News

EYSFF delay 'threatens nurseries'

Private and voluntary sector nurseries are more vulnerable to closure in the current economic climate now that the Early Years Single Funding Formula has been delayed by a year, the National Day Nurseries Association has warned.

While many in the early years sector believe the delay is necessary toensure the way the funding is distributed does not threaten maintainednursery schools, the NDNA said that funding for the free entitlement inPVI settings was at crisis point.

The organisation said the Government must look at ring-fencing funds asa step towards resolving issues with the free entitlement funding.

Last week, children's minister Dawn Primarolo told MPs she had decidedto postpone bringing in the EYSFF until April 2011, after a DCSF surveylast month revealed that two-thirds of local authorities were not readyto implement it from next April.

Giving evidence to the Children, Schools and Families Select Committee,Ms Primarolo said, 'I am minded to postpone, under certaincircumstances, with certain conditions, the implementation of the singleformula.'

The announcement comes amid concerns that the move to a formula based ontake-up rather than places threatens the sustainability of maintainednursery schools (News, 8 October).

Last month, South Gloucestershire local authority also said that theformula threatened nursery classes in some primary schools (News, 26November).

But NDNA chief executive Purnima Tanuku said, 'Ultimately, delaying theformula will only mean that the road to achieving fairer funding islonger for private, voluntary and independent providers. If a delay isimplemented because local authorities report it is not working, then theGovernment needs to explore why and what action needs to be takencentrally and locally to resolve the issues.

'Many PVI providers have put a huge amount of effort into ensuring theformula can work, including sitting on groups and sharing informationabout their costs. Funding for the free entitlement is at crisis point,and there will be many questioning how, with funding not yet resolved,they can deliver a flexible 15-hour offer.'

Feedback from local authorities, providers and parents to the Governmentshowed that there were increasing concerns about the impact of theformula on providers, and the complexities of introducing it alongsidethe extension to the 15-hour entitlement.

Ms Primarolo told MPs that information that had been collected fromlocal authorities had revealed 'a huge variance in approach andpractice'.

While there was a consensus the idea of a formula was right inprinciple, the minister said only around a third of local authoritieswere 'ready to go' while others were 'struggling'.

Ms Primarolo said that the funding formula was announced in 2007 as away of bringing 'greater transparency and accountability to the system',but that '2007 was a different time economically' and that the recessionhad brought a number of challenges for local authorities.

However, she said the Government would invite those local authoritieswho were ready to implement the Early Years Single Funding Formula totake part in pathfinders and to use their experiences to share goodpractice with other areas.

She added, 'We will seek in the intervening period - the delay of a year- to get ourselves to a sensible position, working with localauthorities and the PVI sector to have an implementation for everyonethat will work.

'I am not blaming local authorities or the PVI sector here, but amsaying that this is a big challenge and that we have to get itright.'

WAS THE MINISTER RIGHT TO DELAY THE EYSFF?

YES

CATHERINE FARRELL, joint chief executive, National ChildmindingAssociation

During the pilot phase, differences in approach across local authoritiesmeant there were variations in hourly rates for childminders. In someareas, rates offered were lower than average market rates. Theapplication of the EYSFF should take into account the unique waychildminders deliver the free entitlement, for example, the smalleradultto-child ratios. NCMA looks forward to working with the pathfinderlocal authorities to establish a consistent and transparent approach tofunding childminders and hopes that wider implementation will deliverparity across authorities.

MEGAN PACEY, chief executive, Early Education

In local authorities there is a continuing picture of chaos andconfusion. The majority of areas are still struggling to set formulaethat ensure the sustainability of many of the high-quality maintainednursery schools and classes. Taking the time now to make sure we getthis right is absolutely vital if a decade of investment benefiting themost disadvantaged children and their families is not to be undone, andthe highest quality nursery provision is not lost.

NEIL LEITCH, director of communications at the Pre-school LearningAlliance

It is refreshing the Government has been brave enough to accept thereare fundamental problems. The last thing the sector needs is for theformula to be implemented then subjected to a series of correctionsbefore it is fit for purpose. The Alliance has expressed concerns aboutpotential flaws in the new formula, especially the struggle faced bysome local authorities to collect the comprehensive data they need tomake sure funding is allocated fairly.

NO

PURNIMA TANUKU, Chief Executive of National Day NurseriesAssociation

The sector has had high expectations for more sustainable levels offunding from the formula and delaying the move is simply delaying fairerand more equitable funding. We will be working to highlight how we mustget this right rather than put it off, which simply risks the viabilityof nurseries further in the current economic climate.