Funding rates are calculated in the spring term each year. Changes are effective from the summer term of that year.
Deprivation supplement
The deprivation supplement is made up of the following 2 elements:
Early Years Pupil Premium (EYPP)
The EYPP element is paid on funded hours claimed for a child eligible for EYPP funding.
Go to the EYPP page for more information about eligibility criteria and how to apply.
Income Deprivation Affecting Childcare Index (IDACI)
IDACI is a geographical measure of the number of children aged 0 to 15 living in income-deprived families. IDACI is determined by postcode.
The IDACI element is paid on all funded hours claimed by an eligible setting.
Eligibility for the IDACI element of the deprivation supplement is calculated annually in the spring term. It is based on the IDACI scores of children who attended the setting over the 3 previous calendar years.
All providers are allocated to an eligibility band based on a 3-year rolling average IDACI score.
The bands and the associated supplement, which is added to the provider’s base rate, are:
- Band 2 - £0.32
- Band 1 - £0.16
Quality supplement
Settings can receive an extra 14 pence per hour for all funded hours they claim. A staff member holding a relevant early years qualification at level 5 or above must lead the setting to receive this.
For a list of accepted qualifications, read Early years qualifications achieved in the United Kingdom on GOV.UK.
Make sure you read the 'Full and Relevant' and 'Not Full and Relevant' comments found on the guide tab of the Excel spreadsheet.
A staff member with a relevant qualification at level 5 or above will only count towards quality supplement eligibility in 1 setting. This will be the setting where the staff member is based.
If the qualification level of the leader changes, providers must tell the Early Years Team.
If a provider becomes eligible for the quality supplement, the setting's funding rate will change from the start of the next term.
If a provider no longer qualifies for the quality supplement, the setting's funding rate will change from the end of the next term.
Rates from 1 April 2024 to 31 March 2025
Early years funding rates
| Year | 2 year old base rate | 3 and 4 year old base rate | From 9 months old base rate (from 1 September 2024) |
|---|---|---|---|
| 1 April 204 to 31 March 2025 | £8.49 | £5.85 | £11.51 |
Supplement funding rates
| Supplement type | Details | Hourly funding rate |
|---|---|---|
| Early Years Pupil Premium | Funding rate for all Targeted 2 Year olds or Universal 3 and 4 year olds eligible for the Early Years Pupil Premium | 68 pence |
| Deprivation Supplement – Early Years Pupil Premium element | Supplement to funding rate for all working parent funded hours for all children eligible for the Early Years Pupil Premium | 68 pence |
| Deprivation Supplement – Early Years Pupil Premium element | Supplement to funding rate for all funded hours for all children eligible for the Early Years Pupil Premium | £1.32 |
| Deprivation Supplement – IDACI element | Supplement to funding rate for all funded hours for all children in an eligible setting | £0.16 or £0.32 |
| Quality Supplement | Supplement to funding rate for all funded hours for all children in settings where the EYFS is led by a staff member with a relevant early years qualification at level 5 or 6 | £0.14 |