How much are providers paid for funded hours?

From 1st April 2025, funding rates for all early years providers, childminders and school run provision will be as follows.

All rates are applicable to the specified age range regardless of what entitlement a child is eligible for:

• Children under 2 years old - £9.85 per hour, per child - (rate up to 31st March 2025 - £9.48)
• 2-year-olds - £7.84 per hour, per child - (rate up to 31st March 2025 - £7.56)
• 3 and 4-year-olds - £5.43 per hour, per child - (rate up to 31st March 2025 - £5.08)

Deprivation supplement rates for 3 and 4-year-olds only will be as follows:

• £0.20 lower rate - (per hour, for every funded 3 and 4-year-old in attendance) if between 10-32% of funded children reside in attendance with postcodes in the 20% most deprived areas. From 1st April 2025, settings eligible for this could have an hourly rate of £5.63 per hour for 3 and 4-year-olds
• £0.30 higher rate - (per hour, for every funded 3 and 4 year-old-in attendance) if between 33-100% of funded children in attendance with postcodes in the 20% most deprived areas. From 1st April 2025, settings eligible for this could have an hourly rate of £5.73 per hour for 3 and 4-year-olds

The Contingency fund will continue for 2025 - 26, this is to mitigate financial risk and to manage any unforeseen budget variances as a result of changes in demand. This will be c. 0.9% of the overall budget.

Government guidance instructs local authorities that they must pass through at least 96% of their funding from the government to early years providers. From April 2025, Staffordshire County Council will ensure a budgeted funding pass-through rate of 97.8% to its Staffordshire based providers.