Early Years Deprivation Funding Consultation £1.2m

Closed 31 Jul 2022

Opened 6 Jul 2022


Sheffield City Council would like to consult with all Early Years childcare providers in the city. We seek your views on which method you would like us to implement when allocating the £1.2m Deprivation Funding for all 3&4-year-old Funded Early Learning (FEL) pupils from 1 April 2023.

Funding Guidance

Deprivation funding is a mandatory factor in the Early Years Funding formula which cannot exceed 10% of the total planned funding to providers.

The calculation of the local deprivation formula was last reviewed by the Early Years Working Group which is a subgroup of the Sheffield Schools Forum in March 2019. The deprivation funding rate was last increased in the financial year 2020/21 from £0.40 to £0.44 per pupil hour for eligible pupils. 

Summary of options:

Model 1 – 100% IDACI Deprivation 2022/23 (Current model)
This is the current deprivation funding method that distributes the £1.2m deprivation funding to all Sheffield Early Years providers. This method allocates 100% deprivation funding at 44p per pupil hour to all Lower Super Output Areas (LSOAs) in Sheffield that are in the 30% lowest ranking areas of the country.

Model 2 – 100% Early Years Pupil Premium (EYPP)
This method allocates 100% deprivation funding to providers based on actual EYPP funding paid to providers in Summer 2021, Autumn 2021 and Spring 2022.

Model 3 - 80% IDACI & 20% EYPP
This model is based on allocating deprivation using 80% of funding via IDACI and 20% based on EYPP funding paid to providers in Summer 2021, Autumn 2021 and Spring 2022.

The Early Years Working Group has recommended that we continue to implement the existing IDACI funding Model - Model 1. This is because it protects the economically fragile PVI sector and directs funding where its most needed to vulnerable families in the most economically deprived communities that providers serve. The implications of implementing models 2 or 3 could de-stabilise the PVI sector which could lead to a lack of childcare places for families in Sheffield.

Out of 154 local authorities (LAs), 93.5% use some element of the IDACI distribution funding method and 6.5% use the EYPP apportion method.

Please see the downloadable Related Document below for more information on the current deprivation funding factor in Sheffield and the detailed options, along with the link to the full Government Guidance.

Why your views matter

The Early Years Working Group agreed in March 2022 that a small working group be set up to explore alternative funding models to address how Sheffield calculates the Sheffield Deprivation funding factor for all 3&4-year-old FEL pupils as concerns were raised that the current IDACI funding method lacks transparency and is over complicated.

We would like you to vote for what you believe is the fairest allocation method for all Sheffield Early Years providers and the one that offers the most benefits to pupils and families, targeting funding where it is most needed.

The consultation will be open until 31 July 2022 and the Early Years Working Group will make recommendations to the September Schools Forum for approval based on the outcome of this consultation

We are aware of the financial pressures facing the Early Years sector and we will continue to lobby the government on your behalf.


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