Early years funding guide

Introduction

Early Years Funding is a nationwide initiative, managed by local authorities, that provides funded childcare hours with an Ofsted-registered provider. The number of funded hours available varies based on the child’s age and the family’s circumstances. Childcare providers have the flexibility to offer Early Years Funding, provided they adhere to the following guidelines:


  • Funded childcare cannot exceed 10 hours in a single day.
  • Funded childcare must be utilised between 6 a.m. and 8 p.m.
  • Funded childcare can be accessed at a maximum of two childcare locations in one day.


At New Beginnings families are able to maximise their funded childcare by using up to 10 hours of funding a day before purchasing additional hours and without any artificial break in the day.


As an all-year-round childcare provider, we will stretch the Early Years Funding across 50 weeks (from September 2025) instead of limiting it to 38 weeks of term time.


For a breakdown of the fees and funding at your nursery of choice, please click the fee sheet button.


 Stretched funding

Understanding childcare funding can be challenging, but the good news is that we’re here to help. In England, there are two government funding programmes. In simple terms, you can make the most of either 15 or 30 funded hours per week, depending on your circumstances.  From September 2025, we will ‘stretch’ these hours and how that works varies between our nurseries, as some Local Authorities have their own requirements regarding this. When you are eligible for 15 hours, you will be able to access up to 570 hours or 11.4 hours per week for 50 weeks of the year. If you are eligible for 30 hours, you can access up to 1140 hours or 22.8 funded hours per week, across 50 weeks.

Funding guide

There are numerous government funding options available to assist parents with childcare costs. While this doesn’t mean childcare will be completely free, your costs may be significantly lower than anticipated. Several government-funded childcare programs cater to parents with children aged between 9 months and 4 years.


Additionally, you have the option to divide your funding between two childcare providers. To do this, simply share your eligibility code and relevant information with both providers; however, you can only access a maximum of two locations in a single day.


Each provider may determine your funding based on either a term-time only schedule or an all-year-round basis. It’s important to note that the funding cannot exceed the offer of 15 hours (570 hours per year) or 30 hours (1140 hours per year)


For more information about how we offer funding at New Beginnings flip through the funding guide that we have provided.

New Beginnings' Funded Early Education Entitlement (FEEE) policy

  • How New Beginnings Offers Early Years Funding

    NB aims to help families make the most of their funding.  


    At our nurseries, families can maximize their funded childcare by utilising up to 10 hours of funding per day before purchasing additional hours, NEW  without any unnecessary breaks in the day.  


    As an all-year-round childcare provider, we distribute Early Years Funding over 50 weeks instead of limiting it to 38 weeks of term time.( commencing September 2025 )  

  • NEW Stretch Effect

    15 hours of funded childcare over 38 weeks (term time) equals up to 570 funded hours a year. Under NB’s stretched offer, this translates to 11.4 hours of funded childcare weekly across 50 weeks.  


    30 hours of funded childcare over 38 weeks (term time) equals up to 1,140 funded hours a year. Under NB’s stretched offer, this amounts to 22.8 hours of funded childcare weekly over 50 weeks.  


    Any additional hours above early years funding will incur the nursery’s standard fee rate (as detailed in the fee sheet).  


    Funding is available in 10-hour increments and starts when the nursery opens.  


    If a parent is eligible for 11.4 funded hours a week and books two full days or more at the nursery, the remaining 1.4 funded hours will be allocated to the second day * 


    If a parent is eligible for 22.8 funded hours a week and books three full days or more at the nursery, the remaining 2.8 funded hours will be allocated to the third day ** 


    NB reserves the right to make exceptions to its funding framework on a case-by-case basis at its discretion.  


    Fully funded places (where no extra hours are used) are available at our nurseries but are limited. Please speak to a member of the management team for more information.


    Availability and booking patterns differ from nursery to nursery. Fully funded places may be offered on a stretched basis depending on the nursery's operational needs. Upon request, the Nursery Manager will discuss the options for a fully funded place with parents.  


    Details on all Early Years Funding eligibility criteria can be found here on the  Childcare Choices website 


    https://www.childcarechoices.gov.uk/ 

  • When a term starts

    Terms are counted as starting on the:

    1st January 

    1st April and 

    1st September regardless of when the individual providers terms start. 


    A child must have turned the correct age before the term starting dates to get the funding. 

  • Permissible charges on funded hours

    Early Years Funding is designed to cover only the provision of childcare. It does not include costs for meals, snacks, non-food consumables, enhancements or additional hours. To cover these excluded costs, we ask parents to pay itemised charges. Please contact us to find out more.   


    NB does not allow families to bring their own food (like packed meals for breakfast , lunch , tea and snacks) into the nursery to mitigate allergen risks and storage/handling concerns.  


