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Read about the arrangements following His Royal Highness, The Duke of Edinburgh’s death.

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

2021 to 2022
(1 April 2021 to 31 March 2022)

£5.62

£4.45 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

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

£0.53

Deprivation Supplement – Early Years Pupil Premium element

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

£1.54

Deprivation Supplement – IDACI element

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

£0.13, £0.26 or £0.39

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 comprised of 2 elements, the Early Years Pupil Premium (EYPP) element and the Income Deprivation Affecting Childcare Index (IDACI) element. 

The EYPP element is paid on universal hours claimed by 3 and 4 years olds eligible for EYPP funding only. Eligibility for the EYPP element is determined by criteria set by the Department for Education.

The IDACI element is paid on all universal hours claimed by 3 and 4 years in a setting. IDACI is a geographical measure (at postcode level) of the proportion of children aged 0 to 15 living in income deprived families.  

Eligibility is calculated annually in the spring term based on the IDACI scores of children who attended the setting over the previous calendar year, with providers eligible for one of 4 bands based on their average IDACI score:

  • Band 3 - £0.39
  • Band 2 - £0.26
  • Band 1 - £0.13
  • Band 0 - £0.00

Quality supplement

Providers should notify the Early Years 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 Years Team

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