From April 2017, local authorities in England will be changing the hourly rates they pay providers to deliver funded places for 3- and 4-year-olds. The new rates will be based on the new Early Years National Funding Formula, which is changing the way that money is allocated from central government to local authorities, and from local authorities to providers.
The Government has published the rates it thinks local authorities should be paying providers based on this formula (PACEY’s summary version is here). However, local authorities still have a limited amount of discretion over the rates they will pay, and are currently in the process of finalising how much providers will receive in their area. Rates need to be decided by the end of February at the latest so that they can go into effect by April.
PACEY is advising all members to get in touch with your local authority as soon as possible to find out what the new rates will be in your area. If you do not think the rate in your area will be high enough to enable you to deliver funded places of up to 30 hours per week, we urge you to let your authority know. The 30-hour pilots have shown that provider input can make a big difference to the final rate. Do bear in mind that the rates do not include food, drink and other consumables (nappies, wipes, etc.), or special classes and trips.
Do get in touch with PACEY’s policy team if you have any questions about the new funding rates or 30 hours free childcare, or if we can support you in any way.
For more information:
Read our FAQs on early funding
Read our blog about 30 hours