How is funding for the provision of free places allocated to Local Authorities?
From 2006-07, the funding for under 5 provision, along with all pre-16 provision will be provided through the Dedicated Schools Grant (DSG), which will be a ring-fenced grant provided to local authorities to fund educational provision, in all types of provider. This will include PVI providers offering free early education. The DSG will be a ring fenced grant for education purposes, although local authorities will retain autonomy over how it allocates its spending over the age range. The Government has long taken the view that it is a matter for local authorities to determine the most effective use of resources at local level. This includes the balance between under fives and over fives; primary and secondary. Local authorities have a statutory duty to ensure there are sufficient free places for every three and four year old whose parents want one. They are also responsible, in consultation with local delivery partners, for determining the rate at which providers will be funded for deli
