At the end of October 2019, the Department for Education (DfE) announced a boost to the Free Early Education Entitlement funding. This means that rates will rise up to 8 pence per hour per child. This is along with an extension of supplementary funding for nursery schools for 2020 to 2021. Essex County Council (ECC) has had its allocation confirmed. I'm writing to let you know what these rates will be from 1 April 2020.
The DfE has allocated us an increased funding rate of 8 pence per funded hour for all the FEEE rates. They will allow all local authorities to keep up to 5 per cent of the funding allocation. This is to cover the costs of administering the FEEE funding. But in this instance, we will pass the full 100 per cent of the FEEE funding rate increase to childcare providers. We will increase all the FEEE rates by 8 pence an hour. This is on top of the 2 pence per funded hour increase that we implemented in April 2019. We won't be receiving any extra funding from the DfE to do this. Both increases together mean that you will receive a 10 pence per funded hour increase.
From 1 April 2020 the funding rates will be as follows for all childcare providers across Essex:
- FEEE for eligible 2-year olds, £5.28 per funded hour
- universal FEEE for all 3- and 4-year olds, £4.32 per funded hour
- extended FEEE entitlement (30 hours) for all eligible 3-and 4-year olds, £4.32 per funded hour
- maintained nursery schools of which there are two in Essex, £6.29 per funded hour. This comprises of the FEEE rate plus the additional DfE supplementary funding for maintained nursery schools
EYCC Sufficiency and Sustainability Manager