Decision

RESOLVED:

Cabinet is recommended to agree that:

1. 1.  A 12 week statutory consultation and engagement period on the restructuring of early education and childcare provision delivered by the children’s centres funded by the Council to deliver subsidised childcare, as a means to achieving greater efficiency.  The consultation is scheduled to commence on 31 January to 24 April 2024.
2. 2.  Following the conclusion of the consultation, to consider the results of the consultation and recommendations on the restructuring of early education and childcare provision.

REASONS FOR DECISION

The Childcare Act 2006 at s5(d) imposes a legal duty on a Local Authority to consult before making any significant change in the services provided through a children’s centre and before anything is done that would result in a children’s centre being closed.

The purpose of the consultation is to propose changes to the way children’s centres deliver early education and childcare in the future.  The reason for the proposed change is to improve the sustainability of the centres.  If we do not make changes, the current deficit of £1.07m across the children’s centres is likely to continue to increase. If we do not make decisions now, it may mean more far-reaching proposals at a later date. Making unpopular decisions now is intended to reset the way early education and childcare is delivered in order to achieve greater efficiency, and maximise opportunities to increase occupancy to maintain viability. 

The consultation is intended to give service users, staff and anybody impacted by the remodelling of the service, an opportunity to shape the proposals. 

DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND REJECTED

The option to significantly increase fees to recover a greater portion of expenditure if implemented, may discourage families from accessing the children’s centre provision, and therefore have a negative impact on occupancy. The provision may also become affordable to higher income families at the exclusion of lower income families.  We have seen a reduction in higher income families since introducing the new fee bands and post Covid. For this reason this option is not being acted on as suggested. Instead, annual increases to nursery fees will continue to be subject to inflation and in doing so will continue to significantly taper the subsidy to higher fee bands. 

Opportunities identified during the review in collaboration with a stakeholder reference group to test and refine 3 levers to reduce expenditure, increase income and refine the model are set out in the executive summary of the E&Y Report: Appendix 1, attached to the exempt appendices section of this report. 

As part of the SEND Strategy 2022-25, and the Early Years Strategy 2021-26, one centre in the north of the borough is in scope to reprovision by 2025 into an Additional Resource Provision (ARP) to support children with complex needs.  Respondents to the recent 2023 Children and Family Hubs consultation commented on SEND provision and support needed for children and their families.  The intention is to align the ARP with best SEND practice in accordance with the requirements of the Dedicated Schools Grant (DSG), and replace subsidised childcare places with term time funded 15 and 30 hours Early Years Entitlement places for 2, 3 and 4 year olds with additional needs, alongside mainstream children.