Special Educational Needs & Disability (SEND) – Funding for Early Years

There have been a number of queries regarding SEND funding for Early Years so we thought it would be useful to provide an update.

From September 2017, there are 3 different funding streams for SEND:

  • Universal Inclusion Fund
  • Targeted Inclusion Fund
  • Individual Inclusion Fund

Universal Inclusion Fund

An additional 4p per hour is being paid for all hours claimed for three- and four-year old funding each term, for the universal and extended entitlement.

Funding for Autumn term is therefore being calculated at £4.02 per hour (£3.98 base rate for Early Years funding and the 4p for Universal Inclusion Fund).

This will be automatically calculated, based on your total termly hours claimed on your Headcount submission.  Payment will be made with your normal headcount payments (AUT2/SUM2/SPR2).

Targeted Inclusion Fund

Some providers will be entitled to this funding.  Using the termly take-up data from Summer 2016 to Spring 2017 the early years and childcare service will look at the total number of two-, three- and four-year-olds in a setting for the year and calculate the percentage of two-year-olds and Early Years Pupil Premium (EYPP) claims.

The triggers and payment that will be calculated are:

  • 25% or greater of two-year-old children will attract 2p for every three- and four-year-old funded hour
  • 15% or greater of EYPP children will attract 2p for every three- and four-year-old funded hour

Some settings may qualify for both of these elements of the targeted inclusion funding.

The funding team hope to complete this exercise in November, notify settings of their annual allocation and make the first payment to providers in December.  Funding for future terms will be made by half term.  Termly payments will be calculated as per the Early Years Funding periods – Autumn 4 months, Spring 3 months and Summer 5 months of the annual allocation.

In future years the funding team are hoping that settings will be notified of their annual allocation in September now that changes to the funding approach have been implemented.  This will enable settings to plan for support for children across the year.

Individual SEND

Termly panel meetings will review applications of children with High Level Needs and discuss if funding will be awarded.  There are 3 levels of funding that may be awarded as follows:

  • Level 1 £480 / £1440 per year
  • Level 2 £600 / £1800 per year
  • Level 3 £750 / £2250 per year

These funding amounts are based on a child attending 15 hours per week / 570 hours per year.  Therefore if the child attends for 30 hours the funding amount would be doubled or if the child attends less hours per week, funding will be reduced.

Due to the various models of funding available for children at settings and to ensure we fund children doing less weekly hours on a stretched offer, individual SEND funding will be calculated in line with their Early Years Funding entitlement and termly claims.

The examples below confirms how funding will be calculated:

  • Level 1 funding (£1440 the year) / by 570 hours (universal entitlement) x termly funded hours claimed for Autumn term (14 weeks x 20 hours = 280 hours) = £707.37 for Autumn Term
  • Level 1 funding (£1440 the year) / by 570 hours (universal entitlement) x termly funded hours claimed for Spring term (11 weeks x 20 hours = 220 hours) = £555.79 for Spring Term

Because the Individual Inclusion Funding is attached to the Early Years Entitlement Funding, payments will be made after the Headcount.