1. Intention

This policy aims to provide parents/carers with a clear understanding of how Early Years Funding works at our nursery, outlining eligibility criteria, the number of funded hours available, when funded hours can be used, what is included in the funding, potential additional fees, and details on the nursery’s cost-free alternative. Our overall goal is to ensure transparency regarding the funding options we offer and how they are implemented.

2. Legislative context

Legal guidelines and framework

• Childcare Act, 2006
• Childcare Act, 2016
• Childcare (Free of Charge for Working Parents) (England) Regulations 2022
• Early education and childcare, 21 February 2025
• Early Years Statutory Framework, 2024 (EYFS)

Legal duties

Nursery providers have a legal duty to ensure eligible children can access their early years funding entitlements in line with statutory requirements.

3. Definitions

Early years funding

There are various terms used by local authorities and government bodies when referring to early years funding, such as ‘Free Entitlement,’ ‘Universal Funding,’ ‘Two for You,’ and ’30 hours childcare.’ To avoid confusion, throughout this policy we use the term ‘Early Years Funding’ to refer collectively to all forms of government-provided funding aimed at providing eligible children with access to funded early education and childcare provision.

Enhanced extracurriculars

This policy refers to the delivery of enhanced extracurriculars. This refers to the provision of specialist learning opportunities over and beyond the requirements of the EYFS. The specific extracurricular offerings may change over time based on factors such as the availability of specialist instructors and the needs and interests of the current cohort of children. Examples include:

Stretch funding

Stretch funding is only applicable if your child attends the nursery for more than 38 weeks in a year.

The government provides funding for 38 weeks of the year (school term time). This means if you’re eligible for 15 funded hours a week, you will receive 15 hours × 38 weeks = 570 hours per year.

With stretch funding, those 570 hours are spread across all the weeks your child attends the nursery (not just term time). This means you’ll get fewer funded hours each week, but they will last for more weeks of the year.

The table below shows how funding can be spread over 52 weeks, with two examples: one for 15 hours per week and one for 30 hours per week.

Details	Calculation	Example 1	Example 2
Number of funded hours you are entitled to per week over 38 weeks:	A	15	30
Number of weeks funding is provided for:	B	38	38
Number of funded hours you are entitled to over a year:	A x B	570	1140
Number of weeks the nursery is open:	C	52	52
Number of funded hours you are entitled to per week over the year:	(A x B) / C	10.96	21.92

Curriculum and Consumable fees (C&Cs)

The funding provided by the Department for Education supports the delivery of basic education and childcare in line with the minimum standards of the EYFS. However, this funding does not cover the cost of consumables such as meals, snacks, or the delivery of a curriculum that goes above and beyond the EYFS requirements.

At our nursery we provide a high-quality experience that goes beyond the basic expectations of the EYFS. We enrich our provision with thoughtfully planned activities, stimulating learning opportunities, and a nurturing environment that supports every aspect of a child’s development. As part of this, we offer nutritious, well-balanced meals and snacks that are freshly prepared and tailored to meet the specific dietary needs of young children. These enhancements form what we refer to as Curriculum and Consumables.

The nursery charges Curriculum and Consumable fees (C&Cs) when funded hours are used to help cover the cost of these enhancements. It is important to note that this is not the same as charging the difference between the local authority’s funding rate and our standard hourly fee. Instead, C&Cs reflect the added value and enriched experiences we provide beyond the core funded entitlement.

Standard Funded Offering

Our standard funded offering includes meals and snacks, extracurricular activities, outings, celebration events, learning journals via the Famly app, and all essential and emergency consumables. Curriculum & Consumable fees (C&C) are charged when funded hours are used.

4. Updates to this policy

This policy may be unilaterally updated at any time with immediate effect to ensure clarity and compliance with the latest government legislation and guidance. Please refer to the ‘More Information’ section on the website for the latest copy of this policy.

5. Restrictions on when funding can be used

The number of funded hours a child is entitled to depends on the child’s age and the family’s circumstances. While nurseries have some flexibility in when they offer Early Years Funding, they must follow these rules:

• A child cannot receive more than 10 funded hours of childcare in one day.
• Funded childcare must take place between 6:00am and 8:00pm.

