Sure Start Early Years & Childcare Grant (2010-2011)

AGENDA ITEM 16

BOROUGH OF POOLE

CHILDREN’S SERVICES CAPITAL PROGRAMME BOARD

26 AUGUST2010

CABINET

7 SEPTEMBER 2010

SURE START EARLY YEARS & CHILDCARE GRANT (2010-2011): REPORT OF THE HEAD OF CHILDREN AND YOUNG PEOPLE’S INTEGRATED SERVICES

PART OF THE PUBLISHED FORWARD PLAN YES

STATUS Strategic

1. PURPOSE

1.1.The purpose of this report is to:

a)Inform the Capital Programme Board that the Government has withdrawn £825,000 from the Sure Start Early Years & Childcare Capital Grant(SSEYCG) allocation for 2010-11;

b)Set out the existing commitments that need to be funded from the reduced funding allocation;

c)Set out the options for the distribution of the remaining funding to meet local needs;

d)Seek a recommendation to Cabinet to allocate the remaining funding to Parkstone Children’s Centre and the development of a provision in Bourne Valley to meet the sufficiency target in that area, in line with previous agreed prioritisation now the revised grant allocation has been made to the Borough.

1. DECISIONREQUIRED

2.1That the Capital Programme Board:

a)Notes that the Government has withdrawn £825,000 from the Sure Start Early Years & Childcare Capital Grant (SSEYCG) allocation for 2010-11;

b)Notes the existing commitments that need to be funded from the reduced funding allocation;

c)Recommends Cabinet to reconfirm and approve the allocation of the now available capital funding for the development of Parkstone Children’s Centre (subject to planning) and the development of a provision in Bourne Valley to meet the sufficiency gap identified in that area;

d)Recommends Cabinet that any remaining capital funding be permitted to be allocated by the Senior Responsible Officer as recommended by the Service Improvement Assessment Group forearly years and childcare identified needs;

e)Recommends Cabinet also agree that if Parkstone Children’s Centre does not receive planning approval that Bourne Valley provision continue as planned and the remaining capital is allocated according to the already agreed priorities amongst the Private, Voluntary and Independent (PVI) childcare settings.

1. BACKGROUND

3.1Sure Start Children’s Centres

3.1.1The Borough of Poole achieved the phase 2 (2006-8) target of six centres with a reach of 4,563 children through centre development at Canford Heath, Creekmoor, Hamworthy, New Town, Old Town and Rossmore;

3.1.2The target for phase 3 (2008-11) was for Poole to achieve a further two Children’s Centres, plus out reach provision. The capital allocation for phase 3 was originally £1,167,625;

3.1.3Branksome East and Parkstone were identified as the areas where the two Phase 3 children’s centres should be located to achieve full coverage across the Borough, plus extending the capacity of Hamworthy and outreachprojects at Bearwood and Oakdale.

3.2Childcare, Quality and Access

3.2.1Poole was allocated £1,604.316 capital fundingover the three years 2008-2011 to support improved quality and access to integrated early years and childcare for all young children;

3.2.2The Early Years Sufficiency Assessment and a survey of the quality of buildings across the sector undertaken in 2008/2009 and assessed in conjunction, confirmed six group settings as the highest priority and identified 31 settings as priority two;

3.2.3The need for additional childcare places was identified in Turlin Moor and Bourne Valley, requiring new provision to meet sufficiency needs. In addition a further four group settings required financial assistance to relocate in order to maintain sufficient provision in Bearwood, Canford Heath, Merley and Parkstone.

3.3Revised Government Priorities

3.3.1The Secretary of State for Education advised on the 6th July that he was required to reduce “End Year Flexibility” and was looking to identify savings and under-spends. As part of this exercise, Local Authorities were required to report the capital costs against the Sure Start Early Years & Childcare Capital Grant (SSEYCG);

3.3.2During this exercise, Local Authorities were advised to continue planning and tendering processes, but that no new contracts should be signed until confirmation of funding status was received by the Department for Education.All Early Years Group Settings who had submitted expressions of interest in the grant were advised accordingly;

3.3.3The Department for Education have now confirmed revised Sure Start Early Years & Childcare Capital Grant allocations for 2010-11 and advised that it is for LAs to determine how best to distribute the funding allocated to meet local needs. The revised SSEYCG allocation for 2010-11 is £1,293,049 which represents a reductionof £825,000.

1. CURRENT STATUS

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4.1Branksome East and Parkstone were identified as the areas where the two Phase 3 children’s centres should be located to achieve full coverage across the Borough.

4.1.1Branksome East – The contractor has started on site and works are scheduled to be completed in sufficient time for service delivery from January 2011. Council approved capital funding of £549,000 in February 2010 in order to complete the refurbishment and remodelling of the property.

