Councils get guidance on early years funding

The guidance was issued to directors of children’s services last week, along with a letter from children’s minister Dawn Primarolo.

The government is rolling out the new funding model, the Early Years Single Funding Formula, from April next year. It aims to make funding for free childcare fair and transparent across council-run, private, voluntary and independent providers.

Council-run or maintained nursery schools have historically received far more funding than other providers to deliver free childcare. But the new funding mechanism has been heavily criticised as it is set to lead to large budget cuts for the maintained sector, which could force some settings to close.

Every local authority has its own funding formula and is set to consult with providers in the next couple of months to meet any major concerns and ensure the model is fit for purpose.

The guidance calls for local authorities to consider the role of nursery schools in providing for the most disadvantaged children. It also highlights where supplementary funding may be necessary to cover higher costs such as rent and more qualified staff.

"Such schools generally provide a high quality of education and many are placed in areas of high deprivation where the early years needs of children are greatest," said Primarolo in her letter.

She added that authorities should "consider the effects of the proposals on their nursery schools as a priority over the autumn consultation period, and make necessary amendments to formula and transitional arrangements in time for full implementation in April 2010".