12.1 Government funding is intended to cover the cost to deliver 15 or 30 hours a week of free, high quality, flexible childcare which meets the requirements of the EYFS. It is not intended to cover the cost of meals, additional hours, additional services, or some consumables. Parents/carers must benefit financially from the early years' entitlement funding.
12.2 The provider can set their own models of delivery for the early years entitlement funding. Providers should ensure this is explained in the parent information prior to offering a funded place, to support parents/carers make an informed choice of provider.
12.3 The provider can charge for meals and snacks as part of an early years' entitlement funded place and they can also charge for consumables, such as nappies or sun cream and for services such as trips and musical tuition. Parents/carers should therefore expect to pay for these, although providers should be mindful of the impact of additional charges on parents/carers. Providers, who choose to offer the early years' entitlements, are responsible for setting their own policy on providing parents/carers with options for alternatives to additional charges, including allowing parents to supply their own meals or nappies, or waiving or reducing the cost of meals and snacks.
12.4 The provider must deliver the early years' entitlements consistently so that all children accessing the early years' entitlements will receive the same quality and access to provision, regardless of whether they opt to pay for additional hours, services, or meals.
12.5 The provider cannot charge parents/carers 'top-up' fees (any difference between a provider's normal charge to parents/carers and the funding they receive from the local authority to deliver funded places).
12.6 The provider must not charge the parents/carers of funded children, higher rates for additional hours or meals that result in them not benefitting from the early entitlement funding and therefore, all parents/carers must see a reduction in their monthly childcare costs.
12.7 The local authority will not intervene where parents/carers choose to purchase additional hours of provision or additional services such as dance, music, or language tuition, providing that this does not affect the parent's ability to take up their child's funded place. The provider must be completely transparent about any additional charges and models of delivery.
12.8 Charges for additional hours and services not associated with the early years entitlement funded hours are a private matter between the provider and the parent. The local authority will not intervene where parents/carers choose to purchase additional hours or additional services. Providers must ensure they are completely transparent with any additional charges prior to a parent taking up their child's funded place.
12.9 The provider must publish their admissions criteria and any fees for consumables, additional hours and services. These should be made easily available to parents (to enable parents to make an informed choice of provider) and include the number of funded only places (if these are limited), how the places will be filled and ensure parents/carers understand which hours/sessions can be taken as funded only entitlement. Not all providers will be able to offer fully flexible places, but providers should work with parents/carers to ensure that as far as possible the pattern of hours are convenient for parents/carers' working hours.
12.10 The provider can charge parents/carers a refundable deposit to secure their child's funded place but should refund the deposit in full to parents/carers within a reasonable time scale, for example on their first invoice.
12.11 The provider cannot charge an administration or registration fee to parents/carers who are accessing a fully funded place.
12.12 The provider may charge parents/carers a registration fee where they are accessing additional hours. The provider should be mindful of the impact of additional charges on parents/carers, specifically those in receipt of early years funding through an economic eligibility criteria. Providers should ensure that all charges are fair and transparent.
12.13 The provider must not charge parents/carers of children accessing the early years entitlements for consumables that are required to deliver the EYFS, for example craft materials, books, toys, and equipment etc.
12.14 The provider must not charge parents/carers of children accessing the early years entitlements a service/administration charge to cover business costs, for example online registers, accommodation, qualified teaching staff, staff training, learning journals etc.
12.15 The early entitlement hours must be free at the point of delivery, providers can charge for meals, consumables, additional hours, or additional services. However, providers must be transparent about how such charges have been calculated.
12.16 The provider must ensure their invoices and receipts are clear, transparent, and itemised, allowing parents/carers to see they have received their early years entitlement completely free of charge and fully understand fees paid for additional hours or services. The provider must ensure that invoices and receipts contain their full details so they can be identified as being issued by a specific provider.
An example invoice is in appendix 3.
12.17 Independent schools should be mindful of the impact of additional charges on parents/carers. This may result in waiving the registration fee and uniform charges for funded children in nursery, pre-prep, and reception classes.
12.18 Independent schools offering the early years entitlements to eligible children in reception classes must show the funded hours as free on parent invoices.