Early Years Funding Formula for Financial year 2023 to 2024

Overview

The Education and Skills Funding Agency (ESFA) published the Early Years funding allocations for 2023/24 on 16 December 2022. 

This consultation covers the proposed Early Years funding rates for Cumberland Council and Westmorland and Furness Council from 1^st April 2023.

We would welcome your views on the proposed increases to the Early Years Funding Formula.

Deadline for responses is 10 February.

What we are proposing

2 year old funding

It is proposed that that the £0.06 increase in the 2 year olds hourly funding rate is passed directly to early years providers by increasing the 2 year olds hourly funding rate from £5.57 to £5.63 with effect from the start of the Summer term 2023.

3 and 4 year old funding

The base rate allocated to the councils, includes the roll-in of the Teacher Pay and Pensions Grants (TPPG) which previously were allocated to eligible schools and academies separately. The base rate has therefore been adjusted to take into account these grants , which are proposed to be allocated separately through a new Early Years Funding Formula Quality supplement.

Base rate

It is proposed that £0.17 increase is passed onto all early years providers by increasing the 3 and 4 year old hourly base rate in the Early Years Funding Formula from the current level of £4.31 to £4.48 (3.9%) with effect from the start of the Summer term 2023. 

Deprivation

It is proposed that the deprivation hourly supplement, which is currently £0.20, is increased by the same proportionate increase (3.9%) to £0.21 with effect from the start of the Summer term 2023.  

Proposed methodology for allocating the former TPPG to School Early Years Providers

Schools and academies

It is proposed that a new quality supplement is introduced in 2023/24 to allocate funding to those schools and academies that previously received TPPG separately in 2022/23 on per head amount of £179.88 using the January 2023 census data. Under this methodology no school or academy that previously received this grant would be any worse off.

Maintained Nursery Schools (MNS)

It is proposed that the current lump sum allocated to each MNS is increased by the same level of TPPG that they received in 2022/23.