Pre-school Education: Finance

Department for Education written question – answered on 20th January 2017.

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Photo of Lucy Powell Lucy Powell Labour/Co-operative, Manchester Central

To ask the Secretary of State for Education, what estimate she has made based on the new early years funding formula of the maximum amount of funding each local authority would be able to retain in (a) 2017-18 and (b) 2018-19.

Photo of Caroline Dinenage Caroline Dinenage The Parliamentary Under-Secretary of State for Education

Under our new early years funding reforms, local authorities are required to ensure that at least 93% of their early years funding is passed on to providers in 2017-18 and that at least 95% of funding is passed on from 2018-19. This means that the maximum amount of funding that local authorities will be able to retain (or transfer out of the early years block) will be constrained to a maximum of 7% in 2017-18 (and 5% from 2018-19).

As set out in our Operational Guide for local authorities, compliance will be assessed against the proportion of the Government’s hourly funding rate that is passed onto providers. The Operational Guide can be found at the following link:

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