6. How much funding am I entitled to each year?

The government provides childcare funding for 38 weeks of the year, covering school term time only. No funding is available for the remaining weeks of the year. During these 38 weeks, families may be entitled to either 15 or 30 hours of funded childcare per week, depending on their individual circumstances. If a child attends more than one childcare provider (such as another nursery or a childminder), their total funded hours may be shared between the two settings. How this funding is split is decided by the parent or carer.

7. How much funding am I entitled to each week?

Please see the nursery Price List for the exact number of weeks your funding is stretched over and how many funded hours you will receive each week. If term-time only spaces (38 weeks a year) are not available, stretch funding will be the only option.

8. What do I do if I am splitting my funding between this nursery and another setting?

If you are planning to share or are already sharing your funded hours with another childcare provider, you must inform us as soon as reasonably practicable. This is essential to ensure your funding application is completed correctly. If we are not made aware, we may allocate too many or too few funded hours to your child’s place with us, which could affect your invoice and any charges you may be required to pay.

9. How are funded hours applied?

Funding is applied in order of session price, where funding is applied to the lowest price sessions first. If sessions are priced equally, funding is applied in chronological order.

10. Additional funding support available

There is additional funding available to providers including the Early Years Pupil Premium (EYPP) and Disability Access Funding (DAF). Both EYPP and DAF are available to all children who meet the relevant eligibility criteria and are taking up a funded Early Years place.

• The Early Years Pupil Premium (EYPP) provides extra funding to improve the quality of early education for eligible children accessing their funded entitlements.
• The Disability Access Fund (DAF) supports eligible disabled children in accessing their early education entitlements.

Children with Special Educational Needs and Disabilities (SEND) must be treated fairly and equally, with appropriate reasonable adjustments made in line with Sections 20 and 21 of the Equality Act 2010.

11. Which sessions can funding be applied to?

Funded hours can be used on any session on any day of the week.

12. What happens if my child changes nursery?

It is possible to change nursery mid-way through a funding period without impacting your funding entitlement. The funding will follow your child to their new provider. The nursery will inform the council that your child has left the setting and we will stop claiming funding for the child on the day they leave the setting.

13. Are there any additional charges when funding hours are used at the nursery?

Yes, our nursery charges Curriculum and Consumable fees (C&Cs) when funded hours are used.

14. How are Curriculum and Consumable fees (C&Cs) charged on my invoice?

For every funded hour your child uses at the nursery, 1 hour of Curriculum and Consumable (C&C) fees is also charged. On your invoice, these charges will appear as “CC” (Curriculum & Consumables) or “AS” (Additional Services), depending on how the system labels them.

15. What are Curriculum & Consumable fees (C&Cs) paying for?

Please see the following page for a summary of what the Curriculum & Consumable fees (C&Cs) goes towards.

Item	Type
Breakfast, lunch and tea	Meals & snacks
Snacks
Food waste disposal
Materials & equipment required for food preparation
Additional staffing & training costs for food preparation
Materials, equipment & learning resources for enhanced extracurriculars	Enhanced extracurriculars
Third-party costs related to the delivery of enhanced extracurriculars
Extra staffing requirements & training costs for enhanced extracurriculars
Materials, equipment & learning resources for the delivery of outings & trips	Outings & trips
Third-party costs related to the delivery of outings & trips
Additional staffing requirements & training costs for outings & trips
Materials, equipment & learning resources for special events & celebration days	Special events
Nappies, nappy sacks, wipes, creams, suncream	Essential consumables
Emergency medication	Emergency consumables
Famly app	Learning journey
Computing and photography equipment related to posting on Famly
Additional staffing requirements & training costs related to Famly

16. How much are the Curriculum & Consumable fees (C&Cs)?

Please refer to the most recent Price List.

17. Are the Curriculum & Consumable fees (C&Cs) voluntary?

If you are unwilling or unable to pay for C&Cs, there is the opportunity to apply for Community Hours.

