Decision

Salford City Council - Record of Decision (Cabinet)

I Paul Dennett, City Mayor, in exercise of the powers contained within the City Council Constitution do hereby approve:

The implementation of the new Early Years National Funding Formula allocations

for Early Years providers as set out below:

1st April 2025 to 31st March 2026

o   Base rate for 9 month to 2 year olds of £10:49 per hour (an increase of £0.49p)

o   Base rate for 2 year old funding of £7.70 per hour (increase of £0.35p)

o   Disadvantaged two year old supplement of £0.53p per hour (increase of £0.03p)

o   Base rate for 3&4 year old funding to £5.00 per hour (increase of £0.17p)

o   Deprivation supplement for 3&4 year olds an increase of £0.02p per hour for banding 2-6. 

BAND

Deprivation Supplement by Band (based on IDAC)

1

0% - 25%                    

£0.00

2

25% - 30%

£0.12

3

30% - 40%

£0.14

4

40% - 50%

£0.18

5

50% - 60%

£0.21

6

60% - 100%

£0.24

o   Quality QTS supplement for 3&4 year olds an increase to £0.40p per hour (increase of £0.10p)

The Reasons are:

To enable Salford City Council to fulfil its duty to support the delivery of Funded Early Years provision across the City. 

Options considered and rejected were:

Not applicable

Assessment of Risk:

Low Risk

The source of funding is:

Dedicated Schools Grant – Early Years (DSG-EY)

Legal Advice obtained: 

Not applicable

Financial Advice: Supplied by Beth Mitchell (Senior Accountant)

Under-2-year-old funding

The full pass out of £0.49 for under-2-year old funding is not expected to cause any issues, the costs of administration etc will be covered by the retained balance of allocation while still reaching the required 96% pass out rate.  The Under-2-year-old funding will be closely monitored throughout the year along with the Early Years DSG budget as a whole.

2-year-old funding

The increase of £0.35 to the base rate and increase of the £0.03 to the supplement allows a 97% pass out rate whilst the costs of administration etc will be covered by the current balance per hour.  The 2-year-old funding will be closely monitored throughout the year along with the budget.

3&4-year-old funding

A £0.17 increase to the base rate, an increase of £0.02 to each supplement, alongside the £0.10 increase to QTS allows for a 97% pass out rate to providers . The retained 3% will cover the costs of administration of the service. The fluctuations of rates and hours across the providers will be closely monitored throughout the year to ensure all nurseries receive the funds due and that the budget is managed sufficiently.

Procurement Advice:

Not applicable

HR Advice:

Not applicable

Climate Change Advice:

Not applicable

The following documents have been used to assist the decision process:

• Cabinet report - Early Years National Funding Formula Allocations for:- 1st April 2025 to 31st March 2026

Contact Officer: David Fielding                         

Telephone number: 0161 778 0707

The appropriate scrutiny to call-in the decision is the Childrens Scrutiny Panel     

Signed:         Paul Dennett                      Dated:                17.02.25                   .

                        City Mayor

For Democratic Services use only

This decision was published on  17.02.25                                           

This decision will come in force at 4.00 p.m. on 24.02.25                                                   unless it is called-in in accordance with the Decision Making Process Rules.