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Nursery Education Funding: PVI and state sector anomaly exposed

New evidence reveals the marked difference in funding that private and voluntary nurseries and maintained providers receive from local authorities for the free early years entitlement.

A table on the DCSF website clearly shows anomalies in the split by local authorities between the maintained and PVI sectors.

The National Day Nurseries Association said the evidence shows for the first time the true extent of funding discrepancies throughout England, and highlights why reform is vital.

The NDNA is urging local authorities and Schools Forums to find ways to increase funding levels for providers in light of the recent cost analysis process.

NDNA chief executive Purnima Tanuku said, 'These figures show clear differences in how much nursery education funding is allocated across the PVI and maintained sectors. In many cases, maintained settings are receiving a significantly higher level of funding per pupil than private and voluntary nurseries, which many providers who are struggling with current funding levels will find unfair.

'Due to differences in the way the maintained sector counts children and prepares budgets, it is possible that these settings are receiving funding for sessions that are not being delivered.'

Gary Jarvis, finance officer for children, schools and families at Camden Council, told Nursery World the funding per pupil for maintained settings was based on a full school day, while that for PVI settings was sessional. 'The figures are derived from various returns to Government. The main cost difference will be the difference in hours provided and the fact that schools must have teachers in their nurseries.'

In Barnsley the amount shown per pupil in a maintained nursery is calculated on the actual number of children accessing a place and does not take into account any empty places. Sue Bramall, the council's senior officer for school organisation, said, 'Maintained nurseries are "block funded" according to their capacity. This ensures each nursery has the budget to employ a qualified nursery teacher and a nursery nurse on a staffing ratio of 1:13.

'If all places within maintained nurseries were filled (2,962), the amount of expenditure per pupil would be £1,609.'

Further information:

http://www.dfes.gov.uk/localauthorities/section52/subPage.cfm?action=sec tion52.default&ID=87

EXAMPLES OF EARLY YEARS ENTITLEMENT
FUNDING IN LOCAL AUTHORITIES IN ENGLAND

Local Authority Funding for Planned expenditure for
PVI settings* maintained provision *
Barnsley £1,506 £2,173
Brent £1,492 £2,263
Camden £1,283 £2,373
Cumbria £1,563 £932
Warwickshire £1,493 £2,149
* pounds/per pupil
Source: la benchmarking tables 2006-07: free entitlement to early years
table