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Title page
Contents
Acknowledgments 2
Executive Summary 8
Introduction 8
Methodology 8
Delivery costs 9
Revenue 14
Costs and revenue for children with SEND 16
Conclusions 18
1. Introduction 19
2. Methodology 22
2.1. Selection of the sample of settings 22
2.2. Data collection 25
2.3. Calculation of average cost and hourly revenue rates 27
2.4. Collection of data for children with SEND 31
3. Delivery costs 33
3.1. Total setting costs 34
3.2. Hourly delivery cost per child 37
3.3. Hourly cost and staff: child ratios 41
3.4. Drivers of variation in hourly cost 43
3.5. Variation in hourly cost by organisation type 45
3.6. Variation in hourly cost by geographic area 48
3.7. Variation in hourly cost by quality measures 52
3.8. Variation in hourly cost by setting size and child profile 55
3.9. Variation in hourly cost by calendar month 57
3.10. Comparisons with previous estimates of hourly cost 61
4. Revenue 66
4.1. Sources of revenue 67
4.2. Parental fees and free entitlement rates 71
4.3. Cross-subsidisation between age groups 76
4.4. Surplus of total revenue over total cost 79
5. Costs and revenue for children with SEN/D 83
5.1. Children with SEND in mainstream settings 83
5.2. Specialist SEND settings 89
6. Conclusions 94
References 96
Annex A: Description of setting characteristics 99
Annex B: Methodological approaches for previous estimates of hourly delivery cost 101
Table 1. Average hourly cost per child by age of child 10
Table 2. Average hourly cost by provider type 11
Table 3. Average hourly cost by quality level 13
Table 4. Hourly parental fees and FEEE funding rates 15
Table 5. Rate of surplus by provider type 16
Table 6. Sample statistics 23
Table 7. Number of settings with imputations 28
Table 8. Total setting costs 34
Table 9. Total centre costs by type of provider 35
Table 10. Value of "free" resources from Government 36
Table 11. Value of "free" volunteer staff 37
Table 12. Average hourly cost per child by age of child 38
Table 13. Decomposition of hourly cost by cost source 42
Table 14. Average hourly cost by provider type 46
Table 15. Average hourly cost for single and multi-site providers 48
Table 16. Average hourly cost by region 49
Table 17. Average hourly cost for urban and rural settings 51
Table 18. Average hourly cost by deprivation level 52
Table 19. Average hourly cost by quality level 53
Table 20. Average hourly cost for graduate-led and non-graduate led settings 54
Table 21. Average hourly cost by setting size 55
Table 22. Average hourly cost by setting child age profile 56
Table 23. Average hourly cost by calendar month 60
Table 24. Comparison estimates of hourly delivery costs 62
Table 25. Combinations of parental fees and FEEE 68
Table 26. Amounts of other revenue by type of provider 68
Table 27. Specific types of other revenue sources 70
Table 28. Hourly parental fees and FEEE funding rates 72
Table 29. Ratio of hourly fee to hourly cost by age 77
Table 30. Relative percentage paid by age group by setting age profile 78
Table 31. Relative percentage paid by age group by provider type 79
Table 32. Rate of surplus by provider type 80
Table 33. Ratio of surplus by region 81
Table 34. Sample of SEND children in mainstream settings 85
Table 35. Additional SEND costs and funding by type of provider and need 87
Table 36. Total setting costs for SEND specialist settings 90
Table 37. Hourly cost for SEND specialist settings 91
Table 38. Revenue for SEND specialist settings 93
Table 39. Description of setting characteristics 99
Table 40. Methodologies, samples and timing for previous delivery cost estimates 102
Figure 1. Average hourly cost by source and region for three/four year olds 12
Figure 2. Average hourly cost by source and month for three/four year olds 13
Figure 3. Hourly cost for children with SEND 17
Figure 4. Distribution of hourly cost for under two year olds 39
Figure 5. Distribution of hourly cost for two year olds 39
Figure 6. Distribution of hourly cost for three/four year olds 40
Figure 7. Distribution of hourly cost for school children 40
Figure 8. Average hourly cost by source and provider type 47
Figure 9. Average hourly cost by source and region 50
Figure 10. Average hourly cost by source and quality level 54
Figure 11. Average hourly cost by source and month 59
Figure 12. Proportions of revenue from different sources by provider type 67
Figure 13. Parental fees and FEEE rate by provider type for two year olds 74
Figure 14. Parental fees and FEEE rate by provider type for three/four year olds 74
Figure 15. Parental fees and FEEE rate by region for two year olds 75
Figure 16. Parental fees and FEEE rate by region for three/four year olds 75
Figure 17. Parental fees and FEEE rate by quality 76
Figure 18. Hourly cost for children with SEND 86
Figure 19. Revenue for children with SEND 87
Figure 20. Total hourly cost and total hourly revenue by type of SEND 89
Figure 21. Hourly cost for specialist SEND settings for three/four year olds 91
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