How early education is funded

Funding paid to childcare providers must be used to deliver the funded hours to each eligible child. The funded hours must be free to the parent/carer at the point of delivery. The funding formula factsheet gives an overview of how funding is distributed.

April 2024 Base Rate Funding for 2024/25

April 2024 Base Rate Funding for 2024.25
2 Year Old Funding - Disadvantaged £7.48
2 Year Old Funding - Working Parent Entitlement £7.05
3&4 Year Old Funding - Universal & Working Parent Entitlement £4.88

September 2024 Base Rate Funding 2024/25

September 2024 Base Rate Funding 2024.25
Under 2's - Working Parent Entitlement                                    £9.90

 Hourly rate funding is paid over at least two payments per term:

  1. The first payment is an advance payment. This equates to 70% of the providers funding estimate which is submitted by the cut off date for the term. This is paid during the first week of the term. 
  2. The second payment is a claim payment. This equates to 100% of a providers funding claim, minus the advance payment. This is usually paid at half term.
  3. The third payment is a reconciliation payment. Each term a reconciliation is carried out to ensure that providers have received all the funding that they claimed for. Where a provider hasn't received the full amount of funding due, this payment is made at the end of term. 

In exceptional circumstances, we reserve the right to implement specific payment arrangements for individual providers.

Funding is claimed by a termly Headcount submission on the Education Portal. Providers receive funding for a full term, there are no opportunities to claim after the Headcount has been submitted. There are no centrally administered mid term funding transfers. Where funding has been claimed for a child at a setting on the termly headcount, it cannot be claimed for at a new setting the next term.

Deprivation supplement

Children aged 3 & 4 who live in a post code of deprivation and were counted at your setting in the early years census in January are eligible. This year we will be paying for universal and working parent entitlement hours, the rate is £251 per child based on a 570 hour place any hours over this will be paid pro rata. Your payment will be split over three termly amounts.  

Quality supplement

If providers have invested in a graduate leading practice in their setting, they will receive the quality supplement. This supplement is available to private and voluntary settings which includes day nurseries, pre schools playgroups, childminders and school nurseries.

The quality supplement is paid in three equal amounts at each half term. The annual rate for settings with graduate leaders who have achieved Early Years Teacher (EYT) status, Early Years Professional (EYP) status or Qualified Teacher Status (QTS) is £1250 for group settings (settings can apply for up to 2 graduates per setting), £500 for childminders and £6600 for school nurseries.

Early Years Pupil Premium (EYPP)

This is additional funding for early education providers to support the education of disadvantaged children. It is paid at the national rate of £0.68 per hour, for eligible children claiming a free place. This equates to an additional £388 for a child receiving the full 570 hour entitlement.

Further information on Early Years Pupil Premium (EYPP) including the eligibility criteria is available. 

Disability Access Fund (DAF)

This supports funded children in receipt of Disability Living Allowance (DLA) to access a setting. To claim Disability Access Funding for an eligible child, providers will need to upload a copy of the child's Disability Living Allowance awards letter to the child's record on the Education Portal and it will also be required should a setting be audited. 

The funding is a one-off payment of £910 per financial year.

DAF is paid in the first term that a child claims early education funding. Once the funding has been paid to a provider it cannot be transferred. It cannot be used to pay for additional hours at the provider. Further information on Disability Access Fund is available.