Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 10, 2026

Purpose:

Content: 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 Early years funding formula allocation for Early years providers in Salford as set out below for 1 April 2026 to 31 March 2027 ·         Base rate for 9 months to 2-year-olds to £11.25 per hour (increase of £0.76p) ·         Base rate for 2-year-old funding to £8.20 per hour (increase of £0.50p) ·         Disadvantaged supplement for two-year-olds to £0.60p per hour (increase of £0.07p) ·         Base rate for 3-and-4 year old funding to £5.54 per hour (increase of £0.54p) ·         Deprivation supplement for 3-and 4-year-olds an increase of £0.02p per hour for banding 2-6 as detailed in the following table:    BAND   Deprivation Supplement by Band (based on IDACI) 1 0% - 25%                     £0.00 2 25% - 30% £0.14 3 30% - 40% £0.16 4 40% - 50% £0.20 5 50% - 60% £0.23 6 60% - 100% £0.26   ·         Quality graduate leaders supplement for 3 and 4-year-olds to £0.35p per hour (increase of £0.10p) ·         Quality QTS supplement for 3 and 4 year olds to £0.45p per hour (increase of £0.05p) The Reasons are: To enable Salford City Council to fulfil its statutory duty to administer Early Years Funding to settings across the City.  Options considered and rejected were: N/A - The DfE mandates that 97% of funding must go directly to Early Years Providers. This report outlines proposed increases to hourly base rates for early years providers of all age groups. Assessment of Risk: Low The source of funding is: Dedicated Schools Grant – Early Years (DSG-EY) Legal Advice obtained: Tony Hatton For 2026-27 Early Years Funding, the Department for Education confirms national rates in Autumn 2025, with Local Authorities setting local rates by a new February 28th deadline for providers, building on recent expansions like 30 hours for under-2s from Sept 2025, with confirmation of the Council’s allocation being given on 15th December Financial Advice obtained: Beth Mitchelle Under-2-year-old funding The pass out of £11.25 for under-2-year old funding (an increase of £0.76) is not expected to cause any issues, this is £0.15 more than the funding rate from the DSG.  This additional £0.15 for the base rate is able to be applied due to the prudent base rate for 2025/26, with it being the first year of the scheme.  The costs of administration etc will be covered by the retained balance of allocation while still reaching the required 97% 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 £0.50 to the base rate and increase of the £0.07 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 and 4-year-old funding A £0.54 increase to the base rate, (an increase of £0.02 over the allocated DSG funding – possible through the prudent funding of 2025/26), an increase of £0.02 to each supplement, alongside the £0.10 increase to graduate leader and £0.05 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 obtained: N/A HR Advice obtained: N/A Climate Change Advice obtained: N/A The following documents have been used to assist the decision process: Cabinet report - Early Years National Funding Formula Allocations for:- 1st April 2026 to 31st March 2027 Contact Officer:  David Fielding                          Telephone number: 0161 778 0707 The appropriate scrutiny to call-in the decision is the Children’s Scrutiny Panel.                  Signed: Paul Dennett                      Dated: 18th February 2026             City Mayor For Democratic Services use only This decision was published on 18.02.26                                               This decision will come in force at 4.00 p.m. on 25.02.26 unless it is called-in in accordance with the Decision Making Process Rules.