The early years single funding formula

Book excerpt: The Early Years Single Funding Formula is intended to replace the different methods currently used to fund early years settings in the maintained sector and in the private, voluntary and independent (PVI) sector. Each local authority will in future use the same criteria for every setting in its area when allocating funds for education and care provided under the free entitlement for three and four year olds. But the Formula has resulted in winners and losers, and the greatest losers will be maintained nursery schools, which provide a quality of education and care which is very high and sets the standard for others to follow. Overall the difficulties encountered so far with the Single Funding Formula have arisen because of the way in which it has been implemented, rather than because of the concept. Local authorities were encouraged to offer settings a supplement to the basic hourly rate of funding to recognise high quality provision, but many have not done so. A quality supplement should be made mandatory. The Government was correct in deciding to defer full implementation until April 2011 and the year's delay must be used to restore stability and to rework funding formulae where necessary. Sir Jim Rose's proposals to encourage entry to primary school in the September following a child's fourth birthday will have far-reaching consequences for early years funding, but blur the distinction between early years and primary education. The Government should examine whether a unified funding system should be introduced for all children aged from 2 to 11 years old.