Editor's view - The going rate

Monday, March 23, 2015

The new financial year is just about to start, and nurseries are hearing from local authorities about the new rates for the 15-hour funded places for three and four-year-olds.

Except that in many cases the rates are not new at all - they are remaining the same. Other local authorities are giving a very small increase and some are even cutting the rate (see News, pages 4-5).

In many areas, the hourly rate has barely changed over the past five years and has certainly not kept up with inflation and the rise in costs.

Recent reports from the Pre-school Learning Alliance and the National Day Nurseries Association (not to mention years of protests from individual settings) about inadequate levels of funding have effectively been dismissed by Government, which is now taking the position that the money is sufficient if only local authorities pass enough on.

It is hard to see how this can be justified when rates have been so stagnant and costs have risen so much.

And this financial year will see further pressures, with the National Minimum Wage rates increasing significantly in October and new pension responsibilities coming in. Higher staff qualifications are the factor most likely to improve quality and this continuing underfunding is a barrier to change.

At least the Early Years Pupil Premium will provide a little extra cash, even if £300 or so is well below the school rate per pupil.

Our essential guide to spending the EYPP (pages 21-24) looks at what early years settings need to take into account and how they can use the EYPP in the best way to show that they are improving outcomes for disadvantaged children.

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