Increase in hourly funding rate for childcare providers in Suffolk

Published

The hourly base rate paid to childcare providers in Suffolk will increase from £3.87 per hour to £4.00 per hour from April 2018.

The decision comes following a meeting with Schools Forum representatives on 11 January 2018.

There will also be changes to the allocation of Deprivation and Inclusion funding for eligible children. From April, Deprivation funding will be allocated based on the number of hours a child attends a setting. The eligibility criteria for this measure will remain the same. Inclusion funding will be targeted at the needs of individual children. This means the funding will be targeted where it is most needed. The total amount of funding the council allocates for Deprivation and the Inclusion Fund will remain the same.

Suffolk is one of only 25% of authorities to see a reduction in funding following the Early Years Funding Reform and from April 2018, the amount of funding the council will receive from government will reduce further. This means that the council has to consider how best to allocate the reduced resources.

The council currently retains 6.3% of funding received from government to carry out statutory support services for parents and providers. 93.7% is passed on to providers. From April 2018, 96.2% of the funding the council receives from Government will be passed on to providers through the base rate of £4.00 per hour per child, Inclusion and Deprivation funding. This exceed the statutory requirement of 95%. The authority will retain 3.8% to carry out its statutory support services.

Councillor Gordon Jones, Cabinet Member for Children’s Services, Education and Skills, said:

“We are pleased to be able to increase the hourly amount paid to providers to £4.00 per child, despite a reduction in funding from central Government. In order to give providers the highest possible funding rate, 96.2% of the funding we receive will be passed on to providers, exceeding the statutory requirement of 95%. This will include the £4.00 per child hourly base rate, as well as Inclusion and Deprivation funding for eligible children. 

“The fairer allocation of Deprivation and Inclusion funding also means that this money will be going to those children who need it the most.

 “We recognise that more needs to be done. I have tirelessly campaigned for fairer funding from Government, raising the matter with local MPs and the Minister of State for Children and Families. I will continue to lobby the government for fairer funding for children in Suffolk.”