    Parents can opt not to pay the itemised meal, non food consumables and enhancement charges in accordance with the funding terms and conditions.  Alternative options for meals will be discussed with the parent by a member of the management team in accordance with our meal policy.


    If a parent opts into paying the meals, non food consumable and enhacement charges at the start of the term no changes can be made until the following term when a new parent declaration form will be signed by the parent.  

  • Types of Early Years Funding Supported :Two-Year-Old Funding

    Your 2-year-old is eligible for 15 hours of Supported childcare per week for 38 weeks of the year (570 funded hours a year). This commences from the term after they turn two, provided the child or parent meets specific eligibility criteria. 


    If you live in England and get any of the following benefits: 


    • Income Support 
    • income-based Jobseeker’s Allowance (JSA) 
    • income-related Employment and Support Allowance (ESA) 
    • Universal Credit, and your household income is £15,400 a year or less after tax, not including benefit payments 
    • the guaranteed element of Pension Credit 
    • Child Tax Credit, Working Tax Credit (or both), and your household income is £16,190 a year or less before tax 
    • the Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit) 
    • Support through part 6 of the Immigration and Asylum Act - NASS support 

    They are also eligible if: 

    • they are looked after by a local authority 
    • have an education, health and care (EHC) plan 
    • get Disability Living Allowance 
    • have left care under an adoption order, special guardianship order or a child arrangements order 

    Note: You can use the hours from 1 January, 1 April or 1 September following your child’s second birthday.  


    Only one type of Two-Year-Old Funding can be claimed at a time.  

  • Types of Early Years Funding Working Families Funding

    You may be eligible for 15 hours funding for 38 weeks of the year for your 9-month-old plus child if you are working and earning at least the equivalent of 16 hours a week at the national living or minimum wage, but less than £100,000 a year. 


    If you are a couple then this applies to each of you – if one of you doesn’t work, or one of you earns over £100,000 you won’t be eligible. 


    To find out more about the new funding, please sign up on the government Childcare Choices website. 


    From September 2025 a child from 9 months old to 4 years will be entitled to 1140 funded hours a year starting from the term after they meet the age requirement and eligibility criteria set by the government.  


    Parents must apply for a positive determination of eligibility from HMRC via their Childcare Service Account (i.e., a valid eligibility code). This code must be provided to us before claiming Early Years Funding. Parents are responsible for re-validating the eligibility code every three months when prompted by HMRC. Failure to do so may result in the withdrawal of Working Families Funding.  

  • Types of Early Years Universal funding 3-4 year olds

    Every single child aged three and four is eligible for 15 hours funded childcare. If your child is three or four years old and lives in England, you’re entitled to 15 hours funded childcare or early education per week for 38 weeks of the year (during term time). You can use the hours from 1 January, 1 April or 1 September following your child’s third birthday. 


    Regulation requires us to verify a child’s age, so parents must provide evidence of the child's birth date (usually a passport or birth certificate), and copies may be retained for compliance purposes.  

  • Parent Declaration Form

    Regulation mandates that childcare providers enter into a separate funding agreement with parents, known as the Parent Declaration Form.  


    Local authorities require parents to sign a Parent Declaration Form for Early Years Funding each term. If this form is not signed and returned, we cannot claim Early Years Funding, and full fees (without the funding) will be charged.


    Parents will have the choice to opt in or out of meals, consumable and itemised enrichment activities each term . If parents opt in at the start of the term no changes can be made to their desicions until the next term. Therefore charges for meal, consumables and itemised enrichment activities will be allocated to the monthly statements.

  • What is Funding Loop?

    Funding Loop is a simple-to-use portal that allows parents to complete their funding documents online, making it quicker and easier to successfully access their funding entitlement. 


    How does it work? 


    Parents of children who already receive funding at one of our nurseries, or will be funded in the next term, will be invited to create a Funding Loop account to receive their child's documents securely. 


    We advise all parents to log into Funding Loop as soon as they receive their invitation. 


    Funding Loop allows parents to: 


    • Access the portal from a computer, tablet or mobile phone 
    • Receive important information about funding 
    • View all funding claim documents 
    • Complete all mandatory funding forms digitally 
    • Submit funded childcare codes 
    • Speed up the funding claims process 
    • Be reassured that all data is held securely 

    All families entitled to funded childcare are advised to apply for and submit their code as soon as they are eligible to ensure their funding is allocated efficiently. 

  • Required Documentation

    Regulation requires childcare providers to obtain documentation verifying eligibility for Early Years Funding as follows:  


    Supported Two-Year-Old Funded Childcare: Child’s birth certificate or passport, confirmation of eligibility (e.g., local authority confirmation letter/email or code).  


    Universal Funded Childcare: Child’s birth certificate or passport.  


    Working Families Funding: Child’s birth certificate or passport, parent’s full name, date of birth, eligibility code from HMRC, and national insurance number.  


