Updated guidance reminds us of the conditions attached to
two-year-old funding, while the level of interest from schools is
growing, says James Hempsall.

The Government believes the role of Ofsted-rated good and outstanding settings is key for the delivery of high-quality early learning.

The Department for Education's updated guidance (Early Education and Childcare -Statutory Guidance for Local Authorities) affirms local authorities should fund all settings that Ofsted judges to be good or outstanding and that wish to provide the two-year-old offer.

For these settings, the time is ripe. In offering twos places, you have the following obligations: the places must be free of charge, they must be delivered flexibly to meet the needs of parents, the funding must be used properly and in accordance with any arrangements made with providers, settings must 'actively promote fundamental British values', provision must meet the needs of disabled children and children with special educational needs, and children must be safe.

Many places have been delivered by group settings in the private, voluntary and independent (PVI) sector.

What we expect to happen next is for childminders and schools to also move into offering new places.

I was in Herefordshire recently, and they like other local authorities tell me the level of interest from schools is growing. In addition, the ability of childminders to offer a flexible service, responsive to parents' changing employment patterns, while providing a home-based learning environment is vitally important. It is also good to see how all types of provider are joining together to provide integrated services.

Funding should be given without it being subject to any other local conditions. A local authority cannot refuse to fund a setting if it holds a good or outstanding grade (unless the setting is under investigation by statutory agencies). Ofsted 'requires improvement' (satisfactory) settings can be funded if the local authority considers there to be a sufficiency need.

If you feel you can deliver the twos offer, you should make contact with local authorities that fund children who access your provision. Local funding rates vary, but all local authorities must follow statutory guidance.

James Hempsall is director of Hempsall's @jhempsall, www.hempsalls.com.