Plans include creating a standardised method for calculating the freeentitlement for three-and four-year-olds in all early yearssettings.
Following the Government's response to the consultation on Funding forSchools, Early Years and 14-16, children's minister Beverly Hughes saidon Monday that reforms would be introduced in stages:
- In 2009-2010, all local authorities will count pupils in maintainedand PVI settings in the same way so that providers will receive fundingbased on take-up.
- From 2010-11, all local authorities will introduce a new single localfunding formula for maintained and PVI settings with a standardisedtransparent method of setting funding per pupil
- In 2011-12, a single transparent formula so early years funding can beclearly identified in each local authority's funding.
Ms Hughes said, 'The changes will ensure that all local fundingallocations are transparent and consistent, and that historicinconsistencies are addressed. Importantly, early years providers willhave the chance to be fully involved in local decisions by joiningschool forums.'
She added that local authorities will carry out an assessment on thecost of delivering the free entitlement, and present this to theirschools forum, before considering in early 2008 the distribution offunding to schools and early years providers for the next threeyears.
Early years organisations expressed concern that many of the reformswould not be implemented until 2011. National Day Nurseries Associationchief executive Purnima Tanuku said, 'We are very concerned thatcritical decisions on funding the free entitlement for the next threeyears will be made later this financial year based only on guidance andno requirements on local authorities to fund all settings equitably,regardless of whether they are in the private, voluntary or maintainedsector.'
Darrell King, a nursery owner and secretary of the Association of PVIProviders, Kent, which has campaigned for a review of nursery educationfunding, said, 'The Government has finally recognised that providershave been under-funded for years and we are pleased the pressure byindividual providers and organisations over the last year has now takeneffect.'
But she said the Government's staged approach would not help providerswho are already threatened with closure. 'We therefore need the interimmeasure of an amnesty on the ban on top-up fees. Providers have clearlybeen underpaid long enough, and for us to remain in operation until thesuggested measures come into place the Government must act now.'
Colin Willman, Federation of Small Businesses' spokesman said, 'When theimprovements are introduced many of the nurseries will no longer betrading due to the losses they suffer for operating the scheme.'
