Agenda item

Jill Lecznar (Head of Finance, LBHF) presented the report that detailed the initial allocation of Early Years Block funding for 2019-20 and outlined the impact of this on the implementation of the participation model for all providers. The focus of the paper is on the funding of the 3 and 4 Year old offer. She noted that officers were recommending a universal rate of £6.20 and a maximum deprivation factor of £1.30.

The Chair asked officers to summarise what the impact of these changes were. Jill said it was difficult to model impacts on providers due to the changes in the delivery models from April. Officers had provided modelling for different options – e.g. a participation model - at previous meetings. Tony Burton added that previous modelling showed a worst case scenario on income – but the feedback from schools was that it’s very differential as it depended on the service and many other factors. The workshop on Tuesday evening showed a mixed picture – with some providers seeing this as an opportunity and others facing income risks.

Officers noted that, compared with the draft paper presented at the workshop, there had been changes – both the base rate and deprivation rate had been reduced by 10p to increase the CP/CiN fund to the level required and to create a contingency budget of £168k to deal with the risks of transition.

A member asked if the reduction of 10p on the deprivation rate was the minimum it could be reduced by – or if there was more room for manoeuvre. Officers said they thought this was the minimum – but it was an estimate.

The Chair noted that the issues with 30 hours was well known. The difficulty was that the funding change was coming mid-year. School's should have transitioned models years ago. Members also noted that it was hard to consult with families when you don't know who will choose your school. Concerns were raised about the families who needed the most support.

Officers noted they were working closely with the schools most affected. Michele Barrett (Vanessa Nursery and Randolph Beresford EYC) said the issue for her provision was they dealt with younger children who required more intensive supervision – and more vulnerable children who needed a high quality staffing model.

Dave McNamara (Governor at Randolph Beresford) said he felt the proposals, particularly the removal of the nursery supplement, were coming too soon. The shortfall for Randolph Beresford, around £300k, was too great given the timeframe. He asked that mitigations were considered by the forum – and suggested some contingency funding to allow them to move to another model.

After discussions, the Chair proposed a compromise – a further reduction of 5p on the deprivation rate for 19/20 to provide additional contingency funding for one year. Officers would model this proposal to determine its viability.

RESOLVED

That Schools Forum agreed to proceed with the budget model for 2019/20 as outlined in this paper and per key points below:

·         Base rate funding on participation basis at £6.20 per hour for both the universal and targeted childcare offer, an increase in the basic rate of £0.10 per hour on 2018/19 funding rates.

·         Supplementary deprivation payments on a sliding IDACI scale and subject to cap of 10%. Estimated average cost of £0.69 per hour based on historic cohort data.

·         Officers to model the impact of reducing the deprivation rate by £0.15 per hour versus the 2018/19 level.

·         Establishment of £300k SEN Inclusion budget for Early Years to promote inclusion and facilitate transition.

·         Establishment of a £600k budget to provide additional childcare to the most vulnerable children in Hammersmith and Fulham following an assessment of need arising from Child Protection or Children in Need. Further to this, the provision for £1.50 per hour additional supplement for CP/CiN.

·         Establishment of a £168k contingency fund to cover transition to the participation funding model and to manage associated risks of change.

·         Continued application of Early Years DSG to fund central functions up to the 5% cap set by the regulations (estimated at £666k in 2019/20).