Understanding Early Years Funding

The government’s Early Years Funding entitlement can often be confusing. It is sometimes advertised as “FREE” childcare, but this can be misleading for families as the funding only covers 38 weeks per year (term-time).

Most working parents require childcare all year round. To support this, we offer a “spread offer”, which allows your funded hours to be distributed evenly across the full year.

For example:

  • A child eligible for 30 hours per week of funding (term-time only, 38 weeks)

  • When spread across 51 weeks, this equates to 22.35 hours per week.

This approach helps families access their funding in a way that better suits year-round childcare needs and your family’s circumstances.

Universal Entitlement (for all families)

  • From the term after your child turns 3 years old

  • 15 hours per week (11.18 for 51 weeks)

  • All families, no income check required

Extended Entitlement (30 Hours)

  • From the term after your child turns 9 months old up to school age

  • 30 hours per week (22.35 for 51 weeks)

  • Working families (including single parents) if:

    • Each parent works at least 16 hours per week at minimum wage

    • No parent earns more than £100,000 per year

Funded 2-Year-Old Places

Some 2-year-olds can also access 15 hours per week if your family meets certain criteria (for example: receiving certain benefits, or if your child has an EHCP or is looked after by the local authority).

Important to Know

If you don’t apply for your funding code in time (before the end of the term), you’ll have to wait until the next term to start. For example if your child is eligible for 2 year funding from April but you do not receive your code by March 31st, you will not be able to access the funding until September. Apply on the Best Start in Life website.

Shared providers

Scallywags Nursery will work in partnership with another setting and share funding with them. Please note the funding shared between the settings cannot exceed the total funding entitlement.

Why is your child’s place not “FREE”?

Scallywags strives to deliver the highest quality care and outstanding practice for our children and families. With the hourly funding rates we receive from the government we would have to make considerable cuts to the care we provide and feel this would be detrimental to our children’s care and experiences that Scallywags provides.

Enrichment Offer (Additional service charge)

Funding provided by the government is for education and care only. It does not cover additional services such as:

  • Meals and snacks

  • High-quality resources

  • Forest School

  • Extra-curricular activities (e.g., Sing and Sign, special workshops)

At Scallywags, these extras are part of our Enrichment Offer, which helps us provide the outstanding experiences our families value. This charge will appear on your invoice, in line with the funded hours your child attends.

Please note: This Enrichment Offer is voluntary.
If you are unable or unwilling to pay, please refer to our Opt-Out Policy, which explains the alternative arrangements available.