Government Funding

Government funding explained

The Early Years Funding can be complicated and challenging to keep current with the latest guidelines. The information we provide is for guidance only, and we encourage you to visit the government websites for further information (details on the following pages). Under the newest legislation, we have to provide greater transparency to parents and an option to ‘opt out’ of additional charges if the parent wants to access their funded hours with no ‘extras’.

As an early years provider, it is our mission to ensure we offer exceptional childcare education for your child and will not compromise the quality of our provision. We aim to be transparent and fair in our calculations, and this document details important information regarding fees, local authority funding, and tax-free childcare, alongside your options to enhance your child’s learning journey through our additional services. 

What does the funding cover?

“The base rate funding is calculated to include the cost of all necessary resources and facilities to deliver a child’s funded education place as identified within the Early Years Foundation Stage. This includes basic equipment, such as stationery, paints, toiletries, etc.” (quote from NCC guidance) 

The government funding is intended to pay for 15 or 30 hours per week of quality childcare. 

It does not cover:

• Meals and snacks
• Consumables such as sun cream, nappies, wipes, etc
• Any additional hours
• Additional activities such as trips, outings and extra-curricular classes.
• Any other activity or resource not directly related or necessary for delivering the Early Years Foundation Stage (EYFS) Statutory Framework.

When does my child become eligible for funding?

Funding is only available the term AFTER a child reaches their milestone age. 

• 15 hours of Universal Funding for ALL 3+ year olds
• Funding for some Vulnerable 2-year-olds (subject to meeting a financial criterion or if a child receives disability living allowance)
• Working Families Funding for Children aged 9 months or older from September 2024 

How do I qualify for the funding?

• Both parents (if living together) must be working at least 16 hours per week (or earning the equivalent of 16 hrs at the living wage) 
• Must earn less than £100,000 a year each. 

The UK government has extended childcare funding to support working parents of children from nine months old. 

Eligible families will be entitled to 15 hours of funded childcare per week for children aged nine months to 2 years. The funding will increase to 30 hours of free childcare per week from September 2025. 

To check eligibility and apply for these schemes, visit www.childcarechoices.co.uk

This website also offers detailed guidance on additional financial support, such as Tax-Free Childcare, which could save parents up to £2,000 per year per child. 

Eligibility for the 15-hour vulnerable 2-year-old funding can also be checked using the above link.

How do I access the funding?

You will need to apply online via the childcare choices website: www.childcarechoices.gov.uk
The site will redirect you to a government eligibility page. 

Once you have completed the online application form, you will be given an 11-digit code. Please email this code to the nursery together with your National Insurance number and date of birth so we can process your claim. 

Please note that this code is only valid for a period of time. It is your responsibility to reconfirm your eligibility every 12 weeks via the government website. Without this reconfirmation, you will not be awarded funding for the following term.

YOU MUST APPLY FOR YOUR CODE: –

• During the term before your child is eligible.
  
• Claims must be made no later than 31st December 31st March or 31st August.
  
• Claims made after this date will NOT be honoured, and you will have to wait a further term before claiming any funding entitlement.
  
• You will be responsible for payment of full fees should you not provide us with the required information promptly or fall out of eligibility without the required notice given 

Maximum Funding Entitlements

15 hours per week x 38 weeks = 570 hours per year

For

All 3-year-olds – Universal Entitlement
Working families of children aged 9 months or older

OR

30 hours per week x 38 weeks = 1140 hours per year

For

Working families with children aged 3 and 4 years old
Working families of children aged 9 months or older from September 2025.