Nursery Education Fund 2021: Approval of changes

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A decision made on 16 May 2021

Decision Reference: MD-ESC-2021-0005
Decision Summary Title :	Approval of changes to the Nursery Education Fund 2021		Date of Decision Summary:	23 March 2021
Decision Summary Author:	Private Secretary		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Approval of changes to the Nursery Education Fund 2021		Date of Written Report:	23 March 2021
Written Report Author:	Private Secretary		Written Report: Public or Exempt?	Public
Subject: Approval of changes to the Nursery Education Fund 2021
Decision(s): Noting the obligations on Accountable Officers under Article 39(1)(b) of the Public Finances (Jersey) Law 2019, the Minister for Education instructed the Accountable Officer to implement changes to the Nursery Education Fund (NEF) as set out in the attached report. This follows the announcement of this intention by the Minister for Education on 11 December 2020, supported by the Chief Minister and Council of Ministers. This policy change is supported by Government Plan 2020 and aligns with the Common Strategic Policy to “Put Children First”.
Reason(s) for Decision: Government Plan 2020 CSP1-2-02 Improving Educational Outcomes Programme - The Early Years Policy Development Board (EYPDB) approved additional revenue funding for Early Years proposals. The Minister has also taken into the account the views of his Ministerial colleagues as the Island’s elected leaders, and those of the States Assembly who approved the Common Strategic Policy and the 2020 Government Plan. Within the approved 2020 plan there was a commitment to “Continue to develop better-integrated support in the ‘early years’ (0 to 5), through the work of the Early Years Policy Development Board, starting with a reformed nursery education offer.”
Resource Implications: The estimated resource impact of this decision relies on assumptions around the numbers of children in the age range, the rate of take-up of nursery places and the balance of parental choice between school and private nurseries. These factors are subject to variation. The projected increase in expenditure compared to 2020 is an estimated £0.4m to £0.6m in 2021 with a full year effect of between £1.2m and £1.8m in 2022. Additional funding was agreed for the Nursery Education Fund in 2021 and indicatively for 2022 to 2024 in the Government Plan 2021-2024. The budget is projected to be sufficient to fund this initiative in 2021 but there is a risk of a budget shortfall between £100,000 to £600,000 in 2022 depending on actual demand and parental choices. The Minister will seek to resolve any predicted shortfall for 2022 onwards through the usual Government Plan process, or via other mechanisms, with the consent of the Treasury Minister. If these are unsuccessful the Minister acknowledges that any unbudgeted costs of this scheme will have to be met from within the agreed CYPES head of expenditure. In that event the Minister will consider for approval or otherwise, any measures presented to him by the department to manage any unbudgeted costs of this scheme within the overall departmental budget envelope agreed in the Government Plan.
Action required: The Director General of CYPES to ensure officials progress the necessary work to implement the changes for the start of term, September 2021.
Signature: Deputy Scott Wickenden		Position: Assistant Minister for Children and Education
Date Signed:		Date of Decision (If different from Date Signed):

Nursery Education Fund 2021: Approval of changes

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Department for Children, Young People, Education and Skills (CYPES)


Title:	Approval of changes to the Nursery Education Fund (NEF) 2021
Date:	23/03/2020

Author:	Private Secretary to the Minister for Children and Education

Background

The Minister for Education, announced on 11th December, 2020 the Government of Jersey's intention to extend the 20 hours of funded nursery education, offered to all children aged 3 to 4, to 30 hours from September 2021. A commitment to review the hourly rate paid to registered providers was also made at the same time.

The announcement was aligned with a policy recommendation from the draft Early Years Policy Development Board (EYPDB) Report:

“The Board recommends the consolidation of an educational entitlement for all children (3 – 4-year olds) with a future extension to 30 hours during term time.”

The recommendation was further supported by Engagement Day Insights, Parents/Carers Focus Groups, Market Review and Analysis, plus National and International Research.

Recommendation from Accountable Officer CYPES – 24th February 2021

Not to proceed with implementing the JEYA proposed rate and suspend the announcement, therefore. of a specific uplifted hourly rate in order that the necessary assessments of the level of increase and the affordability of such and increase are sufficiently understood through rigorous, evidence-based analyses.
Consider, as an alternative, the option of establishing an evidence-based interim rate in order to create headroom for a full evaluation of the long-term level.
Consider implementing the increase in hours from no sooner than January 2022 (rather than September 2021) to facilitate 1. and/or 2. above.

Decision

The Minister acknowledged the risks highlighted by the Accountable Officer and the recommendations made.

The Minister also took into the account the views of his Ministerial colleagues as the Island’s elected leaders, and those of the States Assembly who approved the Common Strategic Policy and the 2020 Government Plan.

Within the approved 2020 plan there was a commitment to “Continue to develop better-integrated support in the ‘early years’ (0 to 5), through the work of the Early Years Policy Development Board, starting with a reformed nursery education offer.”

The Minister believes the risks identified by the Accountable Officer are outweighed by the urgent need to honour the commitments that Government has previously made and the need to provide certainty to parents, schools, and the NEF registered providers, in line with legitimate expectations they hold in response to government announcements.

Accordingly, the Minister made the decision to implement the following changes to the Nursery Education Fund from the start of term, September 2021:

Up to 30 hours free education each week, for 38 weeks, during school term-time only
Hourly rate paid to registered providers of £6.70