4.1.2Parkstone – A scheme has been designed and submitted for planning approval and the tendering process continues. Cabinet previously approved a capital funding allocation of £280,000. Should the scheme be halted it is anticipated that abortive costs would be circa £25,000. This project could be completed by March 2011 if no further delay in process was met, subject to planning approval.

4.2The Early Years Sufficiency Assessment identified a shortage of childcare places in Turlin Moor and Bourne Valley.

4.2.1Turlin Moor – The contractor has started on site and works are scheduled to be completed in sufficient time for service delivery from September 2010. An allocation of £87,000 has been committed to this project.

4.2.2Merley – The contractor has started on site and works are scheduled to be completed in sufficient time for service delivery from September 2010. An allocation of £310,000 has been committed to this project.

4.2.3Bourne Valley – An under-used community building has been identified as suitable for adaptation for a joint use facility. Condition improvements and internal remodelling works have been identified and the tendering process is about to be instructed. Cabinet previously approved a capital funding allocation of £130,000. This scheme could be completed by March 2011 if progressed immediately.

4.3Wise Owl Pre-school have relocated to Compton Acresand are undertaking improvement works scheduled to be completed in sufficient time for service delivery in September 2010. An allocation of £41,258 has been committed to this project.

4.4The thirty-oneearly years’ group settings identified as priority two were invited to submit service improvement funding applications to address needs identified in the survey carried out in 2008. These settings will be advised formally that there is now insufficient funding to address the priority two improvements, following Cabinets decision.

4.5A summary of the current status of SSEYCG projects approved by Cabinet is set out in the table below:

Project / Contractual Commitment / Current Status
EY Quality & Access Projects (x3) / Completed / 2008-09 / 
Flippers relocation (Priority 1) / Completed / 2008-09 / 
Hamworthy CC expansion / Completed / 2009-10 / 
Bearwood CC Outreach / Completed / 2009-10 / 
Oakdale CC Outreach / Completed / 2009-10 / 
Ladybirds relocation (Priority 1) / Completed / 2009-10 / 
Bearwood relocation (Priority 1) / Completed / 2009-10 / 
Branksome Children’s Centre / Committed / On-site / 
Down in the Woods relocation (Priority 1) / Committed / On-site / 
Turlin Moor (Priority 1) / Committed / On-site / 
Wise Owl relocation (Priority 1) / Committed / On-site / 
Parkstone Children’s Centre / Not committed / Planning submitted / X
Bourne Valley (new provider) (Priority 1) / Not Committed / Site identified / X
Little Stars Day Nursery (Priority 2) / Not Committed / Deferred / X
Canford Heath Church Pre-School (Priority 2) / Not Committed / Deferred / X
St Georges Pre-School (Priority 2) / Not Committed / Deferred / X
Jumping Jelly Beans (Priority 2) / Not Committed / Deferred / X
St John’s Pre School (Priority 2) / Not Committed / Deferred / X
Ashley Cross Montessori (Priority 2) / Not Committed / Deferred / X
Ashley Cross Nursery (Priority 2) / Not Committed / Deferred / X
EY Q&A Unallocated Contingency / Not Committed / Cancelled / X

4.6In meeting the SSEYCG priorities:

• during FY 2008/09 a total of £197,149 was expended,
• in FY 2009/10 a total of £ 70,937 was spent, and
• in FY 2010/11 a total of £972,813 remains contractually committed with works due to be completed by end of September for group settings and January for Children’s Centres, respectively.

1. FINANCIAL IMPLICATIONS

5.1.The revised Sure Start Early Years & Childcare Capital Grant allocations for 2010-11 for the Borough of Poole is £1,293,049. This is made up as follows:

2010-11 Base allocation:
Sure Start Children’s Centres
Childcare Quality and Access / £330,898
£534,772
Carry Forward from 2009-10 / £427,379
Total Revised Allocation / £1,293,049

5.2.The revised allocation is a cut of £825,000 and for most part represents the service improvement funding allocations to early years settings which were approved by Cabinet in July but not distributed pending the Government review of SSEYCG funding allocations for 2010-11.

5.3.The Department for Education has advised that it is for LAs to determine how best to distribute the funding allocated to meet local needs.

5.4.Some projects will have incurred abortive costs. Usually such costs are met from revenue funding rather than capital. However in this case up until the date of the notification letter sent on 12 August 2010, LAs can choose whether to count costs already incurred against the revenue allocation or the revised capital allocation.

5.5.The forecast spend for the financial year 2009/10 was not achieved and re-profiling to financial year 2010/11 was required.

5.6.The capital grant to settings includes VAT where appropriate which is generally irrecoverable due to the status of most settings.

5.7.In addition to the SSEYCG allocation 2010-11 there is £89,846 Borough of Poole Capital allocated to this area.

5.8.It should also be noted that the funding has been allocated due to the Department of Education agreeing and monitoring the Children’s Centre base at Parkstone. Any change in this local allocation could once more put the funding at risk.

5.9.The table below sets out the summary of the current financial position.

Income / 2008-2011
Sure Start Children’s Centres / £330,898
Early Years Quality & Access Capital Grant
SSEYCG Carry forward 2009-10
BoP Capital / £534,772
£427,379
£89,846
Total Funding Available / £1,382,895
Branksome Children’s Centre – 350 Poole Road / £524,131
Merley Preschool / £297,263
Turlin Moor Preschool / £86,583
Wise Owls / £41,258
Minor Awards to Settings / £2,292
Total Commitments / £951,527
Parkstone – 47a Palmerston Road / £280,000
Bourne Valley (New Provider) / £130,000
Total Priorities – Not Committed / £410,000
Available Funding / £21,368

1. LEGAL IMPLICATIONS

6.1.From April 2008 the Council has had a legal duty under the Childcare Act 2006 to secure sufficient high quality childcare to meet the needs of working parents and those returning to training in preparation for work.

6.2.The DfE target for phase 3 (2008-11) is for Poole to achieve a further two Children’s Centres plus outreach to achieve full Children’s Centre coverage across the Borough.

6.3.All Sure Start Early Years & Childcare Capital Grant funding is subject to claw back arrangements depending on the useful economic life of the asset.

1. RISK MANAGEMENT IMPLICATIONS

7.1.Both Branksome and Parkstone Children’s Centres have been formally designated to provide Children’s Centre service delivery. The Borough is currently required to continue this service delivery.

7.2.The Borough has been set a target of eight children’s centres. If Parkstone is not completed the Borough will fail to achieve this target and will be required to deliver Children’s Centre services in a base that has not been purpose built, may not be as fit for purpose and will incur ongoing additional revenue costs.

7.3.It is important to draw members attention to what has happened on the Playbuilder capital allocated. This became un-ringfenced and is now subject to claw back. Officers cannot guarantee this will not happen with this capital allocation.

7.4.The Early Years Sufficiency Assessment has identified the need for additional childcare places in the near future within Bourne Valley. The Borough has a statutory duty to ensure that sufficient childcare is available. There is no guarantee of further capital funding being available in the future to meet this need.

7.5.An opportunity to improve quality and access to child care for young children and their families will nowbe missed, and the Borough will be unable to enhance the facilities across the PVI sector to benefit Poole’s mixed socio-economic profile.

7.6.Any undue delay in agreeing amended funding priorities and reporting these changes to the Department for Education through the Sure Start Unit may result in projects not completing within the funding deadline of March 2011 and the subsequent reduction, or claw back, of a corresponding amount of the revised 2010-11 SSEYCG allocation.

1. EQUALITIES IMPLICATIONS

8.1.The Sure Start Early Yearsand Childcare Grant supports the “narrowing the gap” in attainment and well-being for children from disadvantaged backgrounds and will provide both universal and targeted support services.

8.2.The priorities include the strategic targeting of accessible early years provision for children with additional needs and disabilities.

8.3.All Early Years service delivery will aim to include all minorities and disadvantaged groups and is compatible with the Convention Rights.

1. CONCLUSION

9.1As a result of the Government’s desire to achieve savings, the Department for Education have confirmed a reduction of £825,000 in the Sure Start, Early Years and Childcare Grant for the Borough of Poole, and as a consequence, significant cuts of a similar impact must be found.

9.2Cabinet having already approved funding allocations, must now review their decision and confirm that they still wish to continue according to their previously agreed prioritisation.

Vicky Wales

Head of CYP Integrated Services

Contact officers:

Phil D’Eath

Strategy Manager (Localities & Childcare)

Children and Young People’s Integrated Services

01202 261909

Ian Johns

Asset Management & Sustainability Officer

Children and Young People’s Services – Strategy, Quality and Improvement

01202 633501

BACKGROUND PAPERS

Report to Cabinet – Early Years Quality & Access Capital Grant (July 2010)

Report to Cabinet – Phase 3 Children’s Centre Developments (July 2010)

Report to CS Capital Programme Board – Update on Early Years Developments (April 2010)

Report to CS Capital Programme Board – Phase 3 Children’s Centre Capital Developments (Feb 2010)

Report to CS Capital Programme Board – Early Years Capital Grant (October 2009)

Report to CS Capital Programme Board – Phase 3 Children’s Centre Capital Developments (May 2009)

Report to CS Capital Programme Board – Phase 3 Children’s Centre Developments (April 2009)

Report to CS Capital Programme Board - Early Years Capital Grant 2008-2011 (January 2009)

Report to CS Capital Programme Board - Early Years Capital Funding (October 2008)

Report to CS Capital Programme Board – Children’s Centre Developments (September 2008)

Report to CS Capital Programme Board – Capital Developments in the Early Years Sector (July 2008)

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