Agenda item

Universal nursery provision for 3 and 4 year olds was made available in 1998 through the allocation of government funding to local authorities; and the inclusion of the private voluntary and independent (PVI) sectors as nursery providers. All children aged 3 and 4, whose parents wished to take up the offer, were funded to receive 12.5 hours of nursery provision, equating to a part-time place. Government only provides funding for part time places in both sectors. Changes to government legislation on the number of hours to be provided, and on funding arrangements for nursery places for 3 and 4 year olds, have initiated a review of current arrangements in Brent. It is apparent that historic arrangements in place have led to inconsistencies in access to full-time and part-time places across the borough. In order to achieve transparency in allocating resources, and effectiveness in raising standards for all children, and narrowing the attainment gap between them, a new process for funding using a local single funding formula (SFF) and allocating early years (nursery) places has been developed.

Mustafa Salih (Assistant Director, Children and Families) introduced the report and answered questions from the Committee on the new process for allocating and funding nursery places. He explained that universal nursery provision for three and four-year olds had been made available in 1998 through the allocation of government funding to local authorities and the inclusion of the private, voluntary and independent (PVI) sectors as nursery providers. All children aged three and four, whose parents wished to take up the offer, were funded to receive 12.5 hours of nursery provision, which was the equivalent of a part-time place. Legislative changes on the number of hours to be provided and on funding arrangements for nursery places for three and four-year olds had led to a review of the arrangements in Brent, arrangements which had themselves led to inconsistencies in access to full and part-time places across the borough. In order to achieve transparency in allocating resources and effectiveness in raising standards for all children, as well as narrowing the attainment gap, a new process for funding and allocating nursery places had been developed, based on the use of a local single funding formula (SFF).

This was a complex area, and the authority had been working with schools and private providers for a year. A consensus had been reached, and the implementation of the SFF was a national development, requiring implementation by April 2010. Hourly rates had been arrived at, with supplements agreed relating to deprivation, flexibility and quality. The impact of the changes on providers had been analysed. The next stream of work would be to look at the allocation of full-time places, which was a Brent issue, rather than a national one. Historical and ad hoc arrangements had prevailed in the allocation of full-time places, but the funding formula would move the authority to a more consistent approach. As the government funded only 12.5 hours of nursery provision, the remainder of any full-time place was subsidised by the rest of the schools budget, so a coherent and transparent way of allocating full-time places was needed. Currently more places were offered than would be justified if assessed on the basis of need. An easy-to-understand basis was needed for applications for funding full-time places. In view of the fact that schools might lose funding as a result of the changes, the authority was working with organisations to ensure they understood the implications. The government was also aiming to introduce a means whereby parents could pay for the non-funded part of the full-time place.

The next steps included organising open days for providers, with a view to having the new funding arrangements in place by April 2010. Keen to minimise funding turbulence for providers, the authority was proposing a transition period of three years. Currently 4,635 children – of whom 1,161 had a full-time place – benefitted from free entitlement. Data from the Council’s revenues and benefits service suggested that there were currently 1,920 children eligible in households claiming income support. Currently only 585 of the 1,920 were in full or part-time places. The Council’s revenues and benefits service data suggested that, of the 4,635 currently receiving free entitlement, only 585 would be eligible for a full-time place, compared to the current 1,161.

Asked how many full-time places were wanted for which parents were prepared to pay in the maintained sector, Mustafa Salih informed the Committee that this was not yet known. Officers were visiting schools and looking into options for charging with a view to offsetting the loss of funding. Each school would be different.

Responding to members’ concern that there would need to be a system of checks and balances, Mustafa Salih reported that this was part of the process the authority was working on. The aim currently was to look at the possibility of the admissions team, well used to dealing with applications and eligibility, administering the process. Lesley Fox-Lee (Head of Early Years) informed the Committee that the issues facing Brent were common to other London authorities, who were also dealing with a perception of schools’ reduced offer. Answering a question on the expansion capacity of providers, especially in the PVI sector, Lesley Fox-Lee acknowledged the lack of community spaces, the variability of running costs and the fragility of providers’ running arrangements. She suggested that the Council would need to think more corporately about this.

Members noted that the issue of funding and allocating nursery places would be put before the Executive in January 2010, with approval sought as part of the Dedicated Schools Grant (DSG). The Committee agreed to reconsider the issue before it was presented to Full Council as part of the budget process.

RESOLVED:

(i)            that the report be noted;

(ii)          that the issue of funding and allocating nursery places be brought back to the Committee after being considered by the Executive and before approval by Council.