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9. Quality - early years' provider agreement

Early years' provider agreement effective from 1 January 2025. Quality.


9.1 Ofsted no longer provide a single overall grade of effectiveness when inspecting state schools. Early years' provision in maintained schools and academies for children aged 2 and above, and maintained nursery schools are included in this change. The government is committed to replacing single headline grades in all the remits that Ofsted inspects in time, including the entirety of the early years sector.

All local authorities should continue to follow the regulations and statutory guidance regarding quality in early years' settings. Specifically, in relation to the effectiveness of provision if this is rated 'inadequate', and for the assessment-based 2-year-old entitlement 'requires improvement'. Therefore, the local authority reserves the right to update this agreement by notice in writing, to take account of any amendments made to the regulations governing the early years' entitlements.

9.2 The EYFS Statutory Framework is mandatory for all schools that provide early years' provision and Ofsted-registered providers in England. The EYFS sets the standards that all providers must adhere to, to ensure that children learn, develop well, and are kept healthy and safe.

9.3 The local authority, in line with the statutory guidance, rely solely on the Ofsted inspection judgement of the provider for all early years' entitlements. Ofsted and inspectorates of independent schools have regard to the EYFS in carrying out inspections and report on the quality and standards of provision.

9.4 The local authority will fund places for children eligible for the weekly funding entitlement or working parent entitlements at any provider judged 'requires improvement' or better by Ofsted, or at any childminder or childcare provider registered with a childminder agency judged 'effective' by Ofsted.

9.5 The local authority will fund new providers who are registered both with Ofsted and the local authority, until the provider's first full Ofsted inspection judgement is published or at a childminder who is registered with an agency, until the agency's first full Ofsted inspection judgement.

9.6 The local authority will notify providers of any restrictions imposed on them for the delivery of the early years' entitlements to eligible children under statutory school age, following publication of an Ofsted inspection or childminder agency judgement of 'requires improvement', 'inadequate', 'not met' or 'not effective' in the case of a childminder agency.

9.7 The local authority has a legal duty to provide information, advice and training on meeting the requirements of the EYFS, meeting the needs of children with SEND and on effective safeguarding and child protection for providers who are rated less than 'good' by Ofsted or newly registered providers.

9.8 Early years' provision must be offered in accordance with the national parameters on quality as set out in the Early Education and Childcare Statutory Guidance for Local Authorities and the EYFS statutory framework.

9.9 Unless otherwise permitted by the local authority, the provider shall only deliver the services:

  • 9.9.1 in respect of children eligible for the 2-year-old assessment-based funding
    1. where the provider is awarded a grade of 'good' or higher by Ofsted or
    2. where the provider registered with a childminder agency and the childminder agency is judged 'effective' by Ofsted,
    in the most recent early years provision inspection report published by Ofsted in respect of the provider/childminder agency
  • 9.9.2 in respect of children eligible for the weekly or working parent entitlements
    1. where the provider is awarded a grade of 'requires improvement' or higher by Ofsted or
    2. where the provider is registered with a childminder agency and the childminder agency is judged 'effective' by Ofsted,
    in the most recent early years' provision inspection report published by Ofsted in respect of the provider/childminder agency