Pre-school Education: Finance

(asked on 12th October 2016) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what distributional analysis her Department has conducted of changes to the early years funding formula; and what analysis her Department has made of which local authorities' funding will (a) increase and (b) decrease as a result of those changes.


Answered by
Caroline Dinenage Portrait
Caroline Dinenage
This question was answered on 17th October 2016

The distributional impact of our proposed changes to funding for three- and four-year-olds on local authorities, and the knock-on impact that this may have on providers, can be found here:

https://www.gov.uk/government/consultations/early-years-funding-changes-to-funding-for-3-and-4-year-olds

Under the proposals on which we recently consulted, three quarters of local authorities would have higher hourly funding rates. No local authority would see reductions in their hourly funding rate of more than 10%, and only 12% of local authorities would see reductions of more than 5%.

As a result of our proposals, indicatively, providers in the vast majority of local authorities can expect to see their average hourly funding rate increase.

We are currently considering responses to the consultation.

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