Councils announced for second pilot of early years formula

The Early Years Single Funding Formula (EYSFF) was created by the government to ensure that all providers are funded fairly for the level of free childcare they provide for three- and four-year-olds.

It was originally due to take effect in April this year, but the start date was pushed back a year after serious concerns were raised that the formula had been rushed into place and could lead to dramatic cuts for many council-run settings.

Now due to take effect in April 2011, 56 areas that felt they were in a position to deliver the model now are further piloting the formula.

"The EYSFF will enable local authorities to better manage and plan childcare provision to benefit families across their area," said children’s minister Dawn Primarolo.

"Many local authorities are doing excellent work with early years providers to prepare for the new formula, and I’m really pleased that a third of local authorities are ready to implement from 2010."

Primarolo insisted the formula is not designed to disadvantage maintained nurseries or to enable private nurseries to make large profits.

But she added: "Local authorities have a duty to ensure that provision in their area meets the needs of families and we will continue to support local authorities who may need extra help."

According to Early Education, which represents the interests of council-run settings, some of the providers who have raised concerns are from the areas announced as pathfinders.

But chief executive Megan Pacey said she was ready to work with these authorities. "Along the way there have been queries from some settings in some of these authority areas. But these local authorities have clearly met the criteria outlined by the government," she said.

"It is a pretty rigorous process so at this point the best thing we can do is look at the solutions and opportunities these authorities have found and see what we can learn."