Agenda item

This report provides further information to the Schools Forum on the early years funding adjustment applied in 2020-21 to ensure no provider rate drops by more than 1.5% compared to 2019/20.  The report also demonstrates how the criteria for split site funding has been met for the schools in receipt of this funding for 2020-21, and illustrate the impact of introducing a cap on this funding.

The Schools Forum received an update report from Dena Aly, (Senior Finance Analyst) that provided further information on the Early Years funding adjustment, which had been applied in 2020-21 to ensure no provider rate dropped by more than 1.5% compared to 2019/20.

The report also demonstrated how the criteria for Split Site funding had been met for the schools in receipt of this funding for 2020-21 and illustrated the impact any potential introduction of a cap may have.

After reviewing the report, discussions that followed highlighted the following key points:

Ø   The local Early Years Funding Formula had been set for 2020/21 with the endorsement of Schools Forum in February 2020. This included increases to the funding rates allocated to Brent for 2-year-old and three and four year-old provision. The Local Authority continued to retain 5% of the total allocated to Brent, with 95% allocated to providers.

Ø   The base funding rate to providers made up 90% of allocated funding. The deprivation factor allocated the remaining 10%, based on the Income Deprivation Affecting Children Index (IDACI), which was updated in 2019. Prior to this, the index had not been updated since 2015, meaning that individual provider rates would have changed more significantly compared to recent years. Therefore, for 2019-20, the deprivation allocation had been adjusted to ensure that no provider rate dropped by more than 1.5% compared to 2019/20, while ensuring that 10% of the rate was still allocated for deprivation overall. This adjustment had been for one-year period only.

Ø   The Forum noted the summary impact of the Early Years minimum funding adjustment, as detailed in section 3.3 of the report, with the Forum keen to review the data available on a setting by setting basis (including what it would be possible to provide in relation to PVIs) in order to assist in supporting the ongoing monitoring and strategic planning process in relation to application of the formula.

Ø   In relation to the Early Years update, concern was also expressed in relation to the reconfiguration of the length of term (14 to 13 weeks) and lack of consultation with early years providers, given the significant impact on the sector.  In response, Brian Grady confirmed that he was aware of the concerns raised and apologised for the delay in the issue being responded to, which he advised he would raise with the Early Years Team.

The discussion then moved on to consider the update in relation to split site funding, with the following issues raised:

Ø   As clarification, the Forum was advised that they were not being asked to consider the introduction of any cap at the meeting, with the report providing an opportunity to explore the potential options available in advance of any of final consultation being undertaken.

Ø   The Forum noted there were currently four schools receiving full Split Site funding and one school in receipt of partial Split Site funding with the current criteria and funding allocation in Brent having been agreed in 2016.  The current formula comprised a lump sum of £151,847, plus £113.70 per pupil. Where schools partially meet the criteria, they may attract a reduced lump sum of £50,000.

Ø   Members noted the assessment of current split site funding allocations against criteria as detailed in section 4.4 of the report along with the current Split Site allocations, as detailed in Appendix 1 of the report.  It was highlighted that the current formula did not include a cap on the level of funding that could be allocated to individual schools.

Ø   The Schools Forum were reminded that it had already been agreed to establish a Working Group to look at Spilt Site funding in more detail with any changes being considered needing to include clear, transparent and objective criteria.  Rather than considering the recommendation within the report, Brian Grady advised that the Forum were being asked to formally establish the Working Group, which he would chair in order to consider the impact of the split site funding options identified, including any capping mechanism.  The Forum were keen to ensure membership of the Group included representatives from those schools receiving split site funding.

As a result of the discussion, it was therefore RESOLVED

(1)       That the Schools Forum note the report.

(2)       To formally establish a Working Group to review the potential impact of the split site funding proposals identified within the report.  The Working Group to be chaired by Brian Grady with representatives from those schools currently receiving split site funding to be invited to join as members (including Gerard McKenna).  The timescale for reporting back to the Forum to be agreed by the Working Group in consultation with relevant school leaders.  (Action 66: Brain Grady)

(3)     That the concerns highlighted in relation to the reconfiguration of the length of term (14 to 13 weeks) and lack of consultation with early years providers be raised with the Early Years Team in order to highlight the significant impact on the sector and ensure an appropriate response was provided outlining the reasons for the decision (Action 67: Brain Grady / Early Years team)

(4)      Further review be undertaken regarding the provision of Early Years Funding Formula data on a setting by setting basis for the Schools Forum (including what it would be possible to provide in relation to PVIs) in order to support the ongoing monitoring and strategic planning process in relation to application of the formula.  (Action 66: Brain Grady/Dena Aly/ Olufunke Adediran and Members of the Early Years Forum)