Changes to make early education funding fairer and more transparent will be introduced as part of Government plans to ensure that the private and voluntary sector is on a level footing with maintained provision.
Plans include creating a standardised method for calculating the free entitlement for three-and four-year-olds in all early years settings.
Following the Government's response to the consultation on Funding for Schools, Early Years and 14-16, children's minister Beverly Hughes said on Monday that reforms would be introduced in stages:
- In 2009-2010, all local authorities will count pupils in maintained and PVI settings in the same way so that providers will receive funding based on take-up.
- From 2010-11, all local authorities will introduce a new single local funding formula for maintained and PVI settings with a standardised transparent method of setting funding per pupil.
- In 2011-12, a single transparent formula so early years funding can be clearly identified in each local authority's funding.
Ms Hughes said, 'The changes will ensure that all local funding allocations are
transparent and consistent, and that historic inconsistencies are addressed. Importantly, early years providers will have the chance to be fully involved in local decisions by joining school forums.'
She added that local authorities will carry out an assessment on the cost of delivering the free entitlement, and present this to their schools forum, before considering in early 2008 the distribution of funding to schools and early years providers for the next three years.
Early years organisations expressed concern that many of the reforms would not be implemented until 2011. National Day Nurseries Association chief executive Purnima Tanuku said, 'We are very concerned that critical decisions on funding the free entitlement for the next three years will be made later this financial year based only on guidance and no requirements on local authorities to fund all settings equitably, regardless of whether they are in the private, voluntary or maintained sector.'
Darrell King, a nursery owner and secretary of the Association of PVI Providers, Kent, which has campaigned for a review of nursery education funding, said, 'The Government has finally recognised that providers have been under-funded for years and we are pleased the pressure by individual providers and organisations over the last year has now taken effect.'
But she said the Government's staged approach would not help providers who are already threatened with closure. 'We therefore need the interim measure of an amnesty on the ban on top-up fees. Providers have clearly been underpaid long enough, and for us to remain in operation until the suggested measures come into place the Government must act now.'
