Three and Four Year Old Funding Reform - Childcare Provider Information
Early Years Funding Reform
Funding for the free entitlement for three and four year olds is going to be reformed over the next two years.
The Government's Ten Year Childcare Strategy 
intends to extend the free entitlement for parents, to 15 hours flexible childcare for 38 weeks per year, by 2010.
There have been concerns from childcare providers nationally that this could cause a problem with the financial sustainability of private organisations.
The Department for Children, Schools and Families held a consultation concerning the funding arrangements, together with other school funding. The results of the consultation , including the key decisions, are now available.
All local authorities are now required to:
- analyse the cost of delivering the free entitlement in Private, Voluntary, and Independent childcare settings.
- establish a mechanism to consult with providers about the local changes to early years funding (that could be a sub-group to your Schools Forum).
- consider introducing a formula method of funding earlier than 2010 wherever possible and to be consistent with the counting of children across the Private, Voluntary, Independent and maintained sectors.
- consider options for increasing budget stability for Private Voluntary and Independent settings
As childcare providers, we asked you to complete a Survey relating to the costs of your childcare provision.
The analysis data will be published in early 2008 and be available to you via the Localities and Childcare Team.
The data will be used when making decisions about the funding for April 2008. It will help us to review the way that the Borough funds the provision for three and four year olds attending a childcare setting. It is envisaged that a revised formula for the funding will in place by 2010.
As Early Years Providers, you will be consulted about the method of funding we provide through a newly formed 'Early years Funding Sub Group to the Schools Forum'.
More information will be available as the reform develops. Alternatively, you can contact us for further details.
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