18. What are Community Hours?

Community Hours are sponsored funded hours provided by the nursery, where the nursery covers all additional costs that would normally be charged alongside government-funded hours. This initiative reflects our commitment to creating an inclusive environment and supporting families in our local community. Community Hours offer a cost-free alternative to Curriculum and Consumable (C&C) fees, while still giving children full access to all the same benefits. Children accessing Community Hours will continue to receive meals, snacks, and enhanced extracurricular activities; the only difference is that no additional charges apply. No Registration Fee is charged if a child starts at the nursery with Community Hours. ¹

19. When can Community Hours be used?

Community Hours can only be applied when funded hours are used. Community Hours are not applicable on privately paid sessions.

The nursery may choose to restrict the use of Community Hours to certain attendance plans (for example, full year only), booking patterns (for example, full days) or specific days (for example, Monday and Friday).

20. How many Community Hours are available?

The nursery will offer at least 1% of the total hours attended at the setting as Community Hours. In some cases, and if commercially viable, the nursery may choose to offer more. Any decision to award more than 1% is entirely at the nursery’s discretion and does not set a precedent for future years.

If the full allocation of Community Hours for the academic year is used up during the first term, the nursery will make at least 570 additional hours (annualised) available at the start of each new term. This ensures there is some provision for new families applying later in the year.

21. How many Community Hours can I apply for?

The maximum number of Community Hours you can apply for is the lower of:

• 15 hours per child (term-time equivalent), i.e., 15 x 38 = 570 hours per year
• The total number of funded hours the child attends per week

It is important to note there is very limited availability of Community Hours so we encourage parents/carers to only apply for the exact number of Community Hours that suit their specific need.

22. Who is eligible to apply for Community Hours?

Anyone who attends the nursery or is scheduled to attend the nursery using funded hours is eligible to apply for Community Hours. You must apply to be eligible for Community Hours. Without an application, they will not be allocated.

23. When are Community Hours allocated?

Applications for Community Hours are reviewed on a termly basis and distributed at three “Allocation Dates”: the start of August, the start of December, and the start of March. Any applications received after these dates will not be considered until the next Allocation Date.

24. On what basis are Community Hours allocated?

Community Hours are allocated to families who have applied at the three Allocation Dates each year (start of August, start of December, and start of March). They are distributed according to the following rules:

• Community Hours are distributed on a first-come, first-served basis until the total allowance has been used.
• Each child must receive a minimum of 7 hours per week (term-time equivalent), unless the family applied for fewer hours.
• If there are not enough hours left to give a child the 7-hour minimum, the child will be placed on a waiting list in the order their application was received.

In addition to these rules, the following priorities apply:

• Children already receiving Community Hours will continue with the same allocation.
• Children receiving EYPP or 2-year-old funding for vulnerable families will receive the maximum Community Hours they are eligible for, in order of application date.
• Children on the waiting list, in order of application date.
• Children already receiving some Community Hours, but not the full amount they applied for.

25. How long will I keep my Community Hours for?

Once you have been awarded Community Hours these will stay on your account until your child leaves the setting or you inform us that they no longer require them. We encourage families whose circumstances have changed to consider returning any unrequired hours, allowing us to reallocate them to other families in need.

26. How do I apply for Community Hours?

Please contact the management team and they will you the Community Hours Application Form to complete. We only accept applications for Community Hours the term before your funding is due to start.

27. What do I do if there are no Community Hours and I don’t want to pay any fees?

If there are no more Community Hours available, you have the right to apply for Basic Entitlement Hours. This means your child will not benefit from any of the enhanced activities, resources, or services that the C&Cs fee supports. Please speak to the nursery manager for more details.

28. Partially funded sessions

If your session is part funded, the C&Cs are charged on a pro-rata basis for the hours which are funded. This means if your session is 10 hours long, but only 5 hours are funded, you will pay 50% of the value of the C&Cs and 50% of the value of the session.

29. Bank Holidays

Funding that falls on a Bank Holiday is not automatically applied onto alternate unfunded sessions.²

30. More information on funding

If you would like to find out more about funding, we encourage you to look at the Childcare Choices website: https://www.childcarechoices.gov.uk/

31. Complaints about funding

Please follow the procedure outlined in our Complaints and Compliments Policy.

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1. If you have already paid a Registration Fee and you are later awarded Community Hours, the Registration Fee is not refundable. ↩︎
2. To claim hours that fall on a Bank Holiday and apply these to another session the nursery must be contacted directly ↩︎