Purpose

Proposed
Decision:
 

1.          
Approve acceptance
of:

a.           
the new revenue grant to support to the roll out of
the wraparound childcare programme, and

b.           
the capital grant to support the delivery of
extended early years funded entitlement and wraparound
childcare;

2.          
Authorise the Director of Education
and SEND to take the actions required to deliver 1. and 2. above,
in line with the relevant grant conditions, including but not
limited to entering into relevant contracts, to be authorised to
enter into variations as envisaged under the contracts and making
payments to early providers;

3.          
Approve changes to the Council’s Early Years
Local Funding Formula for early years providers that is used to
calculate the early years funding rates for funded entitlements
from 1st April 2024; and

4.          
Authorise the Corporate Director of Children, Young
People and Education to make any necessary changes to the Funding
Formula rates once final affordability is known and agree the
payment process to early years providers.
 
Reason for
Decision:
 
All eligible parents of children aged three- and
four-year olds are entitled to up to 30 hours free childcare per
week up until they start school, with this offer extended to
disadvantaged two-year olds. The Council has a duty to secure
sufficient childcare to enable parents to access their funded
entitlement, and must, so far as is reasonably practicable, secure
sufficient childcare places are available for working parents of
children aged 0-14 years. 
 
The Spring Budget announced a
range of measures to support early education and help parents with
childcare so they can return to work more easily. This included new
funded entitlements:
 

From April 2024,
eligible working parents of 2-year-olds can access up to 15 hours
per week for 38 weeks of the year.
From Sept 2024,
eligible working parents of children aged 9 months up to
3-year-olds can access up to 15 hours per week for 38 weeks of the
year.
From Sept 2025,
eligible working parents of children aged 9 months up to
3-year-olds can access up to 30 hours per week for 38 weeks of the
year.

 
Parents working the equivalent
of 16 hrs a week (earning the national minimum wage or living age)
will be able to benefit from this offer. HMRC will continue to
confirm eligibility.  Eligible
low-income families in receipt of certain benefits will continue to
be entitled to 15 hours of funded childcare for 2-year-old
children.
 
The Government also announced
its ambition that, by 2026, all parents and carers of primary
school-aged children who need it will be able to access term time
childcare in their local area from 8:00 AM- 6:00 PM. This is known
as wrap-around childcare.
 
Additional funding
is  being made available to the County
Council via the Early Years Funding Block to deliver the new
entitlements from 1 April 2024.. 
 
Additionally a Wraparound
Childcare grant is being provided, during the three financial years
of 2023-24 to 2025-26.  The County
Council is to receive a maximum of £52k in 2023-24,
£4.1m in 2024-25 and £1.9m (provisional) in
2025-26. 
 
The County Council has also
been allocated £2.6m capital funding to help ensure the new
entitlements and wraparound childcare ambition can be
secured.  It is expected the capital is
split 80:20 respectively.
 
The County Council needs to
take a number of actions to deliver the existing and new
entitlements and ambitions.
 
1.   
The Council is responsible for both determining the Early Years
Local Funding Formula which is used for setting the hourly rates
paid to early years providers for this Free Entitlement offer,
along with paying providers. This is fully funded from the Early
Years Block of the Dedicated Schools Grant provided by the
Department of Education.
2.   
The Council remains responsible for setting the funding rate for
all free entitlements in 2024-25 including those due to be
introduced from 1st April 2024. This decision will
confirm how this additional Early Years funding will be distributed
to early years providers in line with Government
guidelines. 
3.   
Delivery plans need to be submitted to the Department for Education
for wraparound childcare initiative – the first in February
regarding delivery capacity and the second in May on the actual
programme.
 
The options considered for
setting the early years funding rates are outlined in the
consultation document to early years providers. Options must meet
the DfE guidelines.
 
The proposed decision supports the key priority
“Levelling up Kent” within the ‘Framing
Kent’s Future (2022-26)’.   Supporting the Kent economy to be resilient
and successful depends upon having a flexible, adaptable, talented
workforce.  Enabling parents to be
active in the workforce is an essential component of this.
 
The proposed decision supports
“Securing Kent’s Future – budget recovery
strategy”.  The additional
activity is funded by Government Grant, with allowances within
these for the County Council’s delivery costs.  No additional funds from KCC are
required.  Supporting families to work
and be independent of state support assists the County
Council’s budget position. 
 
Delivering the extended funded
entitlements and wraparound childcare ambition is necessary to
discharge the Authority’s statutory duty.  The existing provider agreement provides the
revenue contracts required. Contracts/funding agreements will need
to be entered in to for capital awards. 
 
 
 

Decision

As Cabinet Member for Education and Skills in consultation with Cabinet Member for Integrated
Children’s Services, I agree
to:

 

I.              
approve acceptance of:

a.            
the new revenue grant to support to the roll out of
the wraparound childcare programme, and

b.            
the capital grant to support the delivery of
extended early years funded entitlement and wraparound
childcare;

II.            
authorise the Director of Education
and SEND to take the actions required to deliver the new funded
early years entitlements and wraparound childcare aspirations, in
line with the relevant grant conditions, including but not limited
to entering into relevant contracts, to be authorised to enter into
variations as envisaged under the contracts and making payments to
early providers;

III.          
approve changes to the Council’s Early Years
Local Funding Formula for early years providers that is used to
calculate the early years funding rates for funded entitlements
from 1st April 2024 as set out below:

a.   
the basic rate for all free entitlements for
2024-25:

Basic
Rate

£
per hour (2024-25)

Universal base rate for 3- & 4-year-olds (equivalent to up
to 15 hours per week for 38 weeks)

£5.16 per hour

Extended base rate for 3- & 4-year-olds (additional 15 hours
per week for 38 weeks for eligible working parents)

£5.16 per hour

Base
rate for 2-year-olds (for disadvantaged & eligible working
parents equivalent to up to 15 hours per week for 38
weeks)

£7.55 per hour

Base
rate for 9-month to 2-year-olds (for eligible working parents
equivalent to up to 15 hours per week from September
2024)

£10.26 per hour

 

b.   
Additional supplementary rates for 3- & 4-
year-olds free entitlements:

-      
Deprivation: based on a children’s eligibility
against the Index of Deprivation Affecting Children Index –
providers with children residing in the top 25% most deprived areas
will receive an additional rate of between £0.54 per hour
and  £0.13 per hour per eligible
child.   

-      
Qualified leader (for those employed on Statutory
Teachers’ terms & conditions):  £1.20 per hour;

-      
Qualified leader (for Early Years Professionals
& Teachers’ who are not employed on statutory terms &
conditions): £0.30 per hour;

-      
System Leadership (Quality): fixed budget of
£250,000

c.    
there will be no additional supplementary rates for
either 2-year-olds and 9 months to 2 years (with all funding passed
through the base rate only). 

d.   
to budget for the Special Educational Needs
Inclusion Fund to be jointly funded from the High Needs Block and
Early Years Block from 2024-25;

e.   
to budget for a 1% contingency to mitigate against
the financial risk of implementing the new funded entitlement offer
for working parents for 2-year-olds from April 2024; and for
children from 9 months in September 2025.  

f.     
use of up to 5% of the Early Years Block to fund
centrally retained early years services provided by the
Council.

g.   
The Disability Access Fund and Early Years Pupil
Premium payments will be set at nationally prescribed rates and
eligibility criteria.

h.   
implement a monthly payment process for childminders
during 2024-25.

IV.          
and, Authorise the Corporate Director of Children,
Young People and Education to make any necessary changes to the
Funding Formula rates once final affordability is known and
implement payment process to early years providers.