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Claiming free entitlement funding

All providers must agree to the Provider Agreement for Funding Free Places for 2, 3 and 4 year olds before they can claim free entitlement funding.

To apply for free entitlement funding all provider must complete, sign and return the following documents:

  • provider agreement
  • new provider registration form
  • provider portal user access form

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 funding rates
Supplement TypeDetailsHourly Funding Rate
Base RateUniversal base rate for all funded hours for 3 and 4 year olds£4.31
Early Years Pupil PremiumAdded to funding rate for eligible 3 and 4 year olds – universal hours only£0.53
Deprivation SupplementSupplement 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 PremiumSupplement to funding rate for universal hours only for 3 and 4 year olds eligible for the Early Years Pupil Premium£1.54
Quality SupplementSupplement 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.

Video guides are available for running a 30 hour check and the expiration dashboard.

You can also contact the Early Help Team by:

Parent declaration form

All claims must include a signed parent declaration form.

This form ensures you have parent permission to share their information with the council to claim the free entitlements. You must not submit any information on the provider portal until this form is completed and signed.

Completed forms must be retained by you. You must not send copies to the council unless specifically requested.

A new parent declaration form must be completed and signed for each change in hours claimed and attached to the superseded declaration.

Parent declaration forms should be given to parents at the earliest point their child is accessing the free entitlements, for example, the registration process.

Where a child already attends your setting and is due to become eligible for funding the following term, it is advised parents complete and return a parent declaration form to you in the current term in preparation for the forecast payment task.

Information on GOV.UK

Early education and childcare statutory guidance for local authorities (March 2018) on GOV.UK.

Early years entitlements: local authority funding of providers - operational guide 2018 to 2019 (February 2018) on GOV.UK.

Privacy notice

Providing accessible information to individuals about the use of personal data is a key element of the Data Protection Act 1998 and General Data Protection Regulation.

The most common way to provide information is through a privacy notice.

The Department for Education provides suggested wording that early years providers may wish to use, which is available below. You must review and amend the suggested wording to reflect local needs and circumstances, as you will process data that isn’t solely for use within data collections.

You can issue privacy notices in a number of ways, for example on your website, or within:

  • induction packs
  • staff contracts
  • information about social services

Contact Information

Display Name Family Information Service

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