Administration of the funded hours
This page is about the administration of the funded hours. Use the links to jump to that topic.
- How to identify the number of hours claimed at each provider and parent declaration forms
- The funded offer
- Claiming for a child's full entitlement even if the child is not attending for all of it
- If a child leaves or does not attend for the funded hours as agreed
- If a parent breaches the notice period set by the provider
- Further information about working parent entitlements
- Where to get information on payment and headcount dates, copies of parent declaration forms, EY portal guidance, validating working parent codes
How to identify the number of hours claimed at each provider and parent declaration forms
This must be identified through the parental declaration and privacy notice, which parents must complete when claiming funded places. This is a legal requirement and providers are responsible for this. These only need to be shared if requested by the council as part of a dispute or audit.
The funded offer
We will work with providers and parents to ensure that all parents, including disadvantaged families, have fair access to a funded place, which must be delivered completely without charge. Providers can charge parents for the following extras in connection with the free hours, but these charges must be voluntary for the parent:
- Consumables to be used by the child, such as nappies or sun cream
- Meals and snacks consumed by the child
- Extra optional activities such as events, celebrations, specialist tuition (for example music classes or foreign languages) or other activities that are not directly related or necessary for the effective delivery of the Early Years Foundation Stage (EYFS) statutory framework.
Providers can also charge parents for any additional, private paid hours according to their usual terms and conditions provided taking up private paid hours is not a condition of accessing a free place.
The costs of chargeable extras should be published on provider websites or, where they do not have any website, on the local authority Childcare Directory. These should be clear, up-to-date and easily accessible to parents, to enable parents to make an informed choice of provider. They should set out, for each setting, the amounts charged for all the chargeable extras listed, as well as the pattern of hours that parents can take the entitlements. This should be fully implemented by January 2026 at the latest.
Invoices and receipts should be itemised, and break down separately into:
- The free entitlement hours
- Additional private paid hours
- Food charges
- Non-food consumables charges
- Activities charges
Providers should ensure these itemised invoices are in place by January 2026. This is to allow parents to see that they have received their child’s free entitlement hours completely free of charge and understand that any fees paid are for additional hours or optional services. Invoices and receipts should include the provider’s full details so that they can be identified as coming from a specific provider.
Parents must be able to opt out of paying for chargeable extras and the associated consumable or activity for their child. For activities and extra services, providers are aware that participation in any optional extra activity should be on the basis of parental choice and a willingness to meet the charges. In these circumstances, children who do not participate in optional activities continue to receive provision that complies with the EYFS.
Providers should be mindful of the impact of charges on families, particularly the most disadvantaged. Providers who choose to offer the free entitlements, are responsible for setting a policy on providing parents with options for alternatives to additional charges. This policy must offer reasonable alternatives that allow parents to access the entitlement for free, including allowing parents to supply their own, or waiving the cost of these items.
In all cases, these chargeable extras must not be a condition of taking up a free place. All parents, including disadvantaged families, must have fair access to a free place. The local authority will intervene if a provider seeks to make additional hours, optional services or optional consumables a mandatory condition of taking up a free place.
Providers should deliver the free entitlements consistently, so that all children within a setting accessing any of the free entitlements receive the same quality and access to provision, regardless of whether they choose to pay for voluntary hours, voluntary extra services, meals or consumables.
The local authority will take all steps available to ensure that the free entitlements are available free of charge and therefore that providers do not charge parents for the following in connection with the entitlement hours:
- Top-up fees (any difference between a provider’s normal charge to parents and the funding they receive from the local authority to deliver free places)
- The supply of or use of any materials, including, but not limited to, craft materials, crayons, paper, books, instruments, toys, or other equipment or learning resources that are necessary for the effective delivery of childcare
- Business running costs, including, but not limited to, rent, staff wages, cleaning materials, insurance, or utility bills such as energy, gas or water
- Registration fees as a condition of taking up a child’s free entitlement place
- Non-refundable deposits as a condition of taking up a child’s entitlement place
- General charges, including but not limited to, non-itemised enrichment charges, sustainability charges, business continuity charges, additional charges, enhanced ratios, hourly rates, or any other supplementary charges on top of the free hours
The local authority will ensure that providers work with parents so that parents understand which hours and sessions can be taken as free provision. Not all providers will be able to offer fully flexible places, but providers should work with parents to ensure that as far as possible the pattern of the entitlement hours are convenient for parents’ working hours. Providers should ensure that children are able to take up their free hours in continuous blocks if they wish to, and there should be no artificial breaks in the entitlement hours. For example, a provider should not offer 10am to midday and 1pm to 3pm as entitlement hours and offer only private paid hours in between.
Early Years Pupil Premium (EYPP) provides additional funding to providers to support the quality of early education for eligible children taking up early education and childcare entitlements. The Disability Access Fund (DAF) supports eligible, disabled children’s access to the entitlements.
Claiming for a child's full entitlement even if the child is not attending for all of it
Providers can only claim for funded hours that have been agreed the child will attend for at the provision*. Parents are under no obligation to take up the full entitlement and may choose to use some hours with another provider. Providers can only claim from the date a child starts at the setting and is eligible for funded hours.
* Providers must supply funded hours from the outset of claiming for the child. Providers cannot hold back funding and charge parents in the meantime to then reimburse them at a later date (for example end of the term).
If a child leaves or does not attend for the funded hours as agreed
For absence or sporadic attendance, providers are not required to inform the council of absence (unless there is a welfare concern) until a child has reached 20 full days of absence (whether over consecutive or sporadic days), or 30% absence within a single term.
Upon reviewing the reasons for absence, we will then determine if funding can be extended to cover continued and legitimate reasons for absence. However, we have discretion to remove or adjust funding if there is no valid reason for absence that has gone beyond the parameters of absence.
If a child leaves the provision outright, the provider can inform the EEF Team, or the provider must reflect the leaving date in the next amendment or actual task for the term. Any over claim will be claimed back by the council as funding will always follow the child.
If a parent breaches the notice period set by the provider
Unfortunately, due to the many variables and the fact the funded hours belong to the child, we will not pay for breaches of notice periods by parents as this is private business that local authorities cannot be involved with.
Further information about working parent entitlements
For further information on the scheme please go to the Childcare Choices website. Here you will find information on the criteria parents must meet and how they should apply.
Confirmed eligible families must present to their chosen childcare provider an eligibility code received from Childcare Choices. The provider will then validate the code and can then claim the funded hours through the EY portal.
Where to get information on payment and headcount dates, copies of parent declaration forms, EY portal guidance, validating working parent codes and so on
You can get this information from our Early Education Funding Team at eef@herefordshire.gov.uk