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Funding rates

In 2018 to 2019 the funding formula was revised and rates 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.

Table showing base rate funding

Year

2 year old base rate

3 and 4 year old base rate

2020 to 2021

£5.54

£4.39 plus supplements
subject to eligibility criteria set out below

2019 to 2020

£5.46

£4.31 plus supplements
subject to eligibility criteria set out below

Table showing supplements and funding rates

Supplement type

Details

Hourly funding rate

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 calculated annually in the spring term based on the Income Deprivation Affecting Childcare Index (IDACI) scores of children who attended the setting over the previous calendar year. IDACI is a geographical measure (at postcode level) of the proportion of children aged 0 to 15 living in income deprived families. 

The supplement is targeted at providers with the highest average IDACI score, which is in line with national and local priorities. The eligibility bands are:

  • average IDACI score over 0.165 – £0.39
  • average IDACI score over 0.145 – £0.26
  • average IDACI score over 0.125 – £0.13

Providers with an average IDACI score under 0.125 do not receive the deprivation supplement.

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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