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Consultation opens on changes to way LAs fund providers

Ministers plan to change the way that nurseries and childminders are funded through local authorities, in a move towards developing a new national funding formula for free early education places.

The proposals were revealed in a Department for Education consultation published last week, alongside draft guidance,that sets out changes to how local authorities will be expected to work with early years providers from September.

The Government intends to change the law at the earliest opportunity and bring in revised guidance on local authorities' duties relating to early education from 1 September to supersede existing guidance.

The consultation proposes simplifying the funding system for providers by limiting the number of base rates and supplements from the Early Years Single Funding Formula, which are 'unnecessarily complex'.

This would be based on the approach taken to devise the funding model for places for disadvantaged two-year-olds.

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