The Forum then heard from Rachel Setter, Divisional Director of Learning and Partnership Hubs, who presented a paper on the changes to Early Years funding moving forward. paper is looking at the uplift of the current EY entitlements and the expansion to the two year olds from April 24 and children under nine months from September 24 for working parents. The main points  around the expansion means that the current retained 5% for staffing and systems costs would be considerably increased. Therefore, we've reduced that down to 3.5% with the aim to work towards reducing that further to 3% as the expansions increase in the following financial year. We have kept the ALFI payments and disadvantaged payments at the same rates and as detailed in the proposal around the ALFI payments. The reason behind that is to include early years provisions that are within schools to be able to access that they haven't been able to access historically and also to relieve the burden from the high needs block. So although we're proposing that we retain that £100k for this financial year while we monitor the demand and the potential increase on the ALFI budget, the aim is to then not need the £100k in the future, which will obviously reduce the pressures on the high needs block.

Tim asked whether are we actually going to pay out deprivation payments on the basis of those who are those eligible 2 year olds who live in the appropriate post codes – Rachel clarified that this was the case. Tim also asked whether we could simply take the £45K out of this year's underspend and go down to 3% now, meaning there will be no further change in future years. Rachael Williams explained that if we are planning to add to our debt, then forum members would need to identify where they don't want to have £45k worth of spend taking place between now and the end of March because we cannot go over our safety valve agreement. We've got an investment that will come back as a result of not going over our financial window that we have promised to the ESFA, so Forum have got the decision there that actually we'll have that inward investment to write off the deficit position. So if if that decision was taken, then £45k worth of spend in the higher needs block would need to be identified as a saving and we'd need to be able to enact that straight away to not put us in that position by the 31st of March.

Lawrence raised concerns around the additional funding for 2 year olds and where that extra money would come from, and whether it means we can still support the same numbers in proportion. Rachel Setter said that the reasons for not moving directly to the 3% and keeping the £100k is so that we have this year to really monitor and consider what that will that demand will be and if it is reaching the right people.

Following discussions, Sarah asked members to vote on the  proposal to retain 3.5% to pay for systems (Synergy) and staff costs, including Early Years Finance and Business Manager and Early Years Advice and Guidance Services. Voting was as follows:

For:          9          unanimous

Against:   0    

Abstain:   0