Childcare and funded places frequently asked questions

Funded hours cover the amount of hours a child attends as part of their funded entitlements, therefore providers can charge parents for the following as funded hours are not intended to cover the cost of these:

• meals
• non food consumables (i.e nappies, wipes)
• additional privately paid hours
• activities, events

If children access these additional services parents should expect to pay for these items. However, providers cannot make it a mandatory condition for parents to purchase extra services or consumables to gain access to funded place.

Extras should be 'voluntary'  therefore parents can choose to opt of the associated service and fee,  but it is for childcare providers to set a policy for what reasonable alternatives are on offer

Costs of extra services and additional hours are determined by the childcare provider and should in line with their normal charging policy.

Government guidance advises that providers do not charge parents for the following in connection with the funded hours:

• top-up fees (any difference between a provider’s normal charge to parents and the funding they receive from the local authority to deliver free 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, mortgage payments, staff wages, cleaning materials, disposal of waste materials, insurance, or utility bills such as energy, gas or water
• additional support costs for children with special educational needs and disabilities (SEND) as part of their entitlement hours or as a condition of accessing an entitlements place. See paragraphs A1.45 and A1.46 regarding the Disability Access Fund and special educational needs (SEN) Inclusion Fund
• 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 free hours

Deposits, Registration and Retainer Fees

Providers can charge parents a refundable deposit or registration fee to secure a child’s funded place, they can also charge a refundable retainer fee.

But providers should consider whether a charge should be applied to some families such as those claiming 2 year funding (Think2) or if charges would be a barrier for a family to gain access to a funded place, but providers must reimburse a deposit by the end of the same term (or off-set against paid for elements).

A provider may choose to keep a deposit if child did not start the place for the funded hours only. When parents are paying for extra hours or services it is possible a registration fee could be off-set against those paid for elements.