DfE has today launched a consultation on the new funding rates which will apply for 2-year-olds and under 2s when the new entitlements are introduced in England in 2024-25. The consultation sets out the government’s plans which are in brief:
- A new funding formula for both disadvantaged 2-year-olds and 2-year-olds with working parents. The illustrative modelling suggest this would produce a national average hourly funding rate for 2-year-olds of £8.17, with a range of rates for local authorities from £6.89 to £11.86.
- A new funding formula for children under 2 with working parents. The illustrative modelling suggests a national average hourly funding rate for the 9-month-old up to 2-year-old entitlement of £11.06 with rates for local authorities ranging from £9.33 to £16.17.
- To extend eligibility for Early Years Pupil Premium (EYPP) and Disability Access Fund (DAF) to the new entitlements
- To extend the framework of rules which local authorities apply to creating local funding formula for 3-/4-year-olds to cover the new entitlements including the model of a base rate plus supplements (mandatory for deprivation but others optional) and SENIF. The rules regarding pass-through rates and contingency funds would also apply to the new funding rates, with the pass through rate initially remaining at 95% but at a future date increasing to 97%.