    Additional documentation may be necessary based on local authority requirements.  .

  • Child Absences

    Each local authority has its own policy regarding child absences during Funded Childcare. NB must inform local authorities of child absences, and they have the right to reclaim funding payments made during these absences. Parents are responsible for covering any funding payments reclaimed by the local authority due to a child's absence.  

  • Booking Pattern

    NB requests that parents confirm their booking pattern before the start of a new term. Funded Childcare cannot be applied to any ad-hoc sessions booked outside of the confirmed pattern at the beginning of the term.  


    Permanent changes to booking patterns can be made by NB in line with the terms of the Parent Agreement.  

  • Local Authority Role

    Each childcare provider enters into an agreement with the local authority to provide the Early Years Funding. The local authority pays the childcare provider directly for the Funded Childcare it provides to the eligible children. The parents of the eligible children do not have access to, or the right to access, the Early Years Funding paid by the local authority.

  • Other Types of Funding

    Special Educational Needs and/or Disability (SEND) Funding  


    Every local authority has a SEND inclusion fund aimed at aiding providers in meeting the needs of individual children with SEND. SEND Funding is paid directly to the provider by the local authority. When determining the value of SEND Funding, the local authority considers the number of children with SEND in the local area, their level of need, and the overall capacity of the local childcare market.  


    NB will utilize SEND Funding to support children with any learning and developmental delays or special educational needs or disabilities by accessing specialized resources and equipment.  


    Disability Access Funding (DAF)  


    DAF is available to children receiving Disability Living Allowance and Early Years Funding. Local authorities are responsible for verifying that the DAF eligibility criteria are met. It is a one-time annual payment made directly to the provider. If the child changes providers during the year, the DAF remains with the original provider. If a child attends multiple providers, the parent must allocate the DAF to one provider. This funding cannot be split among providers.  


    NB will use any DAF to make reasonable adjustments or adaptations, enabling the child to access the provision equally alongside other children or for resources beneficial to the child.  


    NB will collaborate with the child’s parents and engage relevant professionals to ensure appropriate spending of DAF.  


    If multiple children access DAF, we may use the funding for all children to support a shared adjustment or purchase resources that benefit more than one child.  


    Any resources obtained through DAF remain the property of NB and can be used to assist future children in accessing the provision. If a child moves to a new provider, it is at NB’s discretion whether to transfer any resources purchased using DAF to the new provider.  


    DAF will not cover additional staffing costs.  


    Early Years Pupil Premium (EYPP)  


    EYPP is additional funding that NB can claim to enhance outcomes for eligible children. The local authority pays EYPP directly to the provider.  


    EYPP is available to support children whose parents meet the eligibility criteria and are receiving Early Years Funding. Local authorities are responsible for checking that EYPP eligibility criteria are fulfilled.  


    Eligibility criteria can be found here: https://www.gov.uk/get-extra-early-years-funding 


    NB will use EYPP funding to positively impact the child’s development.  


    Deprivation Funding  


    Deprivation Funding is paid directly to NB by the local authority.  


    Deprivation Funding supports children whose parents meet the eligibility criteria and are in receipt of Early Years Funding. Local authorities are responsible for verifying that Deprivation Funding eligibility criteria are met.  


    Eligibility criteria are set by the local authority (varying by location) and may consider:  


    Child’s postcode  


    Eligibility for Supported Two-Year-Old Funding  


    Eligibility for EYPP  


    Deprivation Funding is not child-specific and can be applied to support all children in the setting.  


    NB will use Deprivation Funding to bridge the attainment gap among children in the nursery 


     

  • Funding terms and conditions

    Please refer to the main terms and conditions for more information.

  • Childcare providers have the flexibility to offer Early Years Funding as long as they adhere to the following guidelines

    • You can take your funded hours between 6am-8pm, but no session can be more than 10 hours. 
    • You don’t have to use all the funded hours you are entitled , just those that meet your needs. 
    • Providers have a choice whether to offer the hours, some may not offer the full 30 hour offer.  
    • You can split your hours between providers, but splitting is limited to a maximum of two sites per day ( 2yr funded 15 hours must be taken with one provider only).  
    • Early years funding cannot be taken on a bank holiday and standard provider terms and conditions will apply.
    • A provider can charge for additional services, for example, Breakfast, snacks, lunch including desserts, Tea including desserts , consumables, itemised enrichment services but these charges cannot be a condition of accessing your funded place. See the funding policy for more information.
    • Meet the quality requirements that are set out in regulations and in the statutory guidance of the Early years Foundation Stage. 
    • Funded hours are available for 38 weeks of the year. Some providers and Local authorities will allow you to ‘stretch’ your 30 hours entitlement over more weeks. For example, you could take 11.4 hours for the 15 hours funding or 22.8 hours for the 30 hours funding hours a week for 50 weeks






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