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1. Overview - early years' provider agreement

Early years' provider agreement effective from 1 January 2025. Overview.


1.1 For the purposes of this service specification 'provider' shall take the meaning given in the Early Education and Childcare, Statutory Guidance for Local Authorities as updated, amended, or superseded from time to time as follows:

  • an early years' provider other than a childminder registered on the Ofsted Early Years' Register
  • a childminder registered on the Ofsted Early Years' Register
  • a childminder registered with a childminder agency which is registered with Ofsted
  • schools taking children aged 2 and over which are exempt from registration with Ofsted as an early years' provider

1.2 This service specification sets out the obligations with which providers are required to comply within the delivery of the early years' entitlement funding for children under statutory school age. The provider must adhere to the provider agreement for all the funded hours they provide.

1.3 The local authority cannot impose requirements which subject the early years' provision, or services provided by the childminder agency, to a quality assessment process by the local authority, or require the provider to attend any training or other quality improvement programme, other than any training or quality improvement programme identified as necessary in an early years' provision inspection report where a provider has been judged less than good by Ofsted.

1.4 This provider agreement builds on the guidance in the Early Education and Childcare, Statutory Guidance for Local Authorities; Operational Guidance for Local Authorities and Providers; the Model Agreement: Early Years Provision Free of Charge and Free Childcare and Early Years Entitlements: and is underpinned by the following frameworks and legislation:

Derbyshire County Council - Directory of Providers

1.5 The local authority will fund maintained schools, academies, and providers in the private, voluntary, and independent sectors to deliver the early years' entitlement funding based on the Ofsted judgement of the provider or the childminder agency.

1.6 The local authority will consider historical information published by Ofsted about a provider or childminder agency. This may include, for example, where the local authority has concerns that a provider judged 'inadequate' by Ofsted or an equivalent judgement made by the childminder agency, may have re-registered their setting to avoid making the quality improvements identified by Ofsted or the childminder agency.

1.7 The local authority will not fund the provider should any third party connected with the provider, (including, for the avoidance of doubt, relating to its Ofsted registration) owe any monies to the local authority. In such circumstances, the funding may be withheld, withdrawn, suspended, or shall be repaid.

1.8 The local authority will not fund childminders registered with a childminder agency, where the agency has indicated that the childminder is not of the appropriate quality.

1.9 Childminders who cancel their membership with a childminder agency must register either with another Ofsted registered childminder agency or Ofsted to be included on the Directory of Providers as an individual childminder to deliver the early years entitlement funding.

1.10 All childminders contracted with the local authority, whether registered with Ofsted or registered with a childminder agency to deliver the early entitlement funding, must have a separate bank account from their personal account for their childminding business. Please note, this does not need to be a business account.

1.11 To claim the early years entitlement funding from the local authority, providers must be registered with Derbyshire County Council on its Directory of Providers. Providers will not receive payments of funding for any periods that are not included on the directory. To be entered on to the directory, providers must:

  • maintain an up-to-date registration with Ofsted (except for local authority, maintained schools) or with an Ofsted registered childminder agency
  • run a setting in Derbyshire
  • agree to and fully comply with the conditions of funding set out in the Provider Agreement for the periods during which the early years entitlements are claimed
  • submit requested documents for a provider agreement to be issued
  • maintain an up to date and 'active' status with Companies House or the Charity Commission if registered with either organisation and/or be registered with His Majesty's Revenue and Customs (HMRC)
  • declare to the local authority the name of any person connected with the provider that has been declared bankrupt, insolvent or had a County Court Judgement made against them (within the previous 6 years). In such circumstances, the funding may be withheld, withdrawn, suspended, or shall be repaid
  • display the setting's Ofsted or childminder agency registration certificate on the premises where the early years entitlement places are provided (except for independent, academy and maintained schools)
  • notify Ofsted and the local authority of changes to the owner(s), registered person, directors, trustees, or committee members
  • notify Ofsted and the local authority of any amendments to the setting's details including change of name (including surname for childminders), address, legal status, sale of business, expansion of provision, contact details etc., as a new provider agreement will need to be issued

1.12 The local authority reserves the right to undertake credit checks on any person connected with the provider to verify the information supplied.