Funding Review for 30 hours

Funding Review for 30 hours**HEADLINE NEWS**

Sam Gyimah has announced £4.35 + 53p EYPP for 3 & 4 years and £5.39 for 2 year olds. No mention of if this is to be provider guaranteed rate or an LA rate. But its progress!

And the findings from the funding review are within the Costs for Childcare Providers has been published today alongside the Review of Childcare Costs

So we have been treated to the Autumn Statement today all wrapped up with a Spending Review and a Funding Review – although no mention of the latter was made by George Osborne today just the overall amount. It was actually published after the 2nd reading of the Childcare Bill started in the Commons. A situation that was noted by an opposition MP as ‘government playing games’. They state they will be investing £1 billion extra per year by 2020 but with only £300 million more for the 30 hours it is unlikely to lead to any significant increase for our rates. We must therefore hope that re-distribution will resolve some of our funding gap.

Parents will need to work a minimum of 16 hours per week (or earn the equivalent of  16 hours x National Living Wage) which is double the original proposal so this effectively reduces the potential number of eligible families.

Sixth Form colleges can convert to academies – and therefore can remove their VAT liability for the education services – we must campaign harder in our sector for an equal right for no VAT – perhaps via a formula linked to our number of funded hours.

There was no mention in the speech of a change of formula for Early Years. However, there is some more back up to House of Commons Speech that has been published by the Department of Education today which puts a little more information into the arena. Apparently Early Years will form part of the new National Fairer Funding Formula – which is indeed good news.

Interestingly it also talks of £50 million for capital investment for nurseries, I wonder if this is aimed at the PVI sector or the School sector though.

I will be listening with interest to the rest of the questions currently being answered by George Osborne and the Bill reading to come…

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About the author: Tricia Wellings

Tricia Wellings
Tricia qualified as an NNEB and achieved a BA (Hons) in Early Education Studies and Early Years Teacher Status before getting her PTLLS and CTTLS in order to teach adults. She has run a group of day nurseries for 16 years and trains her own teams. Her knowledge of the sector is second to none and she continues to keep herself updated through regular meetings with Local Authorities, Ofsted Big Conversation, PVI Groups and Conferences.

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