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Funding rates

Funding rates for 2018/19 were agreed following a consultation with all providers on a revised funding formula. Funding rates are calculated in the spring term each year, with any changes effective from the summer term of that year

The council funds the free entitlements at the following rates

  • eligible 2-year-olds – flat rate of £5.46 per funded hour
  • 3 and 4-year-olds – universal base rate of £4.31 per funded hour, plus supplements with eligibility criteria as set out below
Table showing supplements and funding rates

Supplement type

Details

Hourly funding rate

Base Rate

Universal base rate for all funded hours for 3 and 4 year olds

£4.31

Early Years Pupil Premium

Added to funding rate for eligible 3 and 4 year olds – universal hours only

£0.53

Deprivation Supplement

Supplement to funding rate for universal and extended hours for all 3 and 4 year olds in the setting

£0.13, £0.26 or £0.39

Deprivation Supplement – Early Years Pupil Premium

Supplement to funding rate for universal hours only for 3 and 4 year olds eligible for the Early Years Pupil Premium

£1.54

Quality Supplement

Supplement to funding rate for universal and extended hours for all 3 and 4 year olds in settings where the EYFS is led by a staff member with a relevant early years qualification at level 5 or 6

£0.14

Deprivation supplement

The deprivation supplement is no longer recalculated termly. The supplement is now calculated annually in the spring term based on the Income Deprivation Affecting Children Index (IDACI) scores of children who attended the setting over the previous calendar year. This is a geographical measure (at postcode level) of deprivation calculated by the government from data on families on low income.

Providers will qualify for the 13 pence supplement where 1 in 5 children are from low income families, 26 pence supplement where 1 in 4 families are from low income families and 39 pence supplement where 1 in 3 families are from low income families.

Quality supplement

Providers should notify the Early Help team if the qualification level of the staff member leading the Early Years Foundation Stage changes. A change resulting in a provider becoming entitled to the quality supplement will result in a change to the settings funding rate from the start of the next term. A change resulting in a provider losing its entitlement to the quality supplement will result in a change to the settings funding rate from the end of the next term.

Contact information

Early Help Team

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