Childcare sufficiency report 2023

Delivering the early years entitlements

All 3 and 4-year-olds and the most vulnerable 2-year-olds are entitled to 570 hours funded early years education a year. This is delivered as 15 hours a week over 38 weeks (school term time) but can be taken as a stretched offer with fewer hours a week over more weeks per year. In addition, eligible 3 and 4-year-olds of working parents are entitled to a further 15 hours a week. This gives them a 30 hour a week entitlement, or 1,140 hours a year.   

EYE take-up rates

As of June 2023, 600 providers were registered to offer the Early Years Entitlements (EYE) 15 hours or 30 hours for eligible 2, 3 and 4-year-olds.

According to the Statistical First Release 2023 (SFR), Lincolnshire currently has a higher take-up of 2-year-old funded places compared to regional and national statistics.  Data from the statistical first release 2023:

2-year-old take-up

  • National: 73.9%
  • Regional: 69.7%
  • Lincolnshire: 76.3%

Total 2-year-old take-up at end of the summer term 2023 was 84%. This was based on 1,908 children eligible according to DWP list supplied in July 2023. This does not include July adjustments or August claims.

3 and 4-year-old take-up

  • National: 93.7%
  • Regional: 93.2%
  • Lincolnshire: 90.8%

The take-up rate for 3 and 4-year-olds has decreased in Lincolnshire.  Our participation in Dingley’s Promise will support joint working and sharing best practice through a regular peer network for participating LAs.  This peer group and the collective experience so far, has supported them to develop tools and resources to help LAs to measure the sufficiency of places for children with SEND. This has been a critical piece of work in ensuring legal compliance locally, as well as preparing for the extension of the early years entitlements and influencing change at a national level. Lincolnshire will be involved in more detailed analysis work with Dingley’s Promise to consider the take-up further.

The outreach work for 2-year-old funding will continue. However, it is planned that there is renewed focus on promoting the universal 3 and 4-year-old offer across the county to ensure that the take-up rate remains high.

Number of children in receipt of the 3 and 4-year-old entitlement

Entitlement Autumn 2022 Spring 2023 Summer 2023
Universal 7,108 9,189 10,655
Extended 3,623 4,801 5,664

Number of children in receipt of the 2-year-old entitlement across district areas in Lincolnshire:

District Summer 2023 numbers of children in places Summer 2023 percentage taken based on those eligible
Boston 163 64%
East Lindsey 293 78%
Lincoln 280 91%
North Kesteven 171 106%
South Holland 142 63%
South Kesteven 273 104%
West Lindsey 171 81%
Lincolnshire 1,600 84%

Early years funding

There are still inequalities across the country in terms of the amount of funding local authorities receive. Lincolnshire is 1 of 47 local authorities receiving the lowest level of funding in the country.

Funding rates increase from September 2023

Funding  March 2023 September 2023 % increase
2-year-old funding £5.29 £7.06 33.46%
3 and 4-year-old funding £4.42 £4.75 7.47%

With the government’s commitment for an additional £288m investment in funding rates from April 2024 in addition to the funding settlement, it is anticipated that rates for the next financial year will be further improved. This will support the future sustainability of the childcare market.

Childcare reforms

In the Spring Budget 2023, the government pledged £204m of additional funding to the early years sector in 2023 to support the funding levels paid to providers delivering the entitlements. This will increase to £288m by 2024 to 2025.

The measures outlined in the budget will be rolled out in stages. This will allow the childcare market to adjust to the growing demand. Below is the timeline for the childcare reforms:

  • April 2024 – 15 hours for eligible working parents of 2-year-olds
  • September 2024 – 15 hours for eligible working parents of children from 9 months
  • September 2025 – 30 hours for eligible working parents of children from 9 months to primary age
  • September 2026 – All schools able to offer 8am – 6pm wraparound provision

Work has begun within the early years team to review and analyse the potential need for additional childcare places to meet the expansion of places.