4.1 The local authority will not fund children before eligibility commences. The local authority will not backdate funding prior to the eligibility being confirmed. Providers should ensure they have confirmation of the eligibility codes prior to offering an early years' entitlement funded place.
4.2 The provider should check documentation (for example, passport, birth certificate, NHS red book), to confirm a child has reached the eligible age on initial registration for all the early years entitlements. The provider should record the document seen on the FE1 parent/carer declaration form) and record the date of birth in the Provider Portal. The provider can choose to retain paper or digital copies of documentation although this is not a requirement. Where a provider retains a copy of documentation, it must be stored securely and deleted when there is no longer a good reason to keep it.
4.3 The provider should ensure that a child is eligible for funding before the child is offered a place.
All 3 and 4-year-olds - weekly funding entitlement
4.4 All 3 and 4-year-old children are entitled to 15 weekly funded hours from the start of the term following their third birthday, until they reach statutory school age.
4.5 Children will be entitled to the early years' entitlement funding until they are on-roll in a state-funded school reception class or reach compulsory school age (the beginning of the term following their fifth birthday).
The child is entitled to a full-time school place in the September following their fourth birthday.
Working parent entitlement (HMRC eligibility codes)
4.6 Eligible 3 and 4-year-olds can access an additional 15 funded hours per week in addition to the weekly funded hours. Meaning that eligible children can access a total of 30 funded hours per week from the term following their third birthday.
Eligibility criteria and application for the working parent entitlement.
4.7 In addition to the 3 and 4-year-olds, eligible children from 9 months to 3-years-old can access up to 15 funded hours per week, the term after they reach the relevant age. As of September 2025, eligible children from the age of 9 months will be able to access up to 30 funded hours per week from the term after they reach 9-months-old.
4.8 Most parents/carers applying for eligibility codes will get an immediate determination of eligibility, but HMRC may require further information to make the decision for some parents/carers. Providers should encourage parents/carers to apply in good time and to note the code end date to inform parents about reconfirming their details and ensuring these are up-to-date through their childcare account.
4.9 The local authority cannot fund a child within the same term in which parents/carers receive their eligibility code. Therefore, providers must be aware that eligibility codes they receive from parents/carers are only valid from the start of the following term.
4.10 The local authority does not have discretionary funds to secure additional funded hours where the parent has applied or reconfirmed after the 31 August.
31 December or 31 March deadline dates
4.11 Providers must ensure parents/carers complete all relevant sections of the FE1 parent/carer declaration form to obtain written consent from, or on behalf of parent/carers, to enable the local authority to undertake funded entitlement checks.
4.12 Once the provider has obtained written consent from the parent/carer on the FE1 parent/carer declaration form, they must verify the eligibility of the code before the child is offered a place.
4.13 The Eligibility Checking Service (ECS) allows all local authorities to make instant checks for code validity. The local authority provides a validity checking service to providers via the online Provider Portal, to enable verification of HMRC codes. This service is available all year round, regardless of whether the portal is open for the submission of funded hours.
4.14 The provider must ensure the consent box on the Provider Portal is ticked, to enable the local authority to carry out eligibility checks.
4.15 Audit checks to review the validity of eligibility codes for children who qualify for the early years' entitlement funding, will be undertaken at each monthly submission. Providers will be notified, in the 'Actuals' section of the Provider Portal for the corresponding monthly payment term. Where a parent's code has fallen out of eligibility and entered the grace period, a yellow warning triangle will be displayed in line with the dates listed in table A.
Table A
| Date parent falls out of eligibility | Grace period end date |
|---|
| 1 January to 10 February |
31 March |
| 11 February to 31 March |
31 August |
| 1 April to 26 May |
31 August |
| 27 May to 31 August |
31 December |
| 1 September to 21 October |
31 December |
| 22 October to 31 December |
31 March |
4.16 The provider has a responsibility to alert parents/carers that their eligibility end date is due to expire and encourage them to access their childcare account as a matter of urgency.
4.17 The local authority should ensure that the eligible child has an early years' entitlement place no later than the beginning of the term following the child turning 9 months of age or the child's eligible birthday and the parent meeting the eligibility criteria:
- 1 January - 31 March to take up a funded place during the summer term beginning on or following 1 April
- 1 April - 31 August to take up a funded place during the autumn term beginning on or following 1 September
- 1 September - 31 December to take up a funded place during the spring term beginning on or following 1 January
Upcoming changes to childcare support.
4.18 Children in foster care are eligible for the entitlement funding, providing their foster carers meet the eligibility criteria for foster carers and this is consistent with the child's care plan. Foster carers must apply directly to the local authority who has parental responsibility for the child to determine their eligibility. For children for whom Derbyshire has parental responsibility or other related queries, email info.fis@derbyshire.gov.uk
4.19 The Ministry of Defence (MOD), Department for Education (DfE) and HMRC have agreed a manual process for service families posted outside of England, to apply for the extended entitlement when they are returning to England after a term start date.
Eligibility criteria for service families is the same as for regular applications, and MOD staff will provide HMRC with evidence of their posting before a code will be issued. Please visit childcare for Service children for more information.
The grace period
4.20 A child will enter the grace period when the child's parents/carers cease to meet the eligibility criteria set out in the Childcare (Early Years Provision Free of Charge) (Extended Entitlement) Regulations, as determined by HMRC or a first tier tribunal in the case of an appeal.
4.21 The local authority accesses information via the Eligibility Checking Service to confirm whether a child has ceased to meet the eligibility criteria and entered the grace period. The grace period end date will automatically be applied to eligibility codes.
4.22 The grace period is intended to be used for parents/carers whose financial situation has changed, for example, a parent/carer who may have lost their employment. Providers should not rely on the grace period end date in other circumstances.
4.23 The local authority will continue to fund a place for a child who enters the grace period as set out in the Early Years and Childcare Statutory Guidance for Local Authorities.
4.24 The provider should be aware that a child is not eligible to start a new funded place at an early years' setting during the code's grace period. This also applies to those children who have been attending the same setting prior to taking up the funded hours.
2-year-old assessment-based funding (code issued by the local authority)
4.25 The provider should continue to offer places to children eligible for the 2-year-old assessment-based funding, until they become eligible for the weekly funded entitlement for 3 and 4-year-olds.
Criteria for eligible 2-year-old assessment-based funding.
Parents/carers can check their own eligibility for 2-year-old assessment-based funding.
The local authority will use the Department for Education's eligibility checking system to verify that children meet the eligibility criteria including Universal Credit.
To confirm a child's eligibility for the 2-year-old assessment-based funding, providers should have sight of the letter/email confirming the child's code and valid start date, prior to offering a funded place.
If the parent or carer's immigration status says they have 'no recourse to public funds', they may still get funding for their 2-year-old.
Deferred school place
4.26 The early years entitlement only applies until a child either:
- reaches compulsory school age (the term following the child's fifth birthday) or
- is on-roll for a school reception class from the start of the academic year (1 September) in which the child has their fifth birthday
Find further information about school admissions applications including delayed admissions of summer born children.