What can providers charge for:
Funded hours only covers the hours a child attends for education, it does not cover the costs of food, other consumables, additional hours or additional services and therefore providers can charge for these if they are accessed or attended for by a child.
But it must not be a mandatory condition that parents must purchase additional services or extras just to gain access to their funded entitlement. Parents must be able to opt out of paying for chargeable extras and the associated consumable or activity for their child.
For activities and extra services, providers should be made aware that participation in any optional extra activity should be on the basis of parental choice and a willingness to meet the charges. In these circumstances, local authorities should ensure that children who do not participate in optional activities continue to receive provision that complies with the EYFS.
When parents do access chargeable extras the provider must advise them of all charges from the outset of a funded place.
Voluntary charges and considerations:
Providers can charge for the following:
- consumables to be used by the child, such as nappies or sun cream
- meals and snacks consumed by the child
- extra optional activities such as events, celebrations, specialist tuition (for example music classes or foreign languages) or other activities that are not directly related or necessary for the effective delivery of the Early Years Foundation Stage (EYFS) statutory framework.
Some parents may wish for a voluntary opt in for payments related to charges for the above.
Providers can charge for additional hours over and above a families funded entitlement. Parents would be expected to pay for additional hours that child attends for and there is no expectation that such charges should be a voluntary opt in.
What if the funded rate is more than what a provider normally charges?
Providers should consider if it is appropriate to charge parents (for items in the above bullet points) if a provider receives more through the funding rate than they would normally charge parents, particularly if some parents ask to opt out of paying for meals, consumables and so on.
For some providers, the funding rate they receive can be higher than what they would normally charge parents (before the funded hours), this has been applicable for under 2s and 2 year old funded rates. In such cases providers should strongly consider waiving certain charges that are 'voluntary' opt in when the funding amount received exceeds the providers' normal day/ or hourly charge.
Setting policies for charges
Providers who choose to offer the funded entitlements are responsible for setting a policy which could give parents the choice of alternatives options to additional charges. Any policy offering reasonable alternatives should allow parents to still access the funded entitlements, including allowing parents to supply their own, or waiving the cost of these items.
Providers should be mindful of the impact of charges on families, particularly those receiving additional forms of government (financial) support such as children who are eligible for Think2.
What providers should not charge for and Top ups:
The Department for Education advises in their guidance that providers do not charge for:
- Top-up fees (any difference between a provider’s normal charge to parents and the funding they receive from the local authority to deliver funded places)
- the supply of or use of any materials, including, but not limited to, craft materials, crayons, paper, books, instruments, toys, or other equipment or learning resources that are necessary for the effective delivery of childcare
- business running costs, including, but not limited to, rent, staff wages, cleaning materials, insurance, or utility bills such as energy, gas or water
- registration fees as a condition of taking up a child’s free entitlement place
- non-refundable deposits as a condition of taking up a child’s entitlement place
- general charges, including but not limited to, non-itemised enrichment charges, sustainability charges, business continuity charges, additional charges, enhanced ratios, hourly rates, or any other supplementary charges on top of the funded hours (unless parents agree to "voluntary" pay for these).
Advertising charges
By January 2026, providers will be required to share their funded offer and fee information to parents, on websites, or social media but it can also be supplied via fee sheets, or a prospectus. The Council supply free advertising for providers on the local authority web site: Staffordshire Connects and other licensed channels.
Staffordshire Connects could be most useful for providers without websites.
Providers who have less than 10 funded children are exempt from this fee advertising, but we advise providers it is still good practice. Providers can register on Staffordshire Connects website.