PVI sector often funded on a flat rate – may not be getting vfm or funding the entitlement appropriately • Extensive instability in PVI budgets can undermine quality and sustainability • PVI sector often not represented on Schools Forum where funding decisions are taken

11. How are they proposing to get there? • Now – cost analysis in PVI sector • 2009/10 – consistent method for counting pupils in maintained and PVI settings • Impact assessment • 2010/11 – Single funding formula • Greater PVI representation on Schools Forums • Formula Development Project – 6 LAs accelerating progress to provide learning for others and introduce from 2009

12. What is a single formula? • It will be different in each local authority • It will ensure that funding in the PVI and maintained sectors is based on the same factors and principles, agreed with all relevant stakeholders • Where there are differences between providers, these need to be transparent and justifiable

13. Principles – the single formula should • Support the effective and efficient distribution of resources at a local level, while aiming to be as simple as possible • Promote diversity and choice so that parents are able to access the free entitlement more flexibly • Be based on common information from all sectors taking into account actual costs of delivery • Take into account the same factors when deciding the level of funding for each sector, ensuring decisions are transparent and differences between sectors are justifiable and demonstrable • Take into account the sustainability of the market and the statutory duty on the LA to provide sufficient childcare (including early years provision) and consider the need for stability in all sectors. • Avoid perverse incentives • Fund settings on the basis of participation not places • Enable transition from the current to the future funding mechanism to be planned carefully and based on a clear impact assessment

14. Former Funding Arrangements in Rochdale • Maintained sector • formula funded on a January headcount • guaranteed/ certainty of funding at start of year • paid for full 12.5 hours even if child only attended 2.5 • formula funding may give budget in excess of delivery cost • difference in AWPU rate for nursery classes and nursery schools • PVI • flat rate across all sectors • funding by actual attendance, termly headcounts • not funded at all if child attends maintained setting also • no analysis of grant covering cost

15. Early Years Funding in Rochdale 2007/08 • Maintained sector • 12.5 hours on current formula and FTE single pupil count basis • Additional 2.5 hours on flexible entitlement rate (£4.10 per hour) • Additional funding dependant on degree of flexibility • PVI • All 15 hours on hourly rate on termly count • Additional funding dependant on degree of flexibility

16. Consultation • Key to success of the Project • Whole sector consultation undertaken separately • 4 distinct consultation phases at each stage of formula development. • Established Childcare Working Group – reps all sectors • Representative of PVI Sector on Schools Forum

17. Where we are now • Working on cost drivers for early years to inform the formula • Cost analysis complete – sector specific delivery costs (and base rates) established for consultation • Outline formula elements for discussion

18. Cost Analysis – still ironing out • Admin costs – differences between high and low in both sectors are huge – do we apply a standard rate to all? • Early Years Professional - we want to encourage providers to recruit/train EYPs – should payments for this be in cost analysis or as an addition as part of formula? What is an appropriate rate for an EYP? • Sundries – again huge discrepancies between high and low – again a rate applied to all? • Quality – should reflect on-going development not where they are today – should this be addition to formula? • Head teacher/owner - proportion of costs • Maintenance – not to include capital build – flat rate to all? • Toys /Equip/Books – flat rate to all as advised by advisory teachers pro rata to number of hours. • Profit / Surplus

19. Which leads us here …………… Ofsted Grade on going dev Mentor Role Setting Child

20. Our project plan timescale • Development of draft formula • Draft formula to Forum/ Working Groups • Modelling on impact of formula • Revisions/ amendments • Agree final formula Feb/ March 2008 April 2008 May/ June 2008 July-November 2008 December 2008