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 all funded hours claimed for any child that is eligible for EYPP funding only.
Eligibility for the EYPP element is determined by criteria set by the Department for Education.
Income Deprivation Affecting Childcare Index (IDACI)
IDACI is a geographical measure (at postcode level) of the proportion of children aged 0 to 15 living in income deprived families.
The IDACI element is paid on all funded hours claimed by an eligible setting.
Eligibility
Eligibility 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 with providers eligible for one of 3 bands.
The bands are based on a 3 year rolling average IDACI score and are as follows:
- Band 2 - £0.32
- Band 1 - £0.16
- Band 0 - £0.00
Quality supplement
Settings led by a staff member with a relevant early years qualification at level 5 or above are eligible to receive the quality supplement.
See the Excel spreadsheet Early years qualifications achieved in the United Kingdom on GOV.UK. Take careful note of the 'Full and Relevant' and 'Not Full and Relevant' comments found on the guide tab of the Excel spreadsheet.
It is paid on all funded hours claimed by the setting. A staff member with a relevant early years qualification at level 5 or above will only count towards quality supplement eligibility in 1 setting. This will be the setting in which the staff member is based.
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 setting's 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 setting's funding rate from the end of the next term.
Rates from 1 April 2024 to 31 March 2025
| 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